Roots Name and picture from twetch — not on-chain. The signature is; the profile is not.

Truly, it really does not matter if you have a small block size decentralisation and scale on L2. Customers does not care about centralisation of a network. Customers only care about cheap transaction fees, convenience, utility (solving their problem) and simplicity. Multiple coins wouldn't work either, the economics simply doesn't align.

If I'm a boomer with less understanding of tech. I don't want to open a channel to transact Bitcoin, like what even is that. I don't want to lose my money sending to wrong address on different layer. I don't want to create my own node and secure my own data.
I don't want to be a store that accept multiple currencies like ETH, ADA, SOL, XRP and my profit fluctuate every time. It's prone to manipulation, loss, security risks so much possibility we could never think of.

Security will come only after we solved simplicity, utility and cheap fees. Because then it is very profitable to build a server farm. Then, we will have achieved decentralisation if the free market realise the incentives to build server farm.

Having a secure safe without items in it is useless. It's only having lots of value that you need security. No one wants to steal random stones at the public park. The decentralisation mentality of cryptocurrency community like this, securing garbage and say garbage is the future of money. Hence, decentralisation will come only at last.

There can only be one coin, if not few. Hyperbitcoinization will make everybody prosper. It is when inequality (exchange rate) is solved and Proof-of-Work will become the cornerstone of civilization.

Here is why identity matters.

A little background, the internet is the most inclusive system of all civilization we have today. It transcends the limitation of countries border. Today, almost everybody interact internationally, but in the real world, we still have to obey the laws of our own country. This has been the weird phenomena about the world, that there are walled garden everywhere that restricts the local movement and yet we are exchanging information globally. The distinction is, we trust everything the country (authority) gives us whether they are true or false, but they are valid.

Now we will do some thinking on how Blockchain can transform our structure.

With Blockchain, one can imagine it as data being as in the perspective of countries (network).

How do we differentiate whether ones data is reliable? When we travel to overseas, we just assumed the currency given to us is valid.

Again, apply it to Blockchain. Even though we have multiple chains that are "decentralised" that have consistently verified data that the majority thinks is true.

Is it really true, with the absence of identity? Think about it, today I can copy/download and create the same image (NFTs) on other chain and that chain will prove that it's sign, therefore valid. Do I now own the NFTs? Technically, yes. But can I copy ChampionsTCG's Doge card .PNG file and use it in the game? No. Do I really own the Doge card? No. Therefore, false but valid.

How do we know whether ones ownership is true even though it's valid? With identity. This is critical to think about, what Satoshi meant by "Bitcoin is a predicate system". I am sure you can come to your conclusion by now.