A New Dawn for Governance: Blockchain’s Role in a Post-Nation-State World
In the picturesque town of Zug, Switzerland—often dubbed the “Crypto Valley”—an intriguing dialogue is unfolding about the future of governance. On September 19, 2025, a thought-provoking conference titled “Farewell to Westphalia” delved into the revolutionary potential of blockchain technology as a model for governance beyond the traditional nation-state framework. As the world grapples with the limitations of existing political systems, this event couldn’t have come at a more pivotal time.
Rethinking Governance Models
The conference, organized by a coalition of blockchain enthusiasts, political theorists, and policy makers, explored the idea that blockchain technology can transcend the constraints of the 1648 Treaty of Westphalia, which laid the foundation for the nation-state system. For centuries, this system has dictated international relations, but the digital age is challenging its relevance.
The essence of the discussion revolved around how blockchain’s decentralized and transparent nature could offer an alternative to hierarchical governance models. Unlike traditional systems, where power is concentrated in the hands of a few, blockchain enables a more distributed and participatory approach. This shift could potentially empower individuals and communities by giving them a direct role in decision-making processes.
Blockchain: Beyond Cryptocurrency
While blockchain is often synonymous with cryptocurrencies like Bitcoin and Ethereum, its applications extend far beyond digital currencies. At the conference, speakers highlighted several examples of blockchain being used to facilitate governance. One such instance is Estonia’s e-Residency program, which allows individuals from around the world to establish a digital identity and access government services remotely. This initiative demonstrates how blockchain can reduce bureaucratic hurdles and foster global collaboration.
Moreover, decentralized autonomous organizations (DAOs) were spotlighted as another promising application. DAOs are blockchain-based entities that operate without centralized leadership, relying instead on smart contracts to execute decisions democratically. Through these structures, individuals can collectively manage resources and make decisions, offering a glimpse into a more inclusive governance model.
The Promise and Pitfalls
However, the transition to blockchain-based governance isn’t without its challenges. Critics argue that while blockchain offers transparency, it may also jeopardize privacy. The immutable nature of blockchain ledgers means that once information is recorded, it can’t be altered or deleted, raising concerns about data permanence and individual rights.
Additionally, scalability remains a significant hurdle. For blockchain to effectively replace or complement nation-state governance, it must handle the vast amounts of data and transactions that global participation would entail. Current blockchain infrastructures are still evolving to meet these demands, and it may take years before they’re fully equipped to operate on such a large scale.
Bridging the Gap: Collaboration is Key
During the conference, a recurring theme was the need for collaboration between traditional institutions and blockchain innovators. While some may view blockchain as a threat to the status quo, others see it as an opportunity for symbiosis. By integrating blockchain solutions into existing frameworks, governments can enhance their efficiency and transparency while retaining essential control over critical functions.
For instance, blockchain could streamline electoral processes, ensuring fair and tamper-proof voting systems. In supply chain management, it could offer real-time tracking and verification, reducing fraud and enhancing accountability. These applications illustrate how blockchain can complement, rather than replace, established systems.
A Vision for the Future
As the conference concluded, it became clear that the road to post-nation-state governance is complex and fraught with challenges. Yet, it’s also filled with potential. Blockchain technology offers a vision of a world where individuals have more agency and where governance is defined by community consensus rather than geographical borders.
In an era where global challenges such as climate change, economic inequality, and digital privacy transcend national boundaries, the need for innovative governance solutions is more pressing than ever. Blockchain, with its emphasis on decentralization and transparency, could play a crucial role in shaping a future that’s more equitable and responsive to the needs of all its citizens.
In the words of one conference attendee, “We’re not saying farewell to Westphalia overnight. But it’s time to start imagining what comes next.” As the world continues to explore the possibilities of blockchain, the dialogue initiated in Zug will undoubtedly inspire further debate and development in the quest for a more connected and decentralized future.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
