And all the peoples of the earth shall see that יהוה’s name is proclaimed over you, and they shall stand in fear of you.

Rebbi Yoḥanan was sitting and reciting in front of the Babylonian synagogue of Sepphoris. The prefect passed by and he did not get up before him. They wanted to whip him; he said to them: Let him, he is occupied in the laws of his Creator. Rebbi Ḥanina and Rebbi Joshua ben Levi appeared before the proconsul of Caesarea. He saw them and rose before them. They said to him, you get up before these Jews? He said to them, I saw faces of angels. Rebbi Jonah and Rebbi Jose appeared before Ursicinus in Antiochia. He saw them and rose before them. They said to him, you get up before these Jews? He said, I win in battle if I see the faces of these. Rebbi Abun appeared before the king. When he left, he turned his neck. They came and wanted to kill him but they saw two sparks of fire emanating from his neck, so they let him go, to affirm what is said (Deut. 28:10): “All peoples of the earth will see that the Name of the Eternal is called over you and they will be afraid of you.”

וראו כל עמי הארץ, "Then all the people of the earth will see, etc." The promise in this verse also refers to the result of our observing the negative commandments. As long as a Jew observes these commandments his face never loses the צלם אלוהים, the image of G'd in which he has been created. As a result of his reflecting this צלם אלוהים, all other creatures, man and beast alike, will relate to him with awe. This is not true of Jews who indulge in the kind of activities which G'd has declared as being abominations in His eyes.

Why are You like a man who is stunned,Like a warrior who cannot give victory?Yet You are in our midst, O ETERNAL One,
And Your name is attached to us—Do not forsake us!

In that day,I will set up again the fallen booth of David:I will mend its breaches and set up its ruins anew.I will build it firm as in the days of old,

So that they shall possess the rest of EdomAnd all the nations once attached to My name
—declares GOD who will bring this to pass.

O Lord, hear! O Lord, forgive! O Lord, listen, and act without delay for Your own sake, O my God; for Your name is attached to Your city and Your people!”

The Gemara asks: Granted, the strap of the phylacteries imparts benefit, as it is written: “And all the peoples of the earth shall see that the name of the Lord is called upon you; and they shall be afraid of you” (Deuteronomy 28:10). And it is taught in a baraita that Rabbi Eliezer the Great says: This is a reference to the phylacteries of the head, upon which the name of God is written. Phylacteries therefore impart the splendor and grandeur of God and are a fit reward. But what is the benefit imparted by the thread of sky-blue wool?