Network States

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.

I don't even remember the last time I used BTC.