The Bankless podcast recently explored the potential advantages of authoritarian regimes in the 21st century compared to liberal democracies. The hosts, Ryan Sean Adams and David Hoffman, along with economist Noah Smith and Ethereum co-founder Vitalik Buterin, discussed whether authoritarianism could outcompete liberal democracies. Smith highlighted how the rise of China, weaknesses in the US, and the internet’s impact have led to a reassessment of liberal democracy’s dominance.
Smith argued that the internet’s ability to aggregate vast amounts of data poses a threat to liberal democracies. Authoritarian regimes can use this data to gauge public sentiment, allocate resources efficiently, and respond swiftly to unrest. Moreover, the proliferation of disinformation on the internet complicates governance in liberal democracies, diverting attention from effective governance. Buterin likened the information landscape to a “war of all against all,” where monopolistic control over narratives could become the stable equilibrium.
Counterarguments were also explored, with Smith drawing parallels to the printing press leading to increased liberalism rather than authoritarian dominance. However, the nonlinearities in the current situation, where information costs approach zero and disinformation rises exponentially, pose unique challenges. Buterin highlighted how decentralized systems in the digital world offer robust protections against totalizing control, suggesting resistance to authoritarian dominance.
The discussion also touched on how blockchain technology could potentially save democracy by enabling secure communication and anonymous participation in authoritarian states like China and Russia. Buterin showcased a tool by Rarimo called the “Freedom Tool,” using zero-knowledge proof technology to allow for secure and private online voting. This could create a safe space for dialogue and organization within authoritarian regimes, fostering internal dissent and democratization efforts.
Overall, leveraging blockchain technology and zero-knowledge proofs may help counteract some of the disadvantages liberal democracies face in the digital age. By providing secure, anonymous communication and verifiable voting mechanisms, these technologies offer promising avenues for supporting democratic movements in challenging environments. The future remains uncertain, shaped by the interplay between technological capabilities, political structures, and societal values, emphasizing the need for adaptability and resilience in liberal democracies.
