If someone does steal your identity in this way, there's no way of getting it back. You can't appeal to any authority, because there's no authority to appeal to

If someone does steal your identity in this way, there's no way of getting it back. You can't appeal to any authority, because there's no authority to appeal to in a decentralised system. You literally have to start again and create a new identity. So you're gambling bigger: less likely to have your identity stolen, but complete loss of everything to do with that identity, with no recourse, if it is stolen. I'm not sure I like those odds.