We are going to end up with something sooner or later.<p>The fact is that we want (and can) enter into contracts on the Internet. In order to enforce contracts we must have identities. Since the Government (specifically the judiciary) enforces contracts, this means that we must be entering into these contracts under Government-managed identities.<p>Currently we acquire and prove this Government-managed identity using an ad-hoc, decentralised, system with much duplication. I can use a passport or my driver's license or my birth certificate or perhaps some utility bills or some combination. This causes various problems, including fraud and waste.<p>If two parties mutually choose to enter into a contract over the Internet, and this contract is to be enforced by the judiciary, then it would be ideal for them to be able to verify each others' legal entities and authorisation. I think that properly implemented this could eliminate a large amount of online fraud.<p>Nothing about the principle of such a system inherently creates privacy problems, since when parties enter into a contract they already expect to reveal their identities to each other, and nothing would necessarily be forcing people to reveal their identities in any other situation, just the same as is the case at the moment.T here is a risk of a slippery slope of course; I can't deny that.<p>There's no reason such a system has to be centralised, though. X.509 certificates would work fine, for example, issued at the same time as a birth certificate, with each local office as a CA.<p>Unfortunately, the problem is with implementation. I don't think that any government is competent enough to put a system together that does meet privacy requirements, and there are too many self-interested parties who would influence and corrupt the design of such a system.