Normally you do not use the ID in day to day operations. A better example would be a credit card, which combines a password (or pin) with a cryptographic chip.

Normally you do not use the ID in day to day operations. A better example would be a credit card, which combines a password (or pin) with a cryptographic chip. The card itself is too easy to steal, hence the backup password. The other possibility is biometrics, but these come with their own problems.