A perhaps underappreciated aspect of @balajis's network state definition is the need to begin with a moral issue. The network needs to have a purpose rooted in a moral judgement. The crypto networks that have stood the test of time have this:
Bitcoin: separate money from state
Ethereum: decentralisation
Zcash: privacy
This is why the values which underpin @base are so important. Statements like “base is for everyone” are not empty slogans. They express a values-based mission to build a global economy that is open and accessible to anyone, anywhere.
The thing about moral values is that they come at a cost. Bitcoin could be cheaper and faster but at the expense of robustness. Ethereum could have scaled more quickly but at the expense of decentralization. Base could probably increase short-term revenue by focusing on zero-sum speculation in high-income countries but at the expense of growing an economy that is positive-sum, global and ultimately far bigger.
These tradeoffs are why the "recognised founder” aspect of the network state definition is also so important. The founder is needed to make the hard and costly decisions that are aligned with the underlying moral reason for the network to exist.
Over time, it will be the networks with the strongest moral conviction and founder-led leadership that will cross the chasm to become network states.
Bitcoin: separate money from state
Ethereum: decentralisation
Zcash: privacy
This is why the values which underpin @base are so important. Statements like “base is for everyone” are not empty slogans. They express a values-based mission to build a global economy that is open and accessible to anyone, anywhere.
The thing about moral values is that they come at a cost. Bitcoin could be cheaper and faster but at the expense of robustness. Ethereum could have scaled more quickly but at the expense of decentralization. Base could probably increase short-term revenue by focusing on zero-sum speculation in high-income countries but at the expense of growing an economy that is positive-sum, global and ultimately far bigger.
These tradeoffs are why the "recognised founder” aspect of the network state definition is also so important. The founder is needed to make the hard and costly decisions that are aligned with the underlying moral reason for the network to exist.
Over time, it will be the networks with the strongest moral conviction and founder-led leadership that will cross the chasm to become network states.
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