Part 2/10:
A network state is described as a physical, decentralized social network, visualized as a printed-out version of the cloud. The speaker provides an example of a network state with over 1.7 million people, showcasing its capacity for global, decentralized cohesion. He emphasizes that achieving a critical mass—around one million-odd participants—is key because it aligns with the size of many small countries globally, with less than 10 million inhabitants.