Many who are involved in cryptocurrency are familiar with Balaji Srinivasan. He is known for his book about the Network-State which details the concept of a world where governance is run according to networks as opposed to nations. It will see, according to his theory, a merging of the digital and physical world.
Ultimately, if his vision is realized, these states will be realized by existing entities as legitimate. The region will have sovereign with "citizenship" being also tied to the network.
Naturally, this is a theory, one which faces many hurdles.
That said, Balaji is now taking the first steps to make this a reality with an experimentation.
The Network School In Singapore
The first step in Balaji's plan is to set up a school.
Before getting to that, let us further detail the network-state concept.
A network state is a social network with a series of features, such as a sense of national consciousness, an integrated cryptocurrency, a consensual government limited by a social smart contract, and a physical territory with the potential to receive diplomatic recognition.
This will incorporate blockchain technology, something that is at the center of his approach.
He is now opening up a school to teach students how to go about building these. It will incorporate many facets of blockchain technology including NFTs representing what was completed.
The focus of the school is: Learn, Burn, Earn, and Fun
It’s a 90-day experiment utilizing the core concepts in his book, the Network State, which offers a blueprint on how to build the successors to nation-states in a world of transformational and emerging technologies like cryptocurrencies and AI.
Will This Lead To A Network-State?
As mentioned there are a great many hurdles.
Having a school where people are taught these principles can have some benefit. However, a lot more is going to be required.
Aiding in this approach, in my view, is artificial intelligence. This is making the digital world ever more powerful. Centralization is going to be an ongoing problem. At the same time, we are going to see economic explosions due to the rise of these technologies. In other words, the network economy is only going to grow. We are likely to see it outpacing the rest of the sectors.
Ever since I read the book, I questioned the physical aspect of things. To me, I think the flaw in the thinking is the belief that existing governments are going to survive the transition we are facing.
The entire discussion centers around the idea that networks are becoming a more important part of our lives. Where we live, geographically, is less important than the network in many instances. Certainly, we still have physical factors but a lot of that is due to governance. We are simply caught in the old system.
Of course, power is not given up freely. Hence, a revolution is required.
For most of human history that means taking up arms. We are not looking at that path in this instance.
We discuss the idea of disruption a great deal. This is a form of revolution. It completely upends the incumbent entities. We often cite how this affects businesses or even industries. Never do we delve into the thought of technology disrupting governments.
My view is that is going to occur at some point.
Our present system, as Balaji points out, is simply not conducive to what is taking place. That said, as mighty as they appear, the largest can fall.
Marc Andreeson said, more than a decade ago, software is eating the world. It took a while to reach a point where it is noticeable but I think we are there.
However, does that mean certain things are exempt. If software is eating the world, aren't governments a part of it?
All institutions are apt to be disrupted. We only need to look at how our present governance system is like a fish out of water when it comes to the digital age. It is only getting worse.
It all boils down to the idea of governance, in a world driven by the digital, that is based upon the physical is not going to last. This will take decades but it is evident which is taking over.
We are likely going to get another hype cycle regarding the Metaverse. If you consider this concept, what role do you see a national government playing in that? The answer should be clear.
In Conclusion
I like to see experiments like this. While I am not sure what value a school like this will have, it is something that is bringing awareness and information. Perhaps some great ideas (start ups) will emerge.
Ultimately, I differ from Balaji in that I think these network-states are going to interact with other ones. The nation-state, as a governance system, will go the way of the feudal system.
It simply is not effective for our time.