Blockchains are most useful as a tool to innovate in regulated industries. 

You build a parallel state onchain that subsumes the function of the agency you are competing with.

Legitimacy comes from millions democratically opting into the new system. Capital to defeat the old system comes from asset appreciation.

In this model, Bitcoin competes with the Fed and Ethereum competes with the SEC.

This is *different* from the mid-2000s era startup playbook, which assumes your competitors are companies.

The new playbook recognizes that the primary obstacles are DC-affiliated actors around the world. New tactics are thus needed.

what combats the state military with a blockchain?

How do civilians control the military without guns? Psychologically and culturally.

That is also how the Soviets lost control at the end. The tank commanders wouldn’t obey the “conservatives” (meaning the communist hardliners).

neuroscience, regenerative medicine enthusiast, "Endless forms most beautiful and most wonderful"

very interesting as to what leads to the formation of military power in the first place, the state has to be somewhat on top of the identity stack

How do civilians control the military without guns? Psychologically and culturally.

That is also how the Soviets lost control at the end. The tank commanders wouldn’t obey the “conservatives” (meaning the communist hardliners). 
https://www.latimes.com/archives/la-xpm-1991-08-22-mn-1243-story.html

Really good question. I have the same question for law enforcement.