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network-states-and-pop-up-cities
Blog

The Future of Dual Citizenship Across Digital Borders

A technical analysis of how portable, non-conflicting identity attestations will enable users to hold simultaneous membership and rights in multiple network states, moving beyond the limitations of nation-state citizenship models.

introduction
THE FRAGMENTATION

Introduction

Blockchain's sovereign L2s and appchains have created a user experience crisis, demanding a new paradigm for identity and asset portability.

Sovereign execution environments fragment users. Every new Arbitrum, Base, or Polygon zkEVM chain creates a separate identity and liquidity silo, forcing users to manage dozens of wallets and bridge assets for simple interactions.

The current solution is custodial bridges. Users surrender assets to centralized bridges like Wormhole or LayerZero's OFT standard, trading security for convenience and creating systemic risk points, as seen in past exploits.

The future is portable identity. Protocols like EigenLayer's restaking and cross-chain messaging (CCIP) enable a user's reputation and economic security to persist across chains, moving beyond simple token transfers.

Evidence: Over $20B in value is locked in bridging protocols, yet user activity drops >80% when requiring a separate wallet or gas token for a new chain.

thesis-statement
THE DIGITAL PASSPORT

The Core Thesis: Identity as a Portable Utility

On-chain identity will become a composable asset that unlocks liquidity and access across any application or chain, rendering today's siloed profiles obsolete.

Identity is a non-custodial asset that users own and control, not a profile locked inside a single app like Facebook or Discord. This ownership is enforced by cryptographic keys and standards like ERC-4337 account abstraction, which separates identity logic from asset custody.

Portability creates network effects that invert the current model. Instead of apps aggregating users, a user's portable reputation—verified by Ethereum Attestation Service (EAS) or Verax—aggregates liquidity and permissions across DeFi (Aave), gaming (Illuvium), and social (Farcaster) environments.

This kills the sign-up form. Future dApps will read, not request, your credentials. A user's on-chain citizenship, proven via zero-knowledge proofs from zkPass or Sismo, becomes the single sign-on for the cryptoeconomy, reducing friction and sybil attacks.

Evidence: The growth of decentralized identifiers (DIDs) and verifiable credentials, as tracked by the W3C VC standard, demonstrates the architectural shift. Protocols like Gitcoin Passport show how aggregated attestations directly translate to governance weight and access.

deep-dive
THE PROTOCOL STATE

The Technical Architecture of Non-Conflicting Membership

Non-conflicting membership is a cryptographic primitive enabling a single identity to hold provable, simultaneous membership in multiple sovereign systems without creating state conflicts.

Membership is a state proof. Traditional blockchain identity is a balance in a single global state. Non-conflicting membership decouples identity from ledger state, representing it as a portable, verifiable claim. This allows an Ethereum wallet to be a verified citizen in both Arbitrum and zkSync Era without those L2s needing to reconcile a shared ledger.

Zero-knowledge proofs enforce sovereignty. The system uses ZKPs, like those from RISC Zero or SP1, to generate membership attestations. A user proves they hold a valid state root signature from System A to System B, without revealing the underlying private key. This creates a cryptographic alias that is unique to each destination chain, preventing double-spend attacks across domains.

The conflict is in the interpreter, not the data. A single signed message becomes multiple valid memberships. The conflict potential is resolved by the verifying smart contract's business logic, not the cryptographic primitive. This is analogous to how UniswapX interprets an off-chain intent fill; the fill is valid only within its designated resolver context.

Evidence: This architecture mirrors EIP-4337 Account Abstraction's user operation mempool. A user operation is a single intent that multiple bundlers can process; non-conflicting membership is a single credential that multiple verifiers can independently validate, creating parallel, non-conflicting state transitions.

DUAL CITIZENSHIP ACROSS DIGITAL BORDERS

Current State of Portable Identity Primitives

Comparison of leading protocols enabling composable, verifiable identity across blockchains and applications.

