> With blockchain, users can maintain a consistent identity across the metaverse simply by verifying their wallet address, which nobody else would have access to.

This can be done with boring old encryption keys and signatures, not stupid blockchain needed. Even then it doesn't solve the avatar problem. If I make an avatar that looks just like someone else (or their avatar) it doesn't matter if people can verify someone's identity. I can effectively impersonate anyone I want if I can freely adjust an avatar. Unless you can manage to create a truly effective "avatar hash" there's no way to keep me from using someone else's model.