I tend to agree with you. You get a check mark and that’s cool but an identity was not really verified. I would say NIP-5 does a pretty good job of proving a given about isn’t a bot due to either the effort of setup or paying the fee.

On the flip side the NIP-5 spec makes it sound more like an identifier to make locating an account easier to search for and even the method of having 1000 accounts under one domain does improve account lookup.

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Correct! The spec IS for an identifier. It's not verification. People are confusing the two. That's fine, normally a check mark means verification social networking platforms.

For example: There could be 10,000 billybob accounts on nostr, but only one will ever be billybob@nostrplebs.com.

This isn't verifying that billybob from nostrplebs is the "real billybob". It's identifying that one of the billybob's out there is from nostrplebs. That's it.