The DID integration in my mind is orthogonal to this proposal. It will be done at the protocol level and all event kinds will benefit from it.

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Nice, I would have thought DID would have come first, but I can see the orthogonal approach. Encryption and sovereignty makes sense but privacy could become a concern.

DID is just another NIP-05 field, linking to a DID and not a website.

Yes, but then you can facilitate different identity with different medical providers and your medical data. Nostr clients have a difficult time facilitating the use of multiple accounts let alone a master controlling many identities :)