What happens if somebody sell illegal stuff like porn or drugs etc on hive?

Hive is a database. It records transactions. Stuff is actually sold peer to peer in the instance you are discussing. Plus hive is only text so I am not sure how porn applies unless someone is writing about kinky stuff, which isnt illegal. Video is not resident on Hive.

Not just china every country on earth block websites

That is because of the DNS system. If one uses .crypto or .zil, blockchain becomes a lot harder if not impossible.

To be on internet doesnt make you outside laws.

Laws are created by nation-states which differ from country to country. However, they are designed in a physical world, and not transitioning to the digital world.

We will see a point in time where nation-states are secondary to what is taking place in the online world.

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