Prajwal Adhikari

SWE | Interested in Distributed Systems

[Prajwal Adhikari @prajwal_prz]

what's this annoying glitch in the codex weekly usage, it shows 99% and a bit later its 9% and again 99%.
Does this mean that coding is solved? or mostly solved?

[Prajwal Adhikari @prajwal_prz]

when i become rich there will be signs.

[Rachin Kalakheti @rachinkalakheti]

countries for automated companies is crypto's best use case:

tldr;
AI automates companies. Blockchain automates institutions needed for those companies. Together, they form digital countries.

Ronald Coase in 1937 explained why companies exist. They emerge when the internal coordination is cheaper than external market coordination to create something valuable.
Which is why you bring employees, assets, frameworks, etc. together inside a company for coordination to create instead of acting separately.

Even though coordination cost inside companies is lower, the bottleneck is still human limits.
Your company is slow because an engineer is still going through the codebase to find that bug, your sales guy can only work 8 hours a day, and everyone spends the first two hours deciding what to work on. So much of what we know about companies is because of human limits.
It’s an interesting thought exercise to think about what companies would look like without human limits. @jack's restructuring for Block is a great practical example.

so, the first major change that AI is bringing to businesses is in reducing internal coordination cost.

AI agents can manage operations, sales, support, finance, software, research, and decision-making with far fewer humans involved. At a fraction of the cost. And speed.

When the internal coordination cost drops this dramatically relative to the external coordination cost, latent companies emerge.
We’ll see so many companies coming into existence now. For every possible problem (from smallest to largest), there will be a company.

Once the bottleneck for starting a company is gone because of extremely low internal coordination cost, the bottleneck moves elsewhere. The external coordination cost.

Now too many automated companies need to coordinate externally. Otherwise companies don’t make money and die.
But existing infrastructure doesn’t support this scale of coordination.

Historically, countries have been the infrastructure for external coordination between multiple human heavy parties. companies (and citizens) transact with each other not because they trust each other, but because they trust the institution underneath. The country’s laws they operate in.

Countries provide things like property rights, company registry, courts, organized labor, physical safety, and more so that as many companies as possible are born in their country that transact with each other for highest economic output.

When there’s no trust in the underlying institution, you get something like the “udhaar” system that runs deeply in the south asian economy. but that’s unscalable and unprofitable for the country.

So, countries are incentivized to decrease the external coordination cost at scale, but they suffer the same problem as companies do. They're still bottlenecked by human limits. They are slow, expensive, jurisdiction-bound, and extremely bureaucratic.

That is tolerable when businesses and relationships are human-heavy. Not with automated companies.

A court system is built with slow human judges which can’t resolve ten million micro-disputes between AI agents.

A national company registry is not built for dynamic, global, short-lived, and machine-run companies.

Banking rails are not ideal for global machine-to-machine payments.

Existing legal identity doesn’t recognize agents.
Most importantly, people running the system are obsolete.

Watching tech CEOs explain their software to Congress is one of the funniest and saddest things. It’s like watching a child ask stupid questions and say stupid things that stopped being relevant 30 years ago. And the adult in the room has no choice but to dumb himself down to explain their work in the child’s ways.

Except,
the child was supposed to be the adult and vice versa.

I see this tension between companies and countries only getting worse in the age of AI.

This brings us to the next question.
What happens when we remove human limits from this system?

A governance system that enforces property rights, provides dispute resolution, is borderless, species-agnostic, incentivizes external coordination, but also runs at the speed of light, without human limits, at digital scale, at a fraction of the cost.

This is what blockchains are, at the core.

Anyone (including agents) can create an account, store funds, regardless of where they live.
They can transfer those funds to any counterparty across the world, execute contracts, at the speed of light, at a fraction of the cost.
They can raise capital, distribute ownership, or share upside through tokenized structures.
Companies can compose with one another.
They turn companies into software.

Blockchain is everything for automated companies that countries aren’t. The best properties of blockchains are about making external coordination efficient at digital scale.
They’re automated governance.

Aave protocol is a live example of this. Aave performs bank-like functions. But operating inside a blockchain instead of a traditional country has given it structural advantages.

It manages ~$15B in assets and has ~$11.9B in active loans at the operational cost of ~$18M/year, mostly around human wrappers. Aave Labs has about 130 FTEs. In comparison, International Bancshares Corporation, a U.S. bank with similar scale, has 17x the operational cost and 16x FTEs.

Hyperliquid and Tether having one of best earning per employee ratios is no coincidence either.

DeFi, in general, is an early version of automated governance for finance. The next step is a middleware that lets automated companies use blockchains as institutional environments.

