Let me explain my thinking a bit more clearly.

I believe having a unique digital identity for each person—one that’s decentralized and pseudonymous—could solve many of the current problems online platforms face, especially around fake accounts and manipulation.

Take Uber or a marketplace app, for example. These rely heavily on trust and reputation. But it’s easy for someone to create many fake accounts to harm a competitor’s rating. The same goes for social media, where bots and fake accounts inflate likes, spread misinformation, or fake public opinion. If every person could only have one digital identity, it would make this kind of abuse much harder.

Now, in more serious platforms—like financial apps—users are often forced to go through KYC (linking their account to real-world ID). But imagine a crypto platform where you don’t need to reveal your real identity. Instead, you’d use a decentralized pseudonymous ID, and if you scam or break the rules, you risk permanently losing access to services of that platform. That alone would give users a strong reason to follow the rules—even while staying anonymous.

You mentioned people can still create accounts on other platforms—and I’m fine with that. The point isn’t to stop people from using different services, it’s to make it very costly to abuse one, even anonymously.

As for recovery—yes, there’s a real challenge there. You’d likely need something biometric-based (like Face ID or fingerprint) because it's the only thing that’s truly unique to you and not tied to a central authority. But what if someone loses access (e.g., their fingerprint or device)? One idea could be a multi-sig recovery system, where a few trusted people (like close friends or family) could help restore access using their biometrics too.

Lastly, there’s the risk of your digital ID being linked to your real-world identity. That’s a serious privacy concern. But maybe there’s a way to solve it using cryptography—where your private ID can generate multiple public-facing IDs, and you can prove they belong to the same person without revealing the underlying identity. That way, platforms can still block repeat offenders without knowing who they really are.