In the increasingly massive internet use, the expansion of bots and the lack of accurate human verification is a major, unavoidable problem. Bots have become a common problem on many websites and apps, causing spam, fraud, and compromised security. Worldcoin is attempting to address this with its advanced yet controversial technology. This article will explore what Worldcoin is and how it works, which has led to some arguments.
Article Summary
- 🌏 Worldcoin is a digital identification platform that uses eye-scanning technology to create a worldwide financial and user identity network based on blockchain technology.
- 👁️ Worldcoin utilizes the proof-of-personhood (PoP) method with a device called The Orb to verify user identity.
- 🤖 The Worldcoin project was created by Sam Altman, CEO of OpenAI, along with Max Novendstern and Alex Blania. Tools for Humanity (TFH), the company behind Worldcoin, raised 115 million US dollars in Series C funding in May 2023.
- 🪙 Worldcoin has three main components: World ID, World App, and the WLD token. WLD is the utility and governance token on the Worldcoin platform.
What is Worldcoin (WLD)?
Worldcoin is a digital identification platform that uses biometric data, specifically eye scanning. This platform aims to create a worldwide financial and user identity network based on blockchain technology.
With the development of artificial intelligence (AI) technology, it provides an easy way for people to verify that they are real people, not bots or AI algorithms.
This platform verifies a user’s identity using the proof-of-personhood (PoP) method. This method involves eye scanning using a device called The Orb.
“Proof of personhood” is one of the core ideas behind Worldcoin, and refers to establishing an individual is both human and unique. Once established, it gives the individual the ability to assert they are a real person and different from another real person without having to reveal their real-world identity.
Besides PoP, you can also learn about What is Proof-of-stake (PoS)?
Worldcoin was created by Sam Altman, CEO of OpenAI, a ChatGPT development company, with Max Novendstern and Alex Blania. Tools for Humanity (TFH) is the company behind Worldcoin.
Tools for Humanity raised 115 million US dollars in Series C funding in May 2023. Blockchain Capital led the funding with participation from a16z, Bain Capital Crypto, and Distributed Global.
In building a financial network on the blockchain, Worldcoin created the WLD crypto asset. WLD is an ERC-20 token that serves as the utility and governance token of the platform.
How Does Worldcoin Work?
Three important components work together in the Worldcoin platform: the World ID, the World App, and the WLD token.
- World ID: The identity of the user that results from eye scanning.
- World App: A smartphone application that connects the World ID and WLD token, which functions similarly to a crypto wallet with some additional features.
- WLD Token: Worldcoin platform token.
World ID is used to confirm a person’s identity by scanning their eyes using an iris scanning device called The Orb. It is done because each eye has a unique pattern, like a fingerprint, so each person has a different IrisCode.
After eye scanning, users will get a unique IrisCode that is personally attached to their World ID. It ensures identity security, as only the user can access their ID.
The World ID is stored on the blockchain and can be accessed through the World App, which serves as a digital wallet for storing assets such as fiat currency, crypto, and the user’s World ID.
After receiving a World ID, users can claim rewards of 25 WLD tokens (Worldcoin Grants) stored on the World App.
Users utilize WLD tokens to engage with applications that align with the platform’s compatibility. Early adopters received the majority of WLD tokens, and obtaining a World ID through eye-scanning has garnered attention from individuals in different countries, Indonesia included.
To verify identity using The Orb, Worldcoin offers services to anyone to become an Orb operator. Worldcoin delivers The Orb and gives Orb operators the freedom to run operations and marketing.
How to Verify Identity on Worldcoin?
In Worldcoin’s identity verification system, users can get a World ID verified through the Worldcoin Operator using The Orb. This platform chose this method because iris patterns are difficult to forge, thus proving that one person does not register for multiple World IDs.
This verification is done directly with the World App, without requiring personal information such as e-mail or name, making the World ID a pseudonymous form of identification.
Here’s how to complete the verification:
- Download the World App on the App Store or Google Play Store.
- Because eye scanning requires manual intervention, users must personally visit a functioning Orb operator.
- After successful eye scanning and verification, users will receive a private key in the form of a World ID.
Users can check the schedule on the official Worldcoin website to see the availability of Orbs in operation.
