We live in a world where our online IDs are in the hands of the government and banks, and we rely on them to keep it secure. Blockchain IDs on the other hand, put you and you only in control. Therefore, you can store all your passwords and any other personal information on the blockchain, eliminating the need of passwords in everything. In the future, these ID services could be applied to government services, medicines and any other record keeping agency.
Blockchain system exist to combat greed and middlemen and to give individuals ultimate control of their identity and activity. In a blockchain future, we will see a world where our medical records are immediately available if we are in an accident; where online voting was possible; and where transparency was paramount and greed is disincentivized.
I think the blockchain, banks, and government id are 3 different things and cannot be equated. Where the government ID is an identification and with this ID we can create a bank account.
Blockchain is indeed the perfect technology for me, but blockchain cannot be compared with banks and government id. How will we definitely still need a system that is centralized in controlling the government, people will be greedy if everything is in the form of a blockchain.