What is a Network State

The concept of a Network State - or an Online Digital State - was developed between 2020 - 2022 and only recently first tools and IT concepts have become available. Compressed in one sentence it can be defined as follows:

A Network State is a digitally-native, decentralized community with a shared purpose, governance, and economy, operating on blockchain technology and recognized as a sovereign entity without a fixed geographic territory.

While traditional nation-states are bound by borders and centralized institutions, Network States transcend geography, enabling dispersed communities to unite around shared values and missions. Powered by blockchain, self-sovereign identity, and decentralized governance tools, they offer a new model of social organization—resilient, transparent, and globally inclusive.

The idea was popularized by technologist Balaji Srinivasan, whose 2022 manifesto The Network State laid out the blueprint for building cloud-based nations. Since then, early experiments have emerged that combine community coordination, digital identity, token-based economies and online forums into functioning micro-polities. For stateless or displaced communities, like the Tibetan diaspora, this model presents a new opportunity: to reclaim self-determination and cultural continuity in the digital realm.

Components of a Network State

For those readers who want to dig deeper into this fascinating concept we have summarised the main components of such a new sovereign digital entity and how each of them corresponds to the Tibetan people's situation.

1) Self-Sovereign Identity (SSI)

Self-Sovereign Identity (SSI) is a new way of managing digital identity that puts individuals—not governments or corporations—in full control of their personal data.

In the traditional world, identity is something issued and verified by external authorities: your passport comes from a government, your login credentials are stored by companies. But this creates dependencies and vulnerabilities—what if your data is stolen, censored, or misused?

SSI flips the model: you own your identity like you own your house keys. Using blockchain technology and cryptographic tools, SSI allows you to store, control, and selectively share your identity credentials (such as name, nationality, or educational background) without needing to rely on centralized platforms.

For the Tibetan people, especially those in exile or living under political pressure, this is revolutionary. An SSI-based digital ID can serve as a free, secure, verifiable proof of identity and community membership, outside the control of hostile states. Combined with privacy-preserving tools like Zero-Knowledge Proofs (ZKPs), it enables Tibetans to safely participate in democratic governance, receive digital services, or claim their share of the New Tibet Coin—without exposing themselves to surveillance or discrimination.

Within NEW TIBET this SSI-based digital ID will be implemented as a so called Soulbound Token, a unique Token (Coin) strictly attached to a real person. Consequently, such a token is priceless and unique and can neither be sold nor traded - therefore it should not be mistaken with a digital currency. Check our dedicated post about this kind of token here.

2) Blockchain Based Economy

A blockchain-based economy is an economic system built on blockchain technology—a decentralized digital ledger that records transactions in a secure, transparent, and tamper-proof way.

Unlike traditional economies that depend on banks, governments, or intermediaries to manage transactions and issue currencies, a blockchain economy allows anyone, anywhere in the world, to exchange value directly—peer-to-peer—using digital currencies or tokens. These transactions are verified by the network itself, not by a central authority.

Every transaction on the blockchain is traceable and auditable, which means funds can be transparently directed to ethical causes, ensuring accountability and trust.

The foundation of this economy is trustless trust: even if you don’t know the other person, you can safely trade with them because the rules are enforced by code and transparency, not by institutions. Moreover, every transaction on the blockchain is traceable and auditable, which means funds can be transparently directed to ethical causes, ensuring accountability and trust.

For NEW TIBET, this approach is not only modern but essential. With the New Tibet Coin, Tibetans and their supporters can build their own digital economy—free from censorship, politically motivated restrictions, or centralized financial controls. It empowers individuals and communities to:

• Send and receive payments securely across borders

• Fund community projects and cultural preservation efforts

• Reward participation in democratic processes or contributions to the network

• Preserve economic sovereignty outside of traditional state systems

The New Tibet Coin is a unique cryptocurrency and designed exclusively for ethical purposes. It is initiated and established (but not controlled) by the Tibet House Cultural Foundation, a non-profit NGO foundation registered in Germany. The foundation is under the patronage of His Holiness, the 14th Dalai Lama and brings back the Tibetan people's own lost currency: the Srang (LINK TO EXTRA POST)

3) Decentralised Governance

Decentralized governance is a new, digital-first approach to collective decision-making—where power is not held by a single authority, but is instead shared transparently among the community. Enabled by tools like blockchain, secure voting systems and smart contracts, decentralized governance allows individuals around the world to participate directly in shaping the rules, policies, and direction of their community—no matter where they live.