Feature / MetricEthereum Attestation Service (EAS)VeraxGitcoin PassportWorld ID

Core Data Model

Schema-based attestations

Schema-based attestations

Stamps (scored credentials)

Proof of Personhood (ZK credential)

On-Chain Verifiability

Native Multi-Chain Support

Ethereum, Arbitrum, Base, 10+ L2s

Ethereum, Linea, Scroll

EVM (via score API)

Ethereum, Optimism, Polygon, Base

Attestation Revocation

On-chain revocable schemas

On-chain revocable schemas

Centralized API control

Nullifier set (ZK)

Avg. Attestation Cost (Gas)

$0.50 - $2.50

$0.30 - $1.80

~$0 (off-chain)

$1.00 - $5.00 (with ZK proof)

Primary Use Case

General-purpose reputation, credentials

Public goods & registry

Sybil resistance for grants

Global proof of unique humanity

Decentralized Schema Registry

Integration Complexity (Dev Hours)

40-80 hrs

30-60 hrs

< 10 hrs (API)

60-100 hrs (ZK circuits)

risk-analysis
DIGITAL CITIZENSHIP FRICTION

The Bear Case: Why This Fails

The vision of seamless dual citizenship across sovereign blockchains faces fundamental economic and technical headwinds.

01

The Liquidity Fragmentation Trap

Cross-chain identity systems like Hyperlane or LayerZero require staked security, creating a capital efficiency nightmare. The $10B+ in locked liquidity for bridges and oracles becomes a massive, non-productive drag.

  • Sovereign chains prioritize native security over shared models.
  • MEV and arbitrage bots will exploit latency in state finality.
  • The economic model collapses under its own weight, akin to early Cosmos IBC adoption hurdles.
$10B+
Locked Capital
-90%
Utilization
02

Regulatory Arbitrage as a Service

Dual citizenship inherently enables jurisdiction shopping, attracting immediate regulatory kill-switches. A wallet holding a Solana NFT passport and an Ethereum DeFi position becomes a compliance officer's nightmare.

  • FATF Travel Rule enforcement becomes technically impossible.
  • MiCA and other frameworks will blacklist bridge protocols, not users.
  • Projects like Polygon ID or zkPass face an unwinnable legal battle against territorial regulators.
100%
Regulatory Target
0
Legal Precedent
03

The UX Unification Illusion

Abstracting chain boundaries for users via intents (UniswapX, CowSwap) merely shifts complexity to solvers and sequencers. The end-user experience remains fragmented by wallet incompatibility, gas token requirements, and unpredictable latency.

  • ~500ms optimistic rollup challenges vs. ~12s Ethereum block times create inconsistent experiences.
  • Wallet drainer attacks multiply across new signature schemas (EIP-712, EIP-4337).
  • The 'unified' frontend becomes the single point of failure and censorship.
~500ms
Latency Variance
10x
Attack Surface
04

Sovereign Maximalism Wins

Ethereum's rollup-centric roadmap and Solana's monolithic design incentivize walled gardens, not open borders. Celestia-based rollups optimize for cheap native execution, not expensive cross-chain calls. Network effects solidify around singular ecosystems.

  • Interoperability is a tax on throughput and security.
  • Developer mindshare consolidates on L2s (Arbitrum, Optimism) with native tooling.
  • The value accrual of 'citizenship' stays trapped within the dominant chain.
-50%
Cross-Chain Demand
1
Winning Stack
future-outlook
THE ULTIMATE STRESS TEST

Future Outlook: The Pop-Up City as the Ultimate Test

The future of digital citizenship will be proven not by theory but by the extreme, temporary demands of pop-up cities and events.

Pop-up cities like Zuzalu are the ultimate stress test for digital identity and governance stacks. These temporary, high-density communities demand instant credentialing, seamless cross-border payments, and fluid reputation systems that legacy infrastructure cannot provide.

The winning stack will be modular, not monolithic. Expect a dominant combination of Ethereum for settlement, Polygon/Solana for throughput, and Worldcoin/zk-Credentials for identity. This mirrors the L2/L3 specialization we see in DeFi.

