[kkfx]

Ehm... Actually "problem 2" is not a problem but a feature, at social level, and unfortunately some states start to think allowing private companies to give identities (for driving license or ID cards or "just" digital identities) to citizens-users.

A democratic State is owned by their Citizens, formally at least, so only Citizens can identify other Citizens. Not really a monopoly but a safeguard not to be bannable by Google ID because some "terms violation" with no appeal.

For really decentralized systems the classic chain-of-trust model is more than enough IF people really invest in it.