Have crypto networks become sovereign digital economies?

We've longed debated whether decentralized blockchain networks could ever command the scale, governance structures, and economic depth necessary to function as something more than ledgers for speculative assets.

Reaching a conclusion have proven difficult because most people look at all the wrong things like mass adoption, whilst blockchain markets had achieved complete monetary systems and governance frameworks for self sustenance.

Monetary sovereignty

At the heart of every sovereign economy is a monetary system. The extent to which this system is sovereign proves the sovereignty of the economy.

Yes, I know, so much repetition of the word "sovereignty" but that's the entire focus of this piece.

Moving along. For an economy to be sovereign, it's monetary system must have a functional autonomy to issue and manage its owned currency.

I don't know if anyone noticed but this is the fundamental design of crypto networks.

Governance rests entirely on the native assets of these networks. Yes, even with blockchains that aren't based on proof of stake consensus mechanism, like Bitcoin.

This is because provided there's a native currency that depends on a distributed network of participants, sovereignty is built around a common incentive factor.

One fun fact about network governance is that despite potential centralization factors, these ecosystems remain sovereign economies because they are primarily controlled by stakes with direct exposure to potential losses or gains.

Systematic substitutes signal acceptance

One other thing I believe is central to determining the economic status of these digital networks is how people use them.

You have a country like Nigeria whose people have basically turned to digital assets as a solution to structural problems across its traditional government, this is an indication of acceptance.

Not just any acceptance but one that says "this is a superior economic layer to our oil-rich Nation's economy."

As much as $92 billion are moved by Nigerians through on-chain markets. From stablecoin payments to several other digital assets transactions.

We have the measurable economic scale of these networks, their capacity to issue and manage independent monetary instruments, the emergence of rule-making governance bodies within them, their functional substitution of state financial services in sovereign territories, and their physical footprint in global markets.

All of these points to a sovereign economy. Ethereum alone is a $700 billion ecosystem. Bitcoin is a $1.50 trillion hedge market for not just the decentralized economies but also the traditional economies.

Crypto networks currently runs as a parallel economy to traditional markets and is expected to soon eat up said markets.

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