I have actually used pseudonymity for some time. It works. It's not perfect, but I find it to be very useful.<p>I fell into it out of necessity because formal legal contracts are often not feasible to enforce when you are paying some guy, who lives halfway around the world, a few hundred or a few thousand dollars.<p>As long as everyone pays their taxes, in some cases this can be a very reasonable method of working with contractors. However, this approach tends to make dispute resolution in a court of law unfeasible.<p>Specifically, for software development I use obfuscation instead of the threat of adjudication to protect myself. Essentially I indicate to the contractor, "Here, build this thing for me. I'm not going to tell you how I'm going to use it. Also, I'm not giving you my real name; I don't need your real name. I'll pay you weekly or even daily so that you don't need to worry much about being unpaid."<p>This is an ancient concept, but the internet makes it much more efficient. There is nothing inherently wrong with this approach but, frankly, it is, wellll, ummmm, kind of weird and very unfriendly because each party is implicitly and constantly indicating, "I don't trust you" to one another.<p>On the plus side, ending relationships is typically extremely quick and easy. "What's that? You refuse to do what I want? I see. Goodbye and good luck." No muss, no fuss, no drama, and no fear of reprisals. I detest arguing with, for example, recalcitrant or incompetent contractors.<p>From my perspective, the ending “relationships part” is super-duper great. I detest becoming enmeshed in sticky personal disputes with contractors whom I have engaged.<p>I need contractors to provide me with deliverables. I strive to prevent them from discussing their personal lives with me. Why? I have found that once contractors start discussing their personal lives with me, they will invariably use my knowledge of their problems as means to justify their excuses for failing to deliver on time and/or on budget.<p>Regardless of their reasons, if they are unable to deliver high quality work on time and on budget, then I need to find another contractor who will.