Overlays and the end of Monolithic Governments
Human beings belong to a hidden stack of networks. Some are public and some are secret. Many we don’t even think about.
Take me for example. Look at all the networks I am part of:
- My local community
- My kids’ school
- The Cosmos ecosystem
- The Web3 ecosystem
- Saga and it’s networks
- Web3 gaming as a market
- The silicon industry as a market
- Generative AI in some areas
- ReFI as part of the ReFi Summit
- Family
- The state government of Washington State
- The federal government in some places
- Probably many that I don’t think much about
When you add up all these Network slices, you soon realize most people are likely part of more than 6 networks at minimum.
These “Network Overlays” are like a stack of networks which form a mesh structure. The same has played out in the blockchain space. Initially what started with a single blockchain has turned into thousands of blockchains.
A network or chain registered with Cosmos, for example, is automatically attached to a list of 50 chains and possibly more if you count IBC, bridges to other networks, AMMs, Axelar nodes as well as on-ramps and off-ramps.
For me, the core deliverable of decentralization is not any one chain: It is the mesh of chains connected together, provided that no one chain can take the rest down.
And when people say: “Make it more decentralized,” part of me wants to say: “As long as I can move my money and assets between chains, thats the source of decentralization: It’s in the mesh, not necessarily inherent in any one economic backbone.”
The same I think will be true of network states and network governance.
Individuals and organizations will belong to meshes of Overlay networks. Each of these networks will be similar to a “Product” from the prior era. In order to persuade an individual or organization to “Register” or “Subscribe” in a given Network Overlay, there will be some standards and expectations as well as value propositions.
I don’t think it is reasonable to ever imagine a single network state or similar entity will “win it all.” Instead, we will see a mesh of networks and each individual and organization may be “subscribed” or “registered” to many.
This will force differentiation. I am imagining these network states competing in a number of ways to provide differentiated services. Perhaps you are in the Developer DAO which offers remote software engineers support in business development and career training as well as favorable retirement and healthcare group benefits. Then you are in a local regional Network State which provides community get togethers and governance tools for local economy and ecosystems.
Etc.
When taken to it’s logical conclusion, what I do expect is to see structures similar to Axelar emerge as almost a form of “Network State App Store. Basically: You set up your Axelar or IBC node, then you configure which Network States you want to add as “Overlays” from a sort of “App Store.” Then you can gain benefits.
What this will do is effectively modularize government itself.
Government “As a Monolith” has shown signs of failing. The future of government is to be made modular in my opinion.
Rather than join one particular nation, you will create a stack of Overlays which are like applications installed on your iPhone.
You will voluntarily install and uninstall the governments and network states you want as you need their services. This modularity will be the source of tremendous innovation as many networks seek to attract the best and brightest talent or most engaged and relevent citizens.
Government and citizenship as a blanket “Yes to all” opt in contract feels to be showing signs of having a viable alternative — something far more dynamic, voluntary that moves far faster.
And it will begin with the ability to register communications and economic nodes that are the foundation of such registrations and subscriptions.
I think thats coming.
