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.
Its hard to entrust your personal details to someone even they said its secured like government and banks because we know that even them can manipulate it for the things they want. Blockchain really helps regarding transparency on everything and it will be a big step for our generation to the future ones.
But remember, we still need the government and banks for our other needs. Like for instance, the government is holding our social security number and other vital details to process our information whenever we need something from them. We can't deny the fact that we still need the banking system. Companies are using banks to send our monthly income. So even if blockchain is a perfect solution, we still do need to interact with government and banks in some ways. We can't fully eliminate them in our daily lives.