I see this use case rising initially from third world nations where the rule of law is already weak. Like how the adoption of crypto as currency started from countries with weak currencies.

This means it also gives us a shot at the world mobilizing the dark talent of the world, as described by @balajis and @pmarca as one of the major problems of 21st century.

If you’ve read The Sovereign Individual thesis, think of this as The Sovereign Company thesis.

[Rachin Kalakheti @rachinkalakheti]

i see a roBuddh running on O’ Lama

[Prajwal Adhikari @prajwal_prz]

Trade Rate cut https://t.co/1bbPlOQndr

[Prajwal Adhikari @prajwal_prz]

love these code comment @0xIchigo

[Prajwal Adhikari @prajwal_prz]

i am restarted
#81056bdbe4a1316e

[Prajwal Adhikari @prajwal_prz]

Trade Rate cut https://t.co/1bbPlOQndr

[Prajwal Adhikari @prajwal_prz]

Trade Rate cut https://t.co/1bbPlOQndr

[Rachin Kalakheti @rachinkalakheti]

How did we end up polling on Discord for Nepal’s next leader? Here’s a rundown:

tldr; Nepali government was overthrown in 48 hours and I think i just witnessed the first internet native revolution.

Over two decades ago, Nepali citizens overthrew the Monarchy to establish a multiparty democracy hoping for a better future. However, two decades later, the leaders of three major democratic parties, who overthrew the monarchy, were still fighting for power and greed.

They went from no slippers on their feet to living in lavish mansions, but the common men were still poor, with no sign of improvements.

However, something changed from around late 2010s. People who relied on national TV and radio for their information started getting wide access to internet. People could see every mishaps these politicians made in real time, every frustrated candid stories of every Nepali citizens, and the rapid development of every other country that used to be on a similar level to Nepal. Frustration started accumulating rapidly among people, all enabled by the internet.

Fast forward to around August 2025, Nepali youths, frustrated by the corruption and incompetencies of the government, started a trend on TikTok called "Nepo Babies" where they created reels comparing the lavish lifestyle of politicians' kids with common citizens of Nepal who couldn't even afford a proper restaurant meal.

This exposé got widespread traction on TikTok and Instagram, which infuriated all the citizens of Nepal who had already lost hope from the current politicians. Everyone started cyberbullying their kids for their lifestyle.

Coincidentally, Nepali government imposed a ban on almost all major social media sites on September 4th 2025 saying they need to register their entities in Nepal and follow a strict content moderation rule imposed by the government, which obviously, these sites declined to.

The problem is over 20% population of Nepal resides outside the country and suddenly they had no proper way to communicate with their relatives back home. This lack of empathy, combined by the suspicious timing around the rise of nepo baby trend and a long standing disappointment in the current establishment was too much for everyone.

Suddenly, on September 5th, a call for a peaceful protest on September 8th started circulating on TikTok, Reddit, Discord, Instagram, etc.

What’s interesting is, this was a decentralized protest, all organized via internet without any central figure. Since it was organized collectively by youths on internet, this protest was given the title of “Gen-Z protest.”

A huge 12,000+ mass appeared on September 8th protest. It started peaceful, but things suddenly got violent. The government gave an order to shoot which led to the death of 20+ people and 300+ injuries by end of the day. Gut wrenching pictures and videos from the protest started floating on internet which led to a widespread outrage against the police and the government.

Later that night, Government gave a very lackluster and apathetic response to such a devastating situation. With this, peace wasn’t an option anymore.

Reddit, Discord, and TikTok was filled with rage and call for revenge on September 9th. People started sharing tutorials on how to create a Molotov cocktail, how to disarm tear gas, etc. This felt like the heat of the moment, but no one expected what was about to come the next day.

Next day, everyone from every part of country started coming out of their houses and protesting against the government. Around early afternoon, news started circulating on internet that a big group was headed towards the house of the Prime Minister. Then another group headed towards another big politician, then another, then another. All of their houses were burnt.

Internet facilitated a realtime coordination for mimetic actions across the nation. This is why “burn their mansions” became the trend for the day within a couple hours across the country. Police force, who were already demoralized from last day’s actions and reactions, showed little resistance on this day.

Almost every major politician’s house was burnt, and many politicians were even beaten brutally by the crowd, on streets, on rivers, and in their mansions.

I was on Reddit and Discord all day. It truly felt like dropping at a warzone where everyone is coordinating attacks, sharing real time updates, and even telling which locations to avoid, etc. By late afternoon, the prime minister resigned and took refuge under the army alongside many other politicians. Army took control for security later that night and wanted to host negotiations with the protestors.

The problem was, there was no representative for the protest. It was all a collective decentralized effort. So people started discussing and polling on Discord and Reddit on who should represent the protestors and who they should nominate as their future leader.

