Crypto Entrepreneurs Want to Create New Digital Countries: Is This the Future?

A group of tech entrepreneurs, backed by Silicon Valley investors, dream of a world where people can choose their nationality like they do today with a streaming subscription.

These entrepreneurs want to create “network states”: digital communities that eventually grow into physical countries with their own laws and regulations, made possible by blockchain technology.

What are network states?

The idea of ​​network states comes from Balaji Srinivasan, an influential figure in the crypto space. He argues that technology can replace traditional governments and function more efficiently. These new countries would start as online communities and eventually acquire physical territories, replacing traditional nation states.

“We start new companies like Google, new communities like Facebook, new currencies like Bitcoin. Why not new countries?” Srinivasan said. Citizenship would then be as flexible as choosing an internet provider.

Sample projects of network states

At a conference in Amsterdam, several tech entrepreneurs presented their plans for this new world. One of the most notable projects is Próspera, a “private city” on an island off the coast of Honduras. This project offers entrepreneurs the opportunity to operate in an environment with its own laws and minimal government interference. Despite resistance from the current Honduran government, Próspera is pushing ahead and is suing the government for billions of dollars for the rollback of certain privileges.

Another ambitious project is Praxis, which aims to build a new city-state on the Mediterranean coast, governed entirely by blockchain technology. While details are still vague, founder Dryden Brown stressed that the project aims to create a community centered on “heroic virtues.”

Criticism and controversy

Critics warn that these projects could lead to a new form of colonialism, where corporations gain too much power over people’s lives. There are also concerns that these digital countries could degenerate into dictatorships, run by corporate leaders without democratic oversight. “It’s unrealistic to think that you can just start a whole city without any form of government,” said one skeptical participant at the conference.

In addition, some observers point out that creating a functioning state requires much more than just technology; it also requires essential services such as schools, hospitals, and other infrastructure. Despite these concerns, proponents of network states remain optimistic, seeing it as a natural evolution of society, in which technology helps to circumvent the limitations of traditional governments.

Conclusion

While the idea of ​​network states may seem appealing to those dissatisfied with traditional governments, the concept also raises many questions and concerns. Can technology really create a new form of governance, or will these initiatives fail due to a lack of practicality and democratic control? The future of network states remains uncertain for now.