Just allow people to bring their own IDs to servers. Self sovereign IDs, or SSI for short.

Blockchain has a usecase here, and it would be for disabling your ID in case of privkey leak, or for having people or entities strengthen or verify your pubkey or tie a hash of your birth certificate to it.

Blockchains are great for providing reliable immutable and verifiable timestamps of data. The reason they are safe is because a lot of people have tied actual value to it, and thus most don’t want to invalidate the blockchain and destroy their value.