66. What is WorldCoin? Everything you need to know about this cryptocurrency!

Recent times have shown that artificial intelligence (AI) is developing at a dizzying pace. It brings with it many advantages, such as saving time. Despite its advantages, it also has many disadvantages. It poses risks and challenges that we need to address as it evolves.

Behind the development of artificial intelligence is also the development of cryptocurrencies, which are supported by it. This is how Worldcoin was born – a new project that offers a unique identification method.

It was introduced to the world on 24 July 2023. Its creator is OpenAI CEO Sam Altman. At its launch, the eyes of the whole world were on it. Literally.

What is WorldCoin? Definition.

Sam Altman, Alex Blan and Max Novendstern are the inventors of Worldcoin and the online platform of the same name. It combines cryptocurrencies, artificial intelligence and blockchain in a single open-source protocol. The project, which took two years to develop, consists of three parts:

• A unique digital identity for global use (World ID).
• A decentralised, global currency – Worldcoin.
• An app designed for payments, transfers, and purchases that we can make using cryptocurrencies or traditional currencies.

Worldcoin’s premise is a little different from well-known market leaders like Bitcoin or Ethereum. The token is meant to be a kind of basic income that gives people fair access to the global economy. You get it without having to invest any money.

So what does one have to do to get hold of a Worldcoin? To obtain a token, people who register on the Worldcoin platform have to scan their iris. This is done with a spherical device that replicates the human eye. According to the creators, this is the only way to ensure that everyone who registers is a human and not a bot. This is known as the World ID. Is this approach ethical? It is not for us to judge.

The World ID is designed to combat income inequality around the world. It proves that someone is an individual and not a bot or artificial intelligence (AI).

How does Worldcoin work?

A token is a cryptocurrency, but it is different from popular currencies. It does not require any investment funds from us. To receive a cryptocurrency, we need to scan our iris with a device called an Orb. This confirms whether we are a person or a machine.

Why the iris of the eye? Because the iris is different in every person, just like a fingerprint. The Orb uses its structure to generate a special identification code that serves as a code for the person. It is then stored on the decentralised Worldcoin blockchain so that others cannot replicate the code. Each scan is anonymous.

As promised, the Orb does not store biometric data. Instead, it stores what is known as the iris hash – a series of generated numbers designed to identify a person based on their scan. Once a person receives their Iris Hash and connects to the cryptocurrency wallet, they receive a World Id.

World ID works like a digital passport. It preserves privacy and protects users from cyberattacks on their identities.

At the time of writing, there are Orb centres in 35 different countries around the world.

How do you get a Worldcoin (WLD) cryptocurrency?

The whole process is done in three simple steps:

1. Right at the beginning, we need to download the Worldcoin app. We create our account and set up a cryptocurrency wallet called Wallet Connect. Besides WLD, we can also store other cryptocurrencies on it. WalletConnect also works with social media apps like X (formerly: Twitter).
2. We log on to a World ID. Although we can also use the World App without a World ID, we do not receive free tokens this way. To do this, we have to scan our iris with Orb and verify our identity.
3. We enter the unique code we receive and receive free cryptocurrencies.

Worldcoin (WLD) is an ERC-20 token based on Ethereum. Before its official launch, it was transitioned to the OP core network. This transition means that the Worldcoin protocol, which is based on Ethereum, has bridges to Optimism and Polygon.

In the beta phase, WLD was only available to users who had scanned their iris. In addition, Orb operators are also rewarded with tokens.

The WLD supply is limited to 10 billion tokens for a period of 15 years. At the end of this period, the Worldcoin Protocol Management Committee will decide whether to increase the token supply and whether new tokens will be minted.

The combination of tokens and World ID will play a major role in protocol management. Users are expected to actively participate in shaping the future of the ecosystem.

User privacy in the project

According to Worldcoin, the project is completely secure and confidential. Biometric data is erased or stored in an encrypted format. Such assurances do not reassure regulators, who express their concerns about the platform’s data collection. One fear is that iris scans could be available on the black market, allowing cybercriminals to gain access to Worldcoin user accounts.

This is not the end of criticism and negative interpretations of the project. The MIT Technology Review shared concerns about Worldcoin’s data collection in developing countries such as Indonesia and Kenya. An investigation found that Worldcoin used unethical marketing practises and collected more data than it admitted.

In addition, the Gizmo report found that people originating from China are buying iris scans on the black market to gain access to Worldcoin in beta.

Despite the fact that the company has already registered thousands of iris scans, it has not yet announced its abolition, despite its assurances.

Summary

The project is certainly an innovation that has entered the market. It attempts to use artificial intelligence (AI) in a ‘bona fide’ way. In the future, Worldcoin plans to allow other organisations to use its scanning technology. Worldcoin’s idea is to prevent fraud and scams. In the age of artificial intelligence and human-like bots, Worldcoin could be a great tool to distinguish between bots and humans.

But are they really? Both rights advocates and regulators have different opinions on this. It is not without reason that Worldcoin has been banned in some countries due to the security vulnerabilities that have been discovered.