Re: " is not being challenged for our "papers"."
Birth registration happens soon after birth - usually is made by the hospital directly for babies born there. Otherwise it can be done at a town office - you need to present a certificate made by the physician or obstetrician who helped the birth, plus a proof of your identity as a parent. No need of a chip, and here, identity thieves are almost non-existent.
If you lose (or claim to have lost) your birth certificate, you will need to apply for a duplicate. The birth certificate contains no information that identifies who it was issued to. No fingerprints, no DNA, not even a photograph. I can get a "duplicate" birth certificate of just about anyone who is approximately the same age as myself, just by knowing their date of birth, and claiming to be that person. I can then use that birth certificate to apply for a driving licence and/or passport. While I believe that a check is now made to ensure that the birth certificate was not originally issued to someone who was later issued with a death certificate, you could still use the birth certificate of someone who you know does not already have a UK passport / driving licence.