COVID-19 Breaks Centralized States: Ex-Coinbase CTO

Vladislav Sopov

Balaji Srinivasan, angel investor, engineer, and scientist, shares probably the most profound analysis of the COVID-19 pandemic for all blockchain sphere commentators.


Balaji Srinivasan admits that modern centralized states in the ordinary sense cannot tackle the challenges of the coronavirus pandemic properly. Thus, a totally new class of actors should move to the front.

Call for Decentralized Response

While discussing the prospects of relaxing the stay-in-home orders and other restrictive measures for California, Mr. Srinivasan highlighted that there is only one argument for this:

Unfortunately, it has nothing to do with the positive statistics from treating the coronavirus. According to Mr. Srinivasan, the tremendous economic aftermath from the lockdown has no correlation with protecting the health of its citizens. The state has proven its incompetence and has failed to elaborate on an effective plan to combat pandemics, even with all sorts of restrictions. 

Here is why this mission should go to the entities and local communities. A community-driven response, which includes private screening parameters and green zones, can do better with stopping the disease.

Incompetent States, Centralized States

Mr. Srinivasan outlined that the power has already shifted from federal authorities to states. This is the only initial stage of decentralization. Within its next few phases, the leverages may go to the local communities and private companies. This is the greatest revolutionary social shift triggered by the coronavirus pandemic, and the virus may break centralized states as a concept.

It is worth noticing that even prominent critics of decentralization and cryptocurrencies have already bashed the state for its failure to react properly. As previously reported by U.Today, gold bug Peter Schiff says that the state’s policy is the worst enemy for American democracy, not the virus itself.

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