Calls for direct democracy have recently become a lot more prevalent around the world in the context of the Arab Spring, Los Indignados and Occupy Wall Street movements. This begs the question, how direct democracy would practically work, not only on a local but also a national and international scope. Popular wisdom seems to be that electronic voting could be the silver bullet that would make this possible. However, not only is it hard to trust electronic voting whenever a secret ballot is required, but there is a lot more to making direct democracy work on that scale than simply dealing with the efficiency of counting votes.
Who makes the rules and enforces them is sovereign. Direct democracy is about the legislative decisions, the rules, being made by the people for the people.
The people that are affected by the rules should be deciding which rules need to be defined in that affected group. Rules that affect only a small group should be defined by consensus in that small group. For legislation that affects a larger group the consensus needs to be developed in that larger group. This is the essence of the Principal of Subsidiarity, which implies that authority should be with the most decentralized entity possible and more centralized entities should primarily support the decentralized ones.