With nation-states, those use forced nationality, humans are registered like animals at birth. Born into bondage. P2P nationality, made possible by going from nation-states to distributed virtual states (DVS) where the blockchain is an early example of that, does for law, incentives and mediation what the web 2.0 did for communication.
Examples of a tech-stack for P2P nationality is http://uport.me, built by Microsoft and ConsenSys, running on top of Ethereum, a proto-DVS.
Marshal McLuhan defined two extensions of the human organism, physical tools and cognitive appendages. I've added a third extension: Extensions of social functions, what could also be called laws.
To use law as an extension of the human brain allows the brain to become more than it could be on its own. Law, like stone tools or books, are cybernetic extensions. Nation-states has been an early experiment in rule of law. They've showed us that by using law as an extension of the brain, it is possible to organize at large scales.
Decentralized law is fundamentally different from centralized law, but shares the characteristics that it acts as extensions of social functions in the human brain.