>The best solution that I was able to come up with is using the service of a company for the identification part that deals with official papers
That's some sort of centralized authority which is opposite of decentralization... also you literally just recreated PKI =)
The problem is a complex one and I doubt anyone on this forum is going to solve it.
I agree that this is not a complete decentralized solution, like I said, I don't think a complete decentralized solution exists with current technology. However I don't think that using centralized authorities for specific goals is bad by definition, especially if there are no better solutions right now.
Also just to make it clear, obviously I didn't invent anything and I never claimed that. The point of this thread is not to create some revolutionary algorithm, just to discuss possible solutions in the currently available technology and hear other's people thoughts on this.
There isn't a way, because you can't prevent people working in collusion, or my registering as myself, my partner, the dog, and next door's cat.
Did you read the post? Of course you can prevent people from registering fake people if you involve centralized authorities. The whole point of this thread is to discuss if it's possible to achieve that without using centralized solutions, or if it's really that bad to use the help of a centralized companies to solve this problem.
I don't know what you mean by "people working in collusion", but I guess people could still register their relatives and friends. Would you however let someone you don't completely trust have control over your money? Most people wouldn't, so in worst case they would be able to register a few more times using their family. That is far better than current situation.