That all sounds great, but how does it actually work? So there's an immutable entry describing you in a database, then how do you convince someone that you're the person it describes? Do you need to memorize a private key? If it gets forgotten/compromised, then you've lost your identity forever.

The only way I can imagine physical verification would be to have a microchip implanted in your arm, but that would be unthinkably worse than the current system of (thankfully) mutable, replaceable paper documents we use today.