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balajis
@balajis.eth
THE SOVEREIGNTY SPECTRUM Bitcoin set out to achieve sovereignty. Every other cryptocurrency interpolates between BTC and USD. Visually: USD < USDC < SOL < ETH < BTC So, USDC is less sovereign than SOL, which is in turn less so than ETH, which is in turn less than BTC. To be clear: SOL and ETH are amazing achievements, very useful, and deserve all their praise! Because you don’t need to maximize sovereignty in every application. Indeed, I launched USDC at Coinbase with this tradeoff in mind. But you must keep in mind that this *is* a tradeoff. If Bitcoin didn’t exist, with its level of sovereignty, none of the other assets would be possible — either technically or socially. So, the network state is like Bitcoin in this sense. It sets out to eventually achieve sovereignty. It thereby defines one end of the spectrum. As with BTC and USD, there will be many useful intermediates between legacy states and network states. But intermediates aren’t substitutes.
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Idan Levin 🎩 pfp
Idan Levin 🎩
@idanlevin
what makes a network state sovereign in your mind? with a nation-state, it is pretty clear - clear borders, army, recognition from other nation-states etc.
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balajis
@balajis.eth
Cryptographic borders are the most defensible borders. Cryptography is also upstream of the next armies: private keys control the drones. And web3 backends are harder to hack, so the drone control plane is on chain. Finally, diplomatic recognition of network states is like the fiat/crypto interface but for passports.
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Idan Levin 🎩 pfp
Idan Levin 🎩
@idanlevin
Interesting, so a network state sovergnity can also be derived from its own physical defense systems like drones? not just relying on hosting nation states?
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Manuel pfp
Manuel
@manuelmaccou.eth
This may not be accurate, but in a world where defenses were on chain, it would likely be a private blockchain, yea? Which means less defensible against hacks due to less decentralization?
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