Crypto glossary
Network state
A network state is a proposed online community, organised with crypto tools, that aims to gain physical territory and eventually diplomatic recognition.
The term was popularised by entrepreneur Balaji Srinivasan in his 2022 book The Network State. He describes a path that starts with an online group united by shared values and a founder, which then uses crypto for payments, identity and governance, crowdfunds physical spaces such as apartments or towns in different countries, and grows large enough to negotiate some form of recognition from existing states. A 'network school' and pop-up cities have been organised as early experiments.
The idea has influenced events such as Zuzalu, a temporary community created in 2023 by Vitalik Buterin, and other gatherings that test shared living, governance and research. It also feeds debates about charter cities, special economic zones and digital citizenship.
Critics argue the concept favours wealthy, mobile participants and could be used to escape taxation or regulation. Concrete results are small so far: temporary villages and coworking hubs rather than self-governing territories, and recognition by any government remains hypothetical.
Example
An online community of developers and researchers rents part of a coastal town for two months, pays for housing in stablecoins and votes on shared rules using its governance token.