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> Say someone is sanctioned by the US, what stops Bluesky from pulling the plug on their DID thereby blocking and censoring this person from the network all together.

How does IANA handle this with domain names? genuine question, i'm not sure. is it enough to have distinct registrars and distinct jurisdictions for some TLDs and so on?

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They don't. All domains have US jurisdiction except the ones that are underneath country TLDs.

IANA could stop publishing country TLDs in their root zone file but it would probably split the internet in two, and everyone involved knows that. Several root server operators would refuse the update, and many recursive resolver operators would put them back in.

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