Decentralization has the benefit of minimizing the possibility of a tyrannical federal government, by design.

This is a step in the wrong direction, at a time when the tyranny is no longer hypothetical.

Estonia's national ID system is decentralized via the X-Road system, no one entity can see all your records in one place. For example health records live in one database, police in another etc. It is also difficult to cross correlate or to erase history due to Estonia also using a blockchain.