I think this is a great problem statement. The dynamic at play is that wallets/identities should be free to make, and expensive to lose. That is, the activity y

I think this is a great problem statement. The dynamic at play is that wallets/identities should be free to make, and expensive to lose. That is, the activity your identity participates in, is what gives it weight. So there will be incentive to sign public objects as well as to collaborate via encryption. An identity that has a history of interactions with other identities is harder to forge. One branch of fraud prevention will be based on detecting compromised identities. I think a web-of-trust like model, if the friction is low enough, can build an informal identity system that doesn't need to be imposed from above. Some old thoughts on the idea: https://www.wired.com/2014/07/document-coin/ https://www.wired.com/2014/07/document-coin/