Cryptocurrency

The term cryptocurrency describes online digital currency for which transactions are recorded and stored in multiple identical public ledgers by a decentralized network of peers. While the ledgers are public, they may be designed so that privacy is somehow protected. This contrasts with regular fiat currency which often takes a digital form - ones and zeros in your bank account. But this digital form is maintained in private ledgers by centralized authorities. The authority keeps backups, but you can’t participate in the process and you can’t directly audit anything to make sure the system is uncorrupted.

How is cryptocurrency relevant to the Network State?

Fiat currencies require centralized authority. Cryptocurrencies are decentralized by design, the perfect tool for the Network State economy.