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If I were them I would market more the online identity verification aspect and not mention one word about crypto or GPG.

Also, I don't like the choice of a centralized solution for privacy problem. It could have been decentralized.

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Isn't that the point though? Trust is decentralized over multiple accounts that you already control. Keybase just provides an easy way to access that decentralized trust.

If they hold your key, your privacy can be violated. By them, by someone who buys the company or by a secret government court order.

Then download the client and store the key yourself.

I can't store the key myself and I wouldn't want to. I can create it myself but it's stored in a central key server.

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