In this post,
The authors identify that a key function of the state is to maintain public ledgers such as ownership and citizenship. The possibility and desirability of moving these to the public blockchain are well understood now but the authors note that in the past this concept was not available for debate. Therefore some arguments concerning the benefits and possibilities of Communist and Market Orientated societies must be reevaluated.
We might conclude that a move to blockchain technology could result in a smaller state as it no longer needs to deliver these functions directly.