This is a fantastic post! A lot of valid points about free-market IDs and insights on how we could think about trust and authentication with no need for a centralized third-party (i.e. government).

I think it would make so much sense to implement a trust system on top of cryptocurrencies. Somehow, we could implement a way to tell how trustworthy an individual node is based on previous events (transactions, feedback from other nodes and the reputation of such, etc). This way we could conduct business online and in person with no need for third-parties or a priori trust.