Executive summary: The Network State by Balaji Srinivasan — How To Start a Digital Country
In this article, I explore the concept of the Network State by Balaji Srinivasan, discussing its potential benefits, step-by-step formation process, and the future implications of digital countries based on blockchain technology.
Summary: The Network State by Balaji Srinivasan explores the idea of creating digital countries using blockchain technologies as their foundation.
Who Is Balaji Srinivasan?
- Balaji Srinivasan is an angel investor and entrepreneur, the former CTO of Coinbase, and a former partner at Andreessen Horowitz.
- He is a thought leader in the blockchain space and a respected voice on the topic.
What Is a Network State?
- A network state is a highly aligned online community that can take collective action, crowdfund territory, and gain diplomatic recognition from existing states.
- Based on the premise that blockchain technology allows the foundation of new societies, which can evolve into digital nations and states.
- Avoids traditional methods of country formation such as war or secession.
The 7 Steps To Forming a Network State
- Founding a Startup Society: A network state begins as a community focused on a specific purpose and introduces a "moral innovation."
- Organize the Society Into a Group Capable of Collective Action: Similar to a union, a network state drives positive change by taking collective action according to its guiding principles.
- Build Trust Offline and a Crypto Economy Online: A network state is backed by a cryptocurrency and builds trust offline to develop into a high-trust society.
- Crowdfund Physical Nodes: The society secures a physical footprint by building physical nodes, such as apartments, farmlands, or other locations.
- Digitally Connect Physical Communities: The capital of a network state is online, connecting members who may be physically distant.
- On-Chain Census Tracking Its Growth: A network state has a ledger of its members, which allows it to track metrics and build clout with other organizations.
- Diplomatic Recognition: The final step is obtaining recognition from existing entities, such as becoming a member of the United Nations.
Why Do We Need a Network State?
- Balaji Srinivasan believes existing systems are not working efficiently and do not foster innovation.
- Network states can provide new ways of organizing societies, ensuring positive change, and legitimately starting new countries.
Do Network States Already Exist?
- While there are some examples of similar concepts, such as e-residency programs in Estonia and blockchain-based voting systems in some countries, network states in the full sense of Dr. Srinivasan's concept have not yet been fully realized.
What Does a Network State Look Like on a Map?
- A network state would have both an online presence and real-world physical nodes, like workspaces or communities.
- It might be spread across multiple geographic locations, with its "map" being a representation of the online connections and offline nodes.
What Does Vitalik Buterin Think About Network States?
- Ethereum co-founder Vitalik Buterin is intrigued by the concept of network states as a potentially more legitimate and organized way of starting new countries.
- He emphasizes the need for careful design and governance of these new digital nations to avoid the pitfalls of the past, such as centralization and a lack of transparency.