I think the idea is that your identity is registered on the blockchain and the data physically resides in your encrypted storage, that is accessed via this iden

I think the idea is that your identity is registered on the blockchain and the data physically resides in your encrypted storage, that is accessed via this identity. if you lose your keys you are ducked in the same way that you are ducked with crypto in general if you lose your keys. I am not sure exactly, but that's my understanding.