Worldcoin is a great blend of AI, cryptocurrency, and blockchain technology. Worldcoin has been the talk of every town since its official launch in July 2023.
But what comes along with this unique cryptocurrency? Is a digital revolution with its pros or just a utopian mirage, an unrealistic vision of a financial platform? Well, let us explore worldcoin further and find all answers to your questions.
What is Worldcoin?
Worldcoin is a new and unique version of cryptocurrency. It is a way of tackling the drawbacks associated with centralised identification systems in digital financial networks like any other cryptocurrency.
But what makes it unique is its proof-of-personhood solution in the emerging world of AI and bots. With a revolutionary collaboration of cryptocurrency, AI, and identity verification, it strives to authenticate the unique identity of users.
What is the principle of Worldcoin?
It works on the principle of biometric or iris identification for proof-of-personhood. It aims to prevent bot-generated spam and safeguard the user’s privacy over the digital landscape by creating a digital identity protocol to curb AI-generated content.
When the biometric verification system identifies each cryptocurrency user uniquely, the chances of a duplicate person or a bot taking unauthentic liberties depreciate. Hence, you get a financial ecosystem free of spam.
Working of Worldcoin
It comes with a well-organized system to give life to its proof-of-personhood approach. To scan the iris of individual users, hardware known as Orb will be distributed globally.
The hardware will be integrated with an app to scan and register the biometric as a unique, non-reproducible ID. The app has a master capability to convert the iris scan into a biometric representation of the unique identities.
Now, you might wonder where your iris scan goes and whether the Worldcoin system can misuse it. According to the worldcoin website, unless you sign in and retain it explicitly, your Orb scans are deleted after assigning you the unique individual code.
What are the elements of Worldcoin?
To further implement biometrics identity verification into cryptocurrency, Worldcoin provides several vital elements, such as World ID, WLD tokens, and the World App.
- World ID is the unique identity given to a user of Worldcoin after successful iris scans and verification.
- WLD tokens are digital assets distributed to Worldcoin users over the decentralised network.
- World App is the application built to carry out the processes associated with Worldcoin. With the help of the World App, you can generate a private and public key to interact with the Worldcoin ecosystem with utmost privacy and security.
To get your World ID, you need to register over the Worldcoin network using the Orb, which can be availed locally in many cities across the globe. Upon successful registration, you can use the Orb-verified World ID to connect to the Worldcoin network.
The World App allows you to make payments, purchases, and transfers with digital assets and traditional currencies. The Worldcoin ecosystem does not require users to get a World ID for using WLD tokens or World App. However, it provides the users with a World ID with some incentives in the form of free WLD tokens.
What do the statistics related to Worldcoin say?
The Worldcoin organization has distributed around 1500 Orbs in about 35 cities in 20 countries globally. Many users across the globe have shown immense interest in this unique cryptocurrency, taking the count of unique Ord-verified World IDs to around 2 million.
In response, it has also initiated the distribution of WLD tokens to many users across the globe. It allows users to registered users to claim one free WLD token every week. The Crypto exchange platform Coinbase reports that one WLD token’s price equals 0.75 rupees as of August 1, 2023.
Who launched worldcoin?
Now comes the question of who is the mastermind behind this revolutionary blend of AI, cryptocurrency, and identity verification. Well, it is the CEO of the OpenAI platform, Sam Altman. He is the co-founder of Worldcoin, with Alex Blania as the co-founder and CEO.
Worldcoin is an initiative of Tools for Humanity, a San Francisco and Berlin-based company to revolutionize the digital world. It strives to achieve it with the help of generative AI as a dystopian approach.
Drawbacks of Worldcoin
Worldcoin claims to possess various revolutionary possibilities associated with digital assets. It is open to all users across the globe, no matter the country, background, or economic status.
However, it has drawbacks, contradicting the idea behind a utopian mirage. Hence, before investing in WLD tokens, you must know about the limitations and risks associated with its protocol.
1. Security risks with the Orb
The Orb hardware itself is hard to rely on due to its inherent hardware system vulnerabilities. It is associated with numerous risks, such as data theft, identity leaks, fraudulent practices, and accuracy concerns. Hence, it may expose you to security risks.
2. The volatility of token price
No cryptocurrency has a stable market. Worldcoin, being a cryptocurrency, is also prone to substantial market fluctuations. Hence, it is necessary to have a deep take on the functioning of the cryptocurrency market before investing in it.
3. Manipulation risks
Fraudsters and cyber criminals always find their way of manipulating people. The same can be said about Worldcoin. Even if a user has a unique World ID, they can be manipulated by fraudsters to disclose it. Hence, there are chances of exploiting the loopholes of Worldcoin to generate multiple IDs.
4. Concerns about personal data privacy
As mentioned earlier, you may be worried about the biometric identification system of Worldcoin misusing your iris scans.
While the platform claims only to hash the iris scans and delete them instantly after the generation of World ID, the privacy risks still hang around the corner. Moreover, adding facial recognition features may also raise privacy and security concerns among users.
5. Centralization and open source issues
The main aim of it is to take the decentralised cryptocurrency system further. However, it is still partially centralised, with some components, like Orb’s firmware, being closed to public access.
Hence, though the Worldcoin protocol is open-sourced, decentralization is a long road for this unique cryptocurrency.
6. Regulatory uncertainty
It has come to construct a global protocol for engaging in digital platforms. But it also challenges many regulations and compliances of local jurisdictions globally. Hence, there are chances of local regulations affecting the operations of Worldcoin.
Conclusion
Worldcoin, a unique cryptocurrency based on biometric identification, is on the verge of transforming the digital world. While it may be considered dystopian and revolutionary, it also comes with numerous drawbacks questioning the privacy and security of users over the cryptocurrency network.
The grand project is still in its initial phases, but it remains to be found out if it is genuinely safeguarding users’ biometrics and curbing AI-generated content. However, exploring the characteristics and functioning of Worldcoin is crucial before making a big investment.