It can and should massively upend government ID databases.

I recently had to send in 8 birth certificates and 2 marriage certificates for a passport application for my teenage son. 2 of these certificates needed new copies ordering first.

Had all these pieces of ID existed as NFTs on a government-backed blockchain not only would I not have needed to post or get new copies of anything but the passport could have been minted and returned for integration as a digital asset into a wallet app the same day.

With Zero Knowledge exchange I wouldn't have even needed to reveal any potentially revealing information to the people processing the application.

There is a perfect example of how blockchain technology and cryptography can massively speed up beurocracy.