…As an example, there seems to be no global consensus on such fundamental questions as when we regulate using the carrot and when we employ the stick. In his seminal book, Code, Lawrence Lessig noted that something like mandatory Internet ID cards would be a political impossibility (at least in the US), despite their utility in increasing the traceability of actions performed on the internet. Instead, he points out the ease of creating incentives for individuals to voluntarily register for an Internet ID by making life significantly easier [2] for those who do so (similar to how a driver’s license is not required, but life is difficult without one). The legacy internet, by virtue of its current structure in which intermediaries play an integral role, contains a series of chokepoints that work well for applying the regulatory thumbscrews.

https://global.upenn.edu/sites/default/files/penn-global/goc22-youngblom-thoughtpiece.pdf