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Any digital ID not using a form of blockchain tech is doing it wrong in my view.

What purpose would that serve if identity is assigned by a centralized entity (the government)?

Fraud prevention and decentralised id verification.

In a nutshell itd give identities the same level of technological protection that crypto currencies have.

There is nothing this does that digital signature don't already.

Implementation details matter

Would be very useful for voting too. Bulletproof fraudulent vote or ballot modification prevention.