Snow Crash and the Networked State

Recently, I’ve been thinking a lot about one of my favourite science fiction novels: ‘Snow Crash‘ by Neal Stephenson.

“Snow Crash” envisions a future world where nation states have unravelled into chaotic, hyper-commercialised landscapes where traditional governmental structures have largely disintegrated. In this world, power is decentralised and fractured among corporate franchises, private militias, organised crime, and self-governing enclaves. The remnants of state authority are replaced by competing corporate entities and sovereign business franchises, creating a society where almost every facet of daily life, from law enforcement to infrastructure, is run like a private enterprise. This environment not only amplifies economic inequalities but also nurtures an anarchic spirit where corporate interests override the common good.

You probably see where I’m going with this…

Technology-wise, the novel is famous for coining the term Metaverse, which is an expansive virtual reality network that functions as both a social playground and an alternate arena of power. Here, digital avatars and hyper-realistic interactions blur the lines between the physical and virtual worlds, offering people an escape from the decay of their everyday lives while simultaneously serving as a battleground for control over information and culture. There is much more going on, there’s ancient mythology, memetic warfare, and linguistics, with big part of the plot revolving around the concept that language itself can be weaponised into a virus capable of infecting minds and computer systems alike. The novel also has two of my favourite fictional characters, Hiro Protagonist and Y.T.

There are some growing parallels with the modern world, but perhaps not as many as one would have thought back in 1992. The Internet exploded, but it never materialised into the virtual reality landscapes that are common in cyberpunk novels such as ‘Neuromancer’ and ‘Synners’. The Metaverse described by Stephenson therefore never came to fruition, although I admit that we may still be early on that respect. I still think that the future of technology is more likely to be augmented reality, more like ‘Halted State’, ‘Dream Park’, or ‘Rainbows End’. Politically, I’d argue that while the state hasn’t suffered the collapse described in the novel, it surely has been pushed back by large corporate interests.

But that is not why I have been thinking so much about this book. The reason why it’s been in my mind is because there are seeds of the decentralised world it envisions in the concept of the networked state. The concept of networked states refers to a reimagining of governance where power and authority are distributed across interconnected digital and social networks rather than being concentrated in a centralised government. In a networked state, traditional geographic boundaries become less relevant as communities and institutions interact through digital platforms, sharing data and coordinating actions in real time. This model emphasises flexibility, transparency, and citizen participation, with governance emerging from the dynamic interplay of technology, economic interests, and social networks. Such states rely on decentralised systems to deliver public services, enforce laws, and provide community engagement, blurring the lines between public, private, and civic spheres. By leveraging technologies like blockchain, social media, and other digital infrastructures, networked states are supposed to create agile, participatory political systems that respond quickly to societal needs.

In other words, a techno-libertarian cyber-utopia.

Networked states have had a bit of a patched history. The concept itself can be traced back to the rise of the internet and digital communication. These technologies enabled new ways of organising societies and economies, shifting power from hierarchical structures to distributed networks. Sociologist Manuel Castells explored this shift in his work on the “network society“, emphasising how information networks were transforming governance and social relationships. But the modern application moves away from the more left-leaning ideal presented by Castells, and can be seen as an updated take of the libertarian enclave described by Ayn Rand (see “Galt’s Gulch”). The idea gained momentum after the 2008 financial crisis, when distrust in centralised institutions like banks and governments grew. This scepticism spurred interest in decentralised alternatives. A key milestone came in 2009 with the launch of Bitcoin, and the creation or the blockchain. Further innovations that have fuelled the concept are Ethereum, smart contracts, and the creation of Decentralized Autonomous Organizations (DAOs).

More recently the networked state has been mostly pushed by crypto-enthusiasts and other libertarian types. Tech entrepreneur Balaji Srinivasan proposed a networked state as a digital-first community that begins online, builds a shared identity and culture, and eventually seeks physical territory and diplomatic recognition. It’s a theoretical framework for creating a state through networked collaboration. The most prominent example of a networked state is Própsera, which is a semi-autonomous zone in Honduras operating as a “startup city” with its own governance rules. While not fully decentralized or networked in the digital sense, it experiments with alternative governance models and could evolve toward a networked structure. There are also hints of networked state in projects such as Bitcoin City, and the always amusing Cryptoland. 

While many of the projects have never taken off, or have ended in disaster (such as Satoshi, the crypto-cruise), the idea still has a lot of fans, and many of these are starting to get dangerously close to power. Balaji is a bit of a cult figure in some circles, and plans are already underway to purchase large amounts of land around San Francisco to build a networked city called “California Forever“. So we can all laugh at Cryptoland, until such libertarian dreams become a reality.

I’ve been interested in networked states since the efforts from some crypto-enthusiasts to build a crypto-enclave in Puerto Rico after Hurricane Maria in 2018, and I always considered such efforts as some form of gentrification on steroids at best, and neo-colonialism at worst. Then I read about Próspera, and all of my alarms went off. This is the ultimate effort to build a community completely detached from the country where it is located.

So you can probably see the connection with “Snow Crash”. The novel and the concept of a networked state both envision a future where traditional, centralised institutions give way to fragmented forms of governance and social organisation. In “Snow Crash,” the collapse of the nation-state leads to a society dominated by corporate franchises, private security forces, and autonomous city-states, each operating as its own micro-governance unit. This vision mirrors the networked state concept, where power is dispersed among interconnected, often non-governmental, entities, and where digital platforms and virtual communities play a central role in shaping political and social life. Moreover, the novel’s portrayal of the Metaverse anticipates the kind of online ecosystems that underpin networked states. In both visions, the digital realm blurs the lines between public and private, real and virtual, offering alternative spaces for authority and community formation.

This convergence of digital connectivity and decentralised power is described as a dystopia in the novel, but it is seen as an utopia by those proposing the emergence of networked states. What worries me is that we are witnessing a concerted effort to completely dismantle the nation state and the government in the United States. My worry is that we may be witnessing a clear attempt to make networked states the default after the desired crumbling of the US federal apparatus.

This may very well be the latest in a long line of dystopias being read as instruction manuals. As the meme goes:

“Sci-Fi Author: In my book I invented the Torment Nexus as a cautionary tale

Tech Company: At long last, we have created the Torment Nexus from classic sci-fi novel Don’t Create The Torment Nexus”

Please, “Snow Crash” is describing the Torment Nexus. Do not emulate.