The Network State

1. The Network State: A New Form of Governance for the Digital Age

A network state is a social network with a moral innovation, a sense of national consciousness, a recognized founder, a capacity for collective action, an in-person level of civility, an integrated cryptocurrency, a consensual government limited by a social smart contract, an archipelago of crowdfunded physical territories, a virtual capital, and an on-chain census that proves a large enough population, income, and real estate footprint to attain a measure of diplomatic recognition.

A new political entity. The network state represents a novel form of governance that combines elements of traditional nation-states with the decentralized nature of the internet. It is built on a foundation of shared values and a moral innovation, rather than geographic boundaries.

Key components:

• Social network with a shared purpose
• Recognized founder providing leadership
• Integrated cryptocurrency for economic sovereignty
• Crowdfunded physical territories forming a global archipelago
• Virtual capital for digital governance
• On-chain census for transparency and legitimacy

Path to recognition. Network states evolve from startup societies, gaining legitimacy through growth in population, economic activity, and physical presence. The ultimate goal is to achieve diplomatic recognition from existing nation-states, establishing the network state as a legitimate political entity in the global arena.

2. From Startup Society to Network State: A Journey of Scale and Recognition

You found a startup society, organize it into a network union, crowdfund physical nodes, digitally connect physical communities, conduct an on-chain census, and gain diplomatic recognition.

Evolutionary stages:

1. Startup society: Initial formation of the community around a shared idea
2. Network union: Organization for collective action
3. Network archipelago: Establishment of physical presence through crowdfunding
4. Network state: Achieving diplomatic recognition

Key milestones:

• Building trust through online and offline interactions
• Developing an internal cryptoeconomy
• Establishing physical nodes in various locations
• Creating a seamless connection between digital and physical realms
• Conducting a transparent, on-chain census to demonstrate scale and legitimacy

The journey from startup society to network state is a process of gradual growth and increasing legitimacy. It begins with a core group united by a shared vision and progresses through stages of organization, physical manifestation, and ultimately, recognition by the international community.

3. The One Commandment: Moral Innovation as the Foundation of Network States

Every new startup society needs to have a moral premise at its core, one that its founding nation subscribes to, one that is supported by a digital history that a more powerful state can't delete, one that justifies its existence as a righteous yet peaceful protest against the powers that be.

Moral core. The One Commandment serves as the foundational principle of a network state, distinguishing it from other political entities and providing a clear purpose for its existence.

Examples of moral innovations:

• "Sugar is bad" leading to a Keto Kosher society
• "24/7 internet is harmful" resulting in a Digital Sabbath community
• "Traditional religion is valuable" forming a Benedict Option society

Historical grounding. The moral innovation should be supported by a well-researched historical narrative, demonstrating the shortcomings of existing systems and the need for an alternative. This digital history serves as both justification and protection against erasure by more powerful states.

4. Digital-First Governance: Redefining Sovereignty in the Internet Era

If the news is fake, imagine history.

Shifting paradigm. Network states operate on a digital-first principle, where the internet and digital technologies form the primary infrastructure for governance, communication, and economic activity.

Key aspects of digital-first governance:

• Cryptographic security replacing traditional military power
• Smart contracts and blockchain technology for transparent governance
• Digital citizenship and identity management
• Virtual capitals and decentralized administration

Challenges to traditional sovereignty:

• Increasing irrelevance of physical borders
• Rise of transnational digital communities
• Cryptographic protection of assets and information

Digital-first governance represents a fundamental shift in how we conceptualize and implement political organization, challenging traditional notions of sovereignty and state power.

5. Cryptohistory and the Ledger of Record: Ensuring Transparency and Trust

Bitcoin's blockchain is the most rigorous form of history yet known to man, a history that is technically and economically resistant to revision.

Immutable record. Cryptohistory, enabled by blockchain technology, provides an unalterable and transparent record of events, transactions, and decisions within a network state.

Benefits of cryptohistory:

• Resistance to historical revisionism
• Enhanced accountability for leaders and institutions
• Verifiable proof of existence for important documents and events
• Foundation for trustless interactions between parties

Beyond Bitcoin. While Bitcoin's blockchain serves as a prime example of cryptohistory, the concept extends to other forms of on-chain record-keeping, including governance decisions, citizenship records, and property ownership within network states.

6. The Tripolar World: Navigating Between NYT, CCP, and BTC

Today's world is becoming tripolar. It is NYT vs CCP vs BTC. That's the American Establishment vs the Communist Party of China vs the Global Internet.

Three power centers:

1. NYT (American Establishment): Representing traditional Western institutions and media
2. CCP (Chinese Communist Party): Embodying centralized state control and surveillance
3. BTC (Bitcoin/Cryptocurrency): Symbolizing decentralized, global networks

Key characteristics:

• NYT: Moral power, focused on shaping narratives and public opinion
• CCP: Martial power, emphasizing state control and physical dominance
• BTC: Money power, leveraging economic incentives and cryptographic security

Navigating the tripolar world. Network states must position themselves strategically in relation to these three power centers, balancing the need for recognition from traditional states with the desire for autonomy and alignment with decentralized networks.

7. Recentralized Center: Building High-Trust Societies in a Decentralized World

The answer then is innovation rather than isolationism or interventionism. A subset of the International Intermediate needs to build something better than both American Anarchy and Chinese Control, a concrete improvement over the propaganda, coercion, surveillance, and conflict that may soon characterize the two pillars of the global economy.

Balancing act. The recentralized center represents a middle ground between extreme decentralization and authoritarian centralization, aiming to create high-trust societies that leverage the benefits of both approaches.

Key elements of the recentralized center:

• Voluntary association based on shared values
• Transparent, cryptographically-secured governance
• Balanced approach to privacy and accountability
• Focus on building trust through aligned incentives

Global alternative. By offering a viable alternative to both American-style anarchy and Chinese-style control, the recentralized center of network states could provide a new model for global governance and social organization.

Last updated: March 21, 2025