The recent buzz around Worldcoin, initiated by Sam Altman of OpenAI, has caused a stir controversy within the crypto community. The debate mainly revolves around Worldcoin's idea of providing a unique digital identity to validate real people over AI bots.
This 'World ID' based on zero-knowledge proofs has drawn criticism from key figures like CryptoQuant's CEO and Dogecoin's co-founder.
On July 25, CryptoQuant's CEO Ki Young Ju expressed worries on Twitter about the exclusion of the U.S. populace from Worldcoin's iris scanning scheme, which is supposed to establish a digital identity. Orb that scans the iris.
Ki Young Ju also questioned the need for a new cryptocurrency to supplant Bitcoin, tagging Worldcoin as fraudulent due to its lack of practical applications and unclear tokenomics.
Global Privacy?
Billy Markus, Dogecoin's co-founder, didn't share the same degree of opposition as Ki Young Ju but remarked that Worldcoin seemed 'creepy and odd.'
His remark was a reply to Jack Dorsey’s tweet. The former Twitter CEO humorously alluded to the Orb with, 'Visit the Orb or the Orb will visit you...'
To counter the backlash, Worldcoin defended its 'World ID' proposition, stating iris scanning is fundamental for affirming human identities, preventing bot infiltration, and securing the network.
The firm assured that iris data won't be used for digital wallet management or transactions, trying to ally privacy concerns.
A number of crypto analysts echo the sentiment. Worldcoin's tech hasn't seen extensive testing and uptake, leaving questions about its practicability. Worries about the privacy and dependability of its biometric tech are surfacing.
Although they claim not to tie biometric data to the Orb and generate a localized irreversible one-way IrisHash, privacy issues persist. Plus, the Proof of Personhood may sometimes fail to confirm the account matches the user, questioning the initiative’s efficacy in ID verification.
Spearheaded by Sam Altman, known for OpenAI and ChatGPT, Worldcoin aspires to reconcile economic incentives with human identity using Proof of Personhood to separate humans from bots.
From A Bad Novel
The Orb, a compact silver spherical device, is crucial in scanning eyes to create a unique 'World ID.'
Worldcoin's project includes a spherical scanner for irises to create personal identifiers. This initiative aims to distribute complimentary tokens to qualified users in various countries, extending financial services globally.
Despite still being in beta, nearly 2 million have signed up, mostly providing biometric data in the Southern Hemisphere, with backing from 25 countries such as France, Indonesia, Sudan, and Chile.
Debates ignited with Worldcoin’s debut in 2021. Two years later, in May 2023, after obtaining $115 million from investors like Blockchain Capital and a16z, the project made a comeback.
Recently, Worldcoin Foundation announced its shift to the Optimism ecosystem. Users have already started engaging on the Optimism Superchain, marking significant expansion strides in the Web3 setting.
Worldcoin's token, WLD, is now on major exchanges like Binance. Out of the total 10 billion supply, 8 billion was freely distributed globally, while the remaining tokens are reserved for the Worldcoin Foundation and its investors.
