1. the government knowing who you are authenticating yourself to
2. or the recipient learning anything but the fact that you are a human
3. or the recipient being able to link you to a previous session if you authenticate yourself again later
The EU is trying to build such a scheme for online age verification (I'm not sure if their scheme also extends to point 3 though. Probably?).
I get it for age verification: it is difficult for a child to get a token that says they are allowed to access porn because adults around them don't want them to access porn (and even though one could sell tokens online, it effectively makes it harder to access porn as a child).
But how does it prevent someone from using their ID to get tokens for their scrapper? If it's anonymous, then there is no risk in doing it, is there?
The service then links the token to your account and uses ordinary detection measures to see if you're spamming, flooding, phishing, whatever. If you do, the token gets blacklisted and you can no longer sign on to that service.
This isn't foolproof - you could still bribe random people on the street to be men/mules in the middle and do your flooding through them - but it's much harder than just spinning up ten thousand bots on a residential proxy.
The whole point is to prevent a robot from accessing the API. If you want to detect the robot based on its activity, you don't need to bother humans with the token in the first place: just monitor the activity.
This will always end with live video of the person requesting to log in to provide proof of life at the very least, and if they're lazy/want more data, they'll tie in their ID verification process to their video pipeline.
It's a solution to the "grandma died but we've been collecting her Social Security benefits anyway", or "my son stole my wallet with my ID & credit card", or (god forbid) "We incapacitated/killed this person to access their bank account using facial ID".
It's also a solution to the problem advertisers, investors and platforms face of 1) wanting huge piles of video training data for free and 2) determining that a user truly is a monetizable human being and not a freeloader bot using stolen/sold credentials.
I wouldn't expect the abuse rate to be higher than what it is for chip-and-pin debit cards. PKI failure modes are well understood and there are mitigations galore.
I wonder if they'd actually honor 1 instead of forcing recipients to be registered, as presumably they'd be interested in tracking user activity.
Mostly, it will because online identifies will be a market for lemons: there will be so many fake/expired/revoked identities being sold that the value of each one will be worth pennies, and that's not commensurate with the risk of someone commiting crimes and linking it to your government-registered identity.
If you sell your real-world identity to other people today, and they get arrested, then the police will know your identity (obviously). How does that work with a privacy-preserving scheme? If you sell your anonymous token that says that you are a human to a machine and the machine gets arrested, then the police won't be able to know who you are, right? That was the whole point of the privacy-preserving token.
I'm genuinely interested, I don't understand how it can work technically and be privacy-preserving.