We all pretty much understand that current political structures bordered by geography. People find a place to live and build a social, political, and military infrastructure to preserve a way of life. We build ourselves a manner of living and that life is bordered by oceans, mountains, or negotiated property lines and that is simply how countries are allocated.
Who is to say that a virtual country could not be created? A country whose lifestyles, values, political and social structure defined not by physical borders but exists totally in virtualistance (Ok, I created that word which means: The virtual territory of a country).
Such a country could implement a management process that allows for a political structure to exist, monetary issues can be completely managed in cyberspace, taxation rules can be implemented virtually, and even military protection can be contracted through virtual means.
The citizens could be located anywhere, even in a worldwide system where different planets may someday be populated, goods and services exchanged through virtual means, and country wide judicial systems engineered and directed via technology.
This concept may seem far fetched, but a country created entirely in cyberspace could have almost instantaneous decision making capability, extremely low overhead, and the ability to respond to needs, wants, and problems quickly and efficiently.
Although such a country may not be viable during my tenure on this planet, I suspect the day will come when such an entity exists. How will our existing physical format respond to such a nation and how will such an entity change the way we live?