>but in general if contracts can automatically decrease someone’s money, reputation, access etc, they can do enforcement.
No, they cannot. They can reduce these values, but that by itself doesn't enforce anything in the real world. If the entitiy doesn't care about these values (for example because it was a fake account/identity/whatever) then the only enforcement can come from outside.
That's why the word "force" is in "enforcement". States work because, among other things, they ultimately have a monopoly on the application of force.
No, they cannot. They can reduce these values, but that by itself doesn't enforce anything in the real world. If the entitiy doesn't care about these values (for example because it was a fake account/identity/whatever) then the only enforcement can come from outside.
That's why the word "force" is in "enforcement". States work because, among other things, they ultimately have a monopoly on the application of force.