Briefly, when the ID provider issues the ID it gets cryptographically bound to your phone. When you use the ID to prove something to a site (age, citizenship, etc) the is done by using a zero-knowledge proof based protocol that allows your phone to prove to the site (1) that you have an ID issued by your ID provider, (2) that ID is bound to your phone, (3) the phone is unlocked, and (4) the thing you are claiming (age, citizenship, etc) matches what the ID says. This protocol does not convey any other information from or about your ID to the site.
Otherwise a single person could donate their ID card and let everyone else authenticate with it.
Now you might counter and say it would be enough to give each card a sequential number independent of the person's identity, but then you run into another problem. Each service might accept each card only once, but there are many services out there, so having a few thousand donations could be enough to cover exactly the niche sites that you don't want kids to see.
There is no way to implement this without a complete authoritarian lockdown of everything. There will always be people slipping past the cracks. This means all this will ever amount to is harm reduction, but nobody is selling it on that platform. Nobody is saying that they are okay with imperfect compromises.
And before anyone asserts that the phone can be anonymous, that doesn't work, otherwise you can just have an app that claims to have a verified ID attached.
The difference is meaningful. It's mostly prisoners dilemma. If only one persons porn habit is available thats bad for them. If everyones (legal) porn habits are available, then it gets normalized.
The problem isn't my peers, it's the people in power and how many of them lack any scruples.
this is too narrow a view on the issue. the problem isn't that a colleague, acquaintance, neighbor, or government employee is going to snoop through your data. the problem is that once any government has everyone's data, they will feed it to PRISM-esque systems and use it to accurately model the population, granting the power to predict and shape future events.