Sovereign digital nations will emerge from these experiments. Successful governance models from a pop-up city will harden into permanent, opt-in jurisdictions with their own legal frameworks, competing directly with traditional states for talent and capital.

Evidence: Zuzalu's 2023 experiment required participants to use ZK proofs for residency and crypto-native tools for all coordination. This created a real-world dataset proving the viability of trust-minimized, portable identity at scale.

takeaways
ARCHITECTING FOR INTENT

Key Takeaways for Builders

The future of cross-chain isn't about moving assets; it's about fulfilling user goals. Build for the intent, not the transaction.

01

The Problem: Fragmented Liquidity is a UX Killer

Users face a maze of bridges and DEXs, manually optimizing for slippage, fees, and speed. This is a ~$100M+ annual opportunity cost in lost MEV and failed transactions.

  • Key Benefit 1: Abstract the complexity. Let the user specify what they want, not how to get it.
  • Key Benefit 2: Aggregate liquidity across chains (UniswapX, CowSwap, Across) to guarantee the best execution path.
$100M+
Annual Cost
5+
Steps Abstracted
02

The Solution: Build on an Intent-Centric Settlement Layer

Architect your dApp as a declarative interface. Delegate route discovery and execution to specialized solvers competing on a network like Anoma, SUAVE, or Across.

  • Key Benefit 1: Shift risk and complexity off-chain. The solver network assumes responsibility for fulfillment and gas optimization.
  • Key Benefit 2: Enable novel primitives like cross-chain limit orders and conditional intents that are impossible with simple message bridges.
~500ms
Solver Competition
-90%
User Steps
03

The Architecture: Verifiability is Non-Negotiable

Intents must be settled with cryptographic guarantees. Rely on battle-tested verification layers (Ethereum L1, EigenLayer AVS, zkLight clients) not off-chain promises.

  • Key Benefit 1: Prevent solver fraud. Every fulfilled intent must have a verifiable proof on a decentralized settlement layer.
  • Key Benefit 2: Future-proof for multi-chain. A verifiable intent standard (like Chainlink CCIP's approach) is portable across any VM, unlike monolithic bridges.
100%
Guaranteed
1 of N
Settlement Layers
04

The Entity: UniswapX is the Blueprint

UniswapX demonstrates that intent-based design wins. It outsources swap routing to a permissionless network of fillers, abstracting gas and cross-chain complexity.

  • Key Benefit 1: Gasless signing. Users approve intent signatures, not token allowances per chain, radically simplifying onboarding.
  • Key Benefit 2: Native cross-chain swaps. The protocol handles bridging and swapping in a single intent, a direct threat to LayerZero and CCIP for simple transfers.
$10B+
Volume Processed
0
Bridge UI Needed
05

The Risk: Centralization of Solver Networks

The efficiency of intent-based systems creates a centralization vector. A dominant solver or a cartel can extract MEV and censor transactions.

  • Key Benefit 1: Design for solver decentralization from day one. Implement mechanisms like solver staking (via EigenLayer), slashing, and permissionless entry.
  • Key Benefit 2: Use cryptographic privacy (e.g., SGX, FHE) to hide intent details until execution, mitigating frontrunning and ensuring fair competition.
1-3
Dominant Solvers
>50%
MEV Risk
06

The Metric: Capital Efficiency is the New TVL

Forget Total Value Locked. The winning cross-chain primitive maximizes capital velocity, not idle deposits. Measure success in volume per secured capital.

  • Key Benefit 1: Intents unlock rehypothecation. The same liquidity can fulfill concurrent orders across chains without being physically bridged.
  • Key Benefit 2: Attract institutional flow. High capital efficiency and guaranteed execution are prerequisites for large-scale adoption beyond DeFi degens.
100x
Velocity Multiplier
TVL
Obsolete Metric
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Dual Digital Citizenship: The Future of Network State Identity | ChainScore Blog