The world is having an identity crisis. Maybe it's not so much the world as it is nation-states. So, what really is a nation-state, and why do they all seem to be prima donnas? The systems of tomorrow have been developed and matured, giving individuals another set of tools to secure and manage their lives themselves, bypassing pesky fees and the old guard tax. Systems of the past, which is why nation-states were employed in the first place, are no longer required. If you recall the last newsletter, I referred to the blockchain as a trinity consisting of politics, finance, and technology. That's what the network state is all about—a new system of how we organize and allocate resources.
The open internet is in direct competition with nation-states. This is something everyone knows when thinking about countries that are known to heavily censor the internet, such as North Korea, China, or Iran. It's uncommon that nations such as the United States come to mind; yet, we have seen multiple attempts (and successes) to censor citizens at home. The Twitter files are the latest, most blatant example. The systems of the future are not Twitter. The systems of the future will operate something like a tool called “Tornado Cash.” This is a tool that is open-sourced, non-custodial, and fully decentralized, which mixes cryptocurrencies. It weakens the states ability to discipline & block countries or individuals deemed “enemies of the state” from obtaining financial services to pay for goods & services. It being “Fully decentralized” means there is no single server or entity thats in control. Another way to put it is there’s no single point of failure that nation states can use to shut it the tool down. Almost like the internet was built for that very purpose?
What are nation-states good for anyway? The purpose of modern nations is about having a monopoly on violence to extract returns. This monopoly on violence is what gives the nation-state a sense of power. Yet, as we can see, systems of today and of the future directly challenge this intimate, fragile concept. As these distributed + decentralized tools catch on, the profitable returns through the monopoly on violence fall dramatically, as it consumes more resources to compete. Over time, this corrodes the state's taxation ability as this previously perceived power to extract resources through violence falls. Let's not forget about all the things we do look to the nation-state to provide: a place of record or truth for identity, ownership rights, providing legal frameworks, and protecting national security. Today, it's possible that these services can be provided more efficiently and for cheaper leading for questions of monetary waste. Take a look at Estonia, where the government has implemented a blockchain-based digital identity system called e-Residency, which allows individuals to access government services and open businesses remotely. The Republic of Georgia is using DLT (distributed ledger technology) to record land titles, reducing corruption and improving transparency.
One thing most people think about when it comes to nation-states is their currencies. The nation's currency could be more important to the health and security of the nation than its military force. This is due to the fact that to support your military, you need to obtain resources somehow. Since the nation-state controlled the currencies, this enabled what George Soros termed 'financial alchemy,' really just financial engineering to artificially inflate wealth. This has led to economic instability and inequality, which many people, if transparently understood, would not have agreed to. Could this be why we are seeing Elizabeth Warren call to join her 'anti-crypto' army? Convincing her constituents its better to slowly lose wealth? The sad thing about the current state of our politics tends to be that they are almost predatory, politicians preying on intelligible vulnerabilities. Blockchain has solved the double spend problem with digital currencies, allowing for completely decentralized, open-source code, controlled money overseen by a transparent network of operators that anyone can be a part of. That's why cryptocurrencies are at the center of the scope because of how disruptive they are to the state's ability to perform the financial engineering required to extract value without the public's awareness in the form of inflation. Cryptocurrencies allow for any citizen with access to the internet to allocate their wealth to whatever currency they can find trust in.
A network state model represents a powerful alternative to the traditional nation-state model, offering a decentralized, adaptable, and participatory approach to governance that better suits the challenges of the modern world. By empowering local communities and businesses and leveraging the potential of decentralized technologies, a network state model can promote greater innovation, resilience, and social cohesion. This model also distributes power and authority more widely, reducing the risk of authoritarianism and promoting greater transparency and accountability in governance. These benefits make the network state model an attractive option for those seeking a more inclusive, democratic, and responsive form of governance that can better serve the needs of society.
Interestingly, some of the biggest social media platforms today, such as Meta, could be seen as early examples of network states, although they are centralized entities. With a population larger than any nation-state at 2.9 billion users, Meta has transcended national borders and has come close to achieving network state status. It even attempted to launch its own currency, Libra, which would have made it larger than any single nation-state. However, its centralized nature ultimately led to defeat, and decentralized systems like Tornado Cash have emerged as a result. These systems can be compared to the mythological hydra, where if one server is taken down, more will simply spin up in a different location to continue serving users. Despite this, the network state model remains a compelling alternative to the traditional nation-state model, offering greater innovation, resilience, and social cohesion through the empowerment of local communities and businesses and the distribution of power and authority more widely.
Having input and being sure that your interests are truly represented are the greatest benefits, I believe, to be had from shifting to a network state model. Throughout the past few years, especially during COVID, the public has lost trust in the leaders of the 'free' world due to the globalist state, where the leaders of nations prioritized the globalization agendas of corporate elites in shrinking costs over the interests of national constituents in raising their living standards. Believe it or not, a $0.99 plastic cup from Walmart does not increase the living standard on the metric an average citizen cares about. Average people care about the educational curriculums being taught in their kids' schools, where and how their tax dollars are being spent, and a chance to save for a better future. Embracing the network state model could be the way forward, allowing for more transparent and efficient systems that truly serve the interests of the people.
So, it's time for us to make another shift towards the future and consider the potential of network states. Let's not be passive observers in this shifting landscape but active participants, helping to shape the world we want to live in. We have the power to challenge outdated systems, advocate for decentralized solutions, and create a more transparent and equitable society. By engaging with these new systems, supporting the development and adoption of decentralized technologies, and demanding accountability from our leaders, we can help build a better world—one where the interests of the people truly matter.
Are You Feelin Moody?
INRI