So, I emphasized trustless and decentralized in social organizations. "It just works for social media" isn't exactly addressing what I was getting at. For example, Lemmy has a bot account problem. All that freedom makes it harder to prevent that problem.
But if you're talking about how a government is a system of voting bodies that authorize some action given state (policy), and authority is delegated by some means - say, voting - then the botting problem of Lemmy is not just "something that doesn't work", it's a critical failure which would enable fraud.
So, when I brought up Sybil attacks, I was trying to avoid a long winded digression including arguments from Microsoft on Decentralized ID. But the point being, it can be decentralized. Policy is action given state but action is delegated to people inevitably. But when you vote, would you rather trust a person to count those votes or a trustless automated system?
Yes, (most) everything is feasible in smaller populations (not nuclear maintenance for example). But without technology, they've been isolated, uncoordinated, and easily bullied by those larger organized authoritarian bodies. There are billions of people, and narcissists make up about 1 in 5 of those billions of people. A smaller subset lack basic empathy, and an even smaller subset are intellectually competent. Multiply whatever that probability is by billions of people, and you have a guaranteed concern for every single government on the planet.
I agree with wanting smaller businesses as well. Capitalism isn't bad (communism is state capitalism after all), but corporatism is the emerging problem from right libertarianism that most people conflate as problems with capitalism
My point being isn't that I don't like leftism, they are my ideals. I just don't believe we live in an ideal world, so practically I follow a different set of beliefs. Thay said, I do think leftism is compatible with libertarianism in a way that it can compete in the global arena. And that starts off with solving how a decentralized governmental body "identifies" one and only one person to their "identity" (otherwise you get Sybil attacks)