Network states will one day compete with nation-states — Web3 exec

Dr. Corey Petty, the chief insights officer at Logos — an initiative focused on developing decentralized peer-to-peer infrastructure for a network state — told Cointelegraph that network states will one day rival established countries and governance structures.

According to Petty, blockchain technology provides individuals with the three necessary components to establish self-governing, sovereign communities in cyberspace, which include trustless ownership, enforceable legal structures, and decentralized communication.

The executive added that the non-locality of network states gives them anti-fragile properties and an edge over traditional nations. Petty said:

"Because they're firmly seated in cyberspace, in the digital realm, they're not necessarily subject to a lot of the burdens that a physical nation-state has, like protecting its boundaries with the military. So, it can achieve a level of economic power on a global scale."

Petty's ideas build on earlier concepts introduced by John Barlow's Declaration of Independence in Cyberspace — an essay on internet freedom and venture capitalist Balaji Srinivasan's Network State — exploring novel forms of societal organization.

Related: US court overturns Tornado Cash sanctions in pivotal case for crypto

Crypto founders explore new frontiers for sovereignty

Balaji Srinivasan, a former Coinbase executive, published The Network State: How to Start a New Country in 2022, which outlined how people can create decentralized countries.

At the heart of Balaji's idea is immutable code through public, permissionless blockchains, which provide the guardrails for finance, governance, and even direct onchain voting in elections.

Ethereum co-founder Vitalik Buterin is also a vocal proponent of decentralized states and experimented with a pop-up city called Zuzalu in 2023.

The experiment lasted for approximately three months and included 200 individuals gathered in Montenegro.

Following the conclusion of the experiment, Buterin said that issues related to governance still have to be solved before network states are viable.

Futurists have also proposed "seasteading," or creating self-governing and self-sovereign floating installations in the ocean that use blockchain for governance.

However, there are currently no permanent seasteads. Proponents of the idea must overcome the technical challenges of using blockchain to run a society and the geopolitical pushback from established countries.

Magazine: Why are crypto fans obsessed with micronations and seasteading?