@balajis.eth what happens to a so called network "state" when guys with guns show up? violence is what defines the line between a country and a country club, no? ofc one can point to places like singapore but these are the historical exception, not the rule

Some answers:

1) Decentralized networks are hard to invade. You can get physically attacked in N places but take refuge in the other K.
2) Crypto networks are also hard to rob
3) You can contract with local states for protection
4) Many netizens will retain dual citizenship for a while, just as people hold BTC & USD

I'll write more about this in book v2, but see the image here. 

Just like a decentralized currency, a decentralized country is hard to invade. Individual nodes of a network state can also choose to not be globally visible.

https://thenetworkstate.com/the-network-state-in-one-image https://i.imgur.com/9hVym60.png

What do you feel about Ethereum OFAC censorsed blocks?

It realistically seems hard to be completely sovereign as you’re bound to incumbent laws

At best you have plausible deniability