With the launch of Worldcoin, Sam Altman aims for identity verification to reach 2 billion users, but logistical and verification challenges still need to be overcome. To address these issues, the team is actively recruiting Orb operators in various locations and has already produced 2,000 Orbs.
How to Become an Orb Operator?
In addition to participating, anyone can take on the role of an Orb operator. By assuming this role, users can earn rewards for each individual they enroll using the Orb. They can also establish their team, manage operations, and assist in promoting the adoption of Worldcoin.
To become an Orb operator, users can follow these steps:
- Apply through the official Worldcoin website.
- The next step is an online interview with the Worldcoin team if selected.
- After that, the user will be given training on the knowledge and working of The Orb. The Worldcoin team will then send The Orb device to the users’ place.
- After receiving The Orb device, users can start operating it.
WLD Tokenomics
WLD is a platform token officially launched on July 24, 2023. This token operates on the Ethereum mainnet and uses the ERC-20 standard for transactions and interactions on the Ethereum network.
To receive WLD rewards for identity verification and most transactions, Worldcoin uses Ethereum’s layer 2 blockchain, Optimism.
On July 24, 2023, Worldcoin launched the WLD tokenomics after the launch of its mainnet on the same date. WLD has a maximum supply of 10 billion tokens.
From the diagram above, you can see that the team allocates WLD tokens mainly to the community at 75%. Followed by Tools for Humanity investors at 13.5%, the initial development team at 9.8%, and Tools for Humanity reserves at 1.7%.
Before WLD’s launch, the allocation of 7,5 billion tokens intended for users was minted, but most of those tokens will be unlocked gradually over 15 years.
During the launch, the maximum supply of WLD tokens in circulation was 143 million WLD tokens, with 43 million allocated for verified users and another 100 million lent to market makers outside the US.
US residents cannot access the WLD tokenomics web as WLD tokens are not currently available in the US. This limitation comes as regulators in the US are getting stricter in supervising digital assets due to concerns about fraud and speculative trading.
Criticism of Worldcoin (WLD)
This project has received much criticism due to its ambitious goals and controversial methods.
After its launch, Vitalik Buterin, the founder of Ethereum, expressed his concerns about this project in a blog post. He was concerned that iris scanning could collect more information than the company allowed. This could be used to assess a person’s identity.
In addition, an article in the MIT Technology Review in April 2022 also stated that Worldcoin uses misleading marketing practices. It also allegedly collects more personal data than it acknowledges and does not get user consent.
Worldcoin issued a rebuttal to the criticism stating that they are not a data company and do not transfer or sell users’ data. They are only interested in the uniqueness of users and not their identity.
The project has also been criticized for its extensive promotion in developing countries, with most new users coming from Asia and Africa. It raised concerns about exploitation.
As of early August 2023, the Kenyan government has suspended the local activities of the Worldcoin project in the collection of biometric data of Kenyan residents. The Kenyan government considered a potential risk to public safety.
According to Bitcoin News, suspending Worldcoin’s activities in East Africa is one of the most direct actions regulators have taken.
Read also: Exploring Asia’s Potential as a Crypto Hub.
Conclusion
Worldcoin has the potential to revolutionize the future of crypto assets. While the project is still in its early stages, its future success remains uncertain and cannot be definitively predicted.
The project has some interesting potential implications for the crypto industry in the future. However, to invest in WLD assets, you must do more research considering the price fluctuations. And also project risks that you should consider.
References
- Worldcoin Team, A New Identity and Financial Network, Whitepaper, accessed 3 Agustus 2023.
- Benjamin Curry, Worldcoin: The Cryptocurrency That Wants To Scan Your Eyeballs, Forbes, accessed 3 Agustus 2023.
- 0xkira, What Is Worldcoin? Iris-Scanning Crypto Project Founded by OpenAI CEO Sam Altman, Coinmarketcap, accessed 4 Agustus 2023.
- Hanum Dewi, Worldcoin (WLD) Buatan Bos ChatGPT: Scan Mata Dapat Crypto Gratis? Be in Crypto, accessed 4 Agustus 2023.
- Sjuul | AltCryptoGems, A Thread about Worldcoin, Twitter, accessed 4 Agustus 2023.
- Worldcoinn Team, How The Work Launch, Whitepaper, accessed 4 Agustus 2023.