Sorry for the delay, for some reason I missed the message...

Anyway, I gave an example of why tracking is useful: the well-known case of bitcoiners being kidnapped and tortured to force them to transfer BTCs. If the payment is completely anonymous, well, no one can ever find the culprit. If it's possible to track them, they can be caught. But this also applies at much simpler levels: you pay a company to do a job, they do it but it's defective, or conversely, they do the work and don't get paid. Without the ability to know the counterparty's solvency, anything that can't be handled entirely online via smart contracts with escrows etc is simply a gamble.

One might say, "yeah, but if you don't know how much money someone has, what are you going to do, just start kidnapping people at random hoping to hit someone rich?" but the answer is easy, no matter how much you try to maintain a modest lifestyle, if you have some cushion, it shows. You don't live in a pigsty if you can afford to live well, because you only live once. It doesn't mean you'll drive around in a Pagani flashing a Patek Philippe on your wrist or offer vintage Château Pétrus to the delivery guy, but it'll still be obvious you have something, making you a potential target. On a larger scale, we either turn things into the Wild West, where everyone is armed and ready to defend themselves, or we create a society where the need for self-defense is marginal. The State isn't necessarily a dominus, a Hobbesian Leviathan; it can also be a Democracy if, for example, you implement on-chain voting and create a government structure that isn't oppressive, but still has a role. It has a role in road maintenance, public healthcare where it exists, defense... this role has a cost, and that cost has to be managed somehow.

As of today, I strongly agree with the concept of The Network State, but it stops at the point of coming into existence; it doesn't describe the "after", how to maintain a free society once it born. That's where you arrive at a form of State. To make it truly free, it simply needs to be something shared, with limited power, under the control of the majority, but it must exist. On average, we're honest, but that's just on average, not everyone, not all the time, and you need safeguards in place. Creating a system where it's impossible to be dishonest is a pipe dream; you strive for it as best you can, but it remains an utopia. So, you have to find compromises to live well.