It answers the question, who's watching the watchers? Everyone. And the network itself is paying them to do it.
> ...extremely worrying.
It seems to me this forces people into Nash Equilibrium. Say I now know everything about you and vice-versa and anything we do to each other would be broadcast around the world for all to see and irrevocably encrypted in a worldwide database. And since "...all nodes are anonymous, if it's computationally improbable to be sure of the identity and intentions of all parties who may end up with the data, then all parties are compelled to expand node territory for their own self interest and eschew behaviour leading to M.A.D. outcomes"
> Since when does that protect anyone’s privacy?
It doesn't. And it doesn't care. I don't mean to sound rude but you'll have to throw away this veneration of privacy to grasp what this is really about; like esteeming the Divine Right of Kings, that's not going to work any more. People are fighting over the right to keep riding this precious dead horse while corporations and governments are riding over them in AI Ferraris because they know that the ones who'll will win are those who privately control the most data to train machines to do, well... everything that a human can do and more. They don't care about your privacy. It's long gone and turned into glue. People want to believe in it but it's dead. And the longer people think it's still out there somewhere waiting for them, the longer it'll take them to grasp the power that data affords any party that disregards that belief. Then one day they'll wake up and realize all their land is in the hands of the Conquistadors.