It’s been a chaotic effort (who knew decentralization would be chaotic), but they’ve finally agreed upon who they want to nominate. Discussion between Army, the President, and the protestors is still ongoing, but it’s almost guaranteed now that the leader nominated by the Discord polls will take the position within a couple days.

It was an unfortunate event where many things went wrong and the destruction pushed Nepal back by years, but the sequence of events were very unique, where almost everything originated and accumulated from the internet. The dissatisfaction accumulated for years on internet, and suddenly in two days, the government was overthrown, all coordinated via Internet with no central figure. In many ways, the protest happened on the internet for years, but the government didn’t listen.

I suspect this pattern will emerge across many other countries now that the world has seen what’s possible. The Network State is becoming a real thing.

[Prajwal Adhikari @prajwal_prz]

@mert Why rent when you can own👀👀

[Prajwal Adhikari @prajwal_prz]

@TheGrowingAware @Cointelegraph @Micro2Macr0 Just like how we dig up oil, instead we mine lost btc, with super duper cryptography ofc..

[Prajwal Adhikari @prajwal_prz]

@chainyoda Nepal mentioned 🐄

[Fluxe @FluxePay]

We're excited to announce Fluxe, a compliant universal privacy payment protocol for stablecoin.

[Twine🕸️ @twinexyz]

TWINE DEVNET IS LIVE

We're inviting builders to transform the way applications are built and felt onchain together.

[Rachin Kalakheti @rachinkalakheti]

An ideal blockchain is an interop protocol all the way down

There’s been a lot of discussion on CT lately around high TPS, low latency, and every measure surrounding blockchain performance. However, I don’t think it’s the complete picture. Historically there’s been a pattern where excitement around a new blockchain design is followed by new interop designs.

Alt L1s followed by bridges, Cosmos chains followed by IBC, L2s followed by shared sequencer, modular chains followed by chain abstraction, and so on. In many ways, interoperability between chains is becoming progressively coupled with the chain itself with a bridge being least coupled to a shared sequencer being the most.

This makes sense because when you strip everything down, at its core, a blockchain itself is an interoperability layer for its apps since it allows a new app on its chain to seamlessly interoperate (sync composability) and use other apps within the same chain.

This is arguably the best value offering a chain can provide since any other innovations like speed tend to get commoditized over time. In other words, innovation at the execution layer is mostly a bootstrapping mechanism, and the value is mostly in being an interop layer (see Celestia’s recent developments on LazyBridging).

However, the convenience of building on the same chain doesn’t come without tradeoffs. The more integrated a blockchain system is, the more homogeneous it becomes which leads to less sovereignty and more constraints for apps built on top. One of the major tradeoffs you make as an app is you give up a significant portion of your revenue (in form of MEV, priority fees, etc.) for convenient interop.

This leads to an unfair marketplace between apps and the chain they’re built on. It may not be as big of an issue as a small scale app since convenience matters more. But at one point, when you start driving enough orderflow and value and most of which is independent to the rest of the network, giving it away to the chain doesn’t make sense. We’ve seen many examples of apps leaving chains to operate independently for the same reasons, with the latest one being Jupiter, a leading DEX aggregator on Solana.

While revenue is a major reason to operate independently, things like customized execution environment, cheaper fees, and niche features are also equally important reasons.

Does this mean general purpose chains in long term are only a launching ground for long tail apps?

Not really, because as I mentioned above, the core value offering of a chain is interoperability, and everything else is secondary. Since apps would self-sequence, the best they can get is super fast async composability with other apps using the underlying chain, which is a tradeoff apps would happily take in return of full sovereignty. Apps for usability and chains for composability.

This feels like the most sustainable apps<>chains relation where apps make almost all of the revenue generated on the app-specific transactions and the chain would make revenue on cross-app transactions. The more apps and chains a chain can provide access to, the more valuable it becomes. This is also where apps start to look more like L2s, a line which I think will blur over time. Meaning, Ethereum not focusing on L2 interop from the beginning is on of its biggest fumbles.

All this to say, I think chains with the focus on widest built-in trust-minimized interop services will win in long term (shilling @twinexyz).

[toly 🇺🇸 @toly]

🤯🤯🤯

Holy smokes. First steps to stateless validators

[Prajwal Adhikari @prajwal_prz]

@SuccinctLabs Succinct goes vrooooom

[rushi @rushimanche]

@twinexyz is gonna rip faces

cc @rachinkalakheti

[Bryan Pellegrino (臭企鹅) @PrimordialAA]

Super cool to see more advanced DVN architecture continue to be developed. We always knew there would be progression but awesome to see it play out