However, for the Tibetan people, this is not about starting from scratch.

Tibetans already have a political institution: the Central Tibetan Administration (CTA), the democratic Government-in-Exile, led by elected representatives and guided by the values of His Holiness the 14th Dalai Lama. The NEW TIBET project does not seek to replace this structure, but to extend and enrich it—by providing new digital tools for global participation.

Much like Switzerland’s model of direct democracy, where the population can vote on specific laws and initiatives alongside representative structures, NEW TIBET envisions a hybrid governance model:

• The CTA continues as the recognized political and diplomatic voice of the Tibetan people.

• Meanwhile, a global digital platform enables Tibetans in the diaspora to organize, propose, vote, and contribute to cultural, educational, and economic initiatives in a decentralized, transparent, and censorship-resistant way.

• Community forums and digital referenda can give Tibetans worldwide a more active role in shaping the future of their digital homeland.

Decentralized governance offers complementary infrastructure, not competition. It’s a way to strengthen self-determination, expand participation, and safeguard democracy, even when borders, exile, or surveillance make traditional political engagement difficult.

4) Physical Infrastructure

While NEW TIBET is born online, it cannot live entirely in the digital cloud. Just like any nation, even a digital one, physical infrastructure is essential — it gives the community a real-world presence, supports its services, and creates places for connection, learning, and coordination.

In the context of a Network State like NEW TIBET, physical infrastructure includes:

• Cultural centers and educational hubs where Tibetan language, history, and arts are taught

• Spiritual spaces and retreat centers aligned with Tibetan Buddhist traditions

• Tech and coworking facilities to support innovation, collaboration, and digital inclusion

• Secure infrastructure for hosting digital systems, such as decentralized servers or nodes

Most importantly, these physical locations act as anchor points for the community — especially for the Tibetan diaspora, who are often spread across dozens of countries. Whether in India, the U.S., Europe, or elsewhere, these centers help maintain a sense of homeland, identity, and continuity.

The Tibet House in Frankfurt / Germany

The three official Tibet Houses under the patronage of His Holiness could be the first line of such a physical manifestation of the Network State. The Tibet Houses in Delhi, New York, and Frankfurt (our own) serve as key points of contact and inofficial embassies for Tibetans and anyone interested in Tibet. They act as cultural hubs where Tibetan life is actively lived, shared, and taught — and where members of the community can find guidance on real-world issues such as visas, documentation, and cultural orientation.

In the future, these hubs could also support:

• Identity verification for the Self-Sovereign ID system

• Outreach and onboarding for the NEW TIBET Coin and governance platform

• Public events, dialogues, or voting stations for important decisions

With a growing base and a thriving community these hubs should be enriched by additional places such as Co-living spaces, business centers, or decentralized cities in hopefully many other places ...

This blend of virtual tools and real-world spaces is key to building a nation that is both grounded and free.

5) Legal and Diplomatic Recognition

The strategic vision of achieving international recognition for NEW TIBET — even at the level of institutions like the United Nations — may take time. But as a cultural foundation devoted to preserving Tibetan identity, promoting education, and fostering intercultural understanding, we see it not just as a dream, but as a long-term responsibility.

Such a new modern structure looks to support the efforts of the CTA in their struggle for full diplomatic recognition. The CTA, already serves as a democratically structured political body that is globally acknowledged by the Tibetan diaspora and respected in various diplomatic contexts, even if not officially recognized by states. NEW TIBET seeks to extend and modernise Tibetan sovereignty into the digital realm.

On the path toward international recognition, every step matters – from forging partnerships with NGOs to gaining the support of civil society actors, and opening channels for dialogue with states and intermnational institutions. Each of these milestone brings visibility, momentum, and real impact for Tibetans around the world.

Soft Power

A key strategy for gaining legitimacy is through the effective use of soft power—influence generated not by force, but through cultural strength, advocacy, and economic participation. By sharing compelling stories, developing a meaningful digital economy, and aligning with ethical global movements, network states like NEW TIBET can amplify their message on the world stage. Through media coverage, partnerships with international organizations, and advocacy for human rights, the project can attract both grassroots support and elite interest. This soft power helps lay the groundwork for future diplomatic conversations and raises awareness about the Tibetan cause in new and powerful ways.

At its core, a Network State is not just a technical system—it’s a social, political, and ethical experiment that redefines what it means to belong, govern, and thrive in the 21st century.