Identity requires discovery. You have an identifier, what does it mean? Our traditional answer has been a directory. And until blockchain directories were invariably centralized.
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Identity problems fundamentally expand to sprawling, physical infrastructure concerns. Brick-and-mortar stores expect some ID, and changing which ID they accept is multi-decades long political process, so we're stuck with phone numbers, SSNs, and byzantine DNS system forever.
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Potentially related: Very excited for someone to make this story into a new Bond movie. https://www.theguardian.com/technology/2014/feb/28/seven-people-keys-worldwide-internet-security-web …
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Requires trusted oracles to provide a notary-type service that links a single internal identifier with a single external agent, trading your identity management problem for a trust management problem - which may a more intractable problem in a distributed environment.
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Identity isn't native and if it is the system is already subject to regulatory capture. So you either rely on external oracles or you make node validators subject to wrench cryptography.
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Decentralized systems are inherently probabilistic. Identity is not.
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It is crazy to think of a future where I'm "95% likely to be me"
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Because people usually think that identities owns you, while in reality you own identities. This confusion make them work on the wrong problem of building identity oracles and/or directories, instead of working from the axiom that a private key is an identity.
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I'd expand on this saying that Identity is often something you need to convince a court to defend, and current law views Identities as owning you and not the other way around.
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B/c most use a wrong notion of identity! I am me not b/c of my SSN or my URI but because my family, friends, and colleagues all agree I'm me. Identity is a recursive social construct; the right dist. soln. starts from this principle instead of trying to protect some private key.
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