Worldcoin is a new cryptocurrency project that has been making global headlines thanks to its bold vision of creating a global financial and identity network based on proof of personhood. The project is backed by some prominent figures in the tech industry, such as Sam Altman, the CEO of OpenAI, and Balaji Srinivasan, the former CTO of Coinbase. Worldcoin launched on Monday, July 24, 2023, after years of development and testing, and claims to have already signed up more than 2 million users during its beta phase. But what exactly is Worldcoin, and why is it generating so much buzz and controversy?
Worldcoin aims to provide a universal basic income (UBI) to every human being on the planet. UBI is a concept that proposes giving regular money to everyone from the government or an organization to meet their basic needs, regardless of their income or employment status. Worldcoin believes that UBI can help reduce poverty, inequality, and social unrest, especially in the era of artificial intelligence (AI), which may threaten many jobs and industries.
To achieve this goal, Worldcoin has developed a novel system of verifying users’ identity and humanity by scanning their eyes using a device called an Orb. The Orb is a spherical metal device that captures a high-resolution image of the user’s iris and other biometric data, and uses a cryptographic technique called zero-knowledge proof to generate a unique digital identity for the user without revealing any personal information. The user then receives a World ID, which allows them to access the Worldcoin network and claim their share of the Worldcoin tokens (WLD).
Worldcoin differs from other cryptocurrencies in several ways. First, it does not rely on a public blockchain or ledger to record transactions and balances. Instead, it uses a distributed hash table (DHT), which is a peer-to-peer network that stores data in a decentralized manner. Second, it does not use mining or staking to secure the network or create new tokens. Instead, it uses a consensus algorithm called Proof-of-Personhood (PoP), which requires users to periodically scan their eyes using an Orb to prove their uniqueness and eligibility. Third, it does not have a fixed supply or a predetermined inflation rate. Instead, it has a dynamic supply that adjusts according to the number of verified users and the demand for the token.
Security and privacy issues
Worldcoin claims to be privacy-preserving and secure, but it also raises some serious concerns about the collection, storage, and use of biometric data. Biometric data is sensitive personal information that can be used to identify or track individuals, and can also be subject to hacking, theft, or misuse. Worldcoin says that it does not store or transmit any biometric data from the Orb to any central server or authority, and that it only uses zero-knowledge proofs to generate World IDs. However, some experts have questioned the validity and robustness of this approach, and whether it can prevent potential attacks or leaks.
Moreover, some critics have accused Worldcoin of using deceptive marketing practices, exploiting vulnerable populations, and violating informed consent principles. For example, some reports have alleged that Worldcoin representatives have offered cash incentives, free gadgets, or false promises to lure people into scanning their eyes without explaining the purpose or consequences of doing so . Some have also claimed that Worldcoin has paid local officials or influencers to promote or facilitate its registration events . Some have also argued that Worldcoin’s consent form is vague, misleading, or incomplete .
Should you buy Worldcoin?
Worldcoin presents itself as an altruistic and innovative project that can benefit humanity and society at large. However, it also involves significant risks and uncertainties that should not be overlooked or ignored. Worldcoin is still in its early stages of development and adoption, and faces many technical, legal, regulatory, and ethical challenges. It also depends on the trustworthiness and competence of its founders, team members, investors, partners, and operators. It also competes with other cryptocurrencies and digital ID systems that already exist or are being developed.
Therefore, it is advisable for people to exercise caution and due diligence before rushing into Worldcoin. People should educate themselves about the project’s goals, methods, implications, and alternatives. They should also weigh the potential benefits and costs of participating in Worldcoin’s network. They should also be aware of their rights and responsibilities as users of Worldcoin’s services. They should also be prepared for possible changes or disruptions in Worldcoin’s operations or policies.
Worldcoin’s ultimate vision is to create a medium for implementing Universal Basic Income, especially now that AI is showing the potential of taking over all jobs. Worldcoin believes that UBI can help address the social and economic challenges posed by AI, such as unemployment, inequality, and instability. Worldcoin also hopes that UBI can enable people to pursue their passions, interests, and talents, and contribute to the common good.
Worldcoin’s approach to UBI is based on the idea of distributing a fixed amount of WLD tokens to every verified human on the planet, regardless of their location, income, or status. Worldcoin also plans to fund its UBI program by allocating a portion of its future profits from its AI Lab, which is a research and development arm that aims to create and commercialize breakthrough AI technologies. Worldcoin also intends to collaborate with other organizations and initiatives that support or promote UBI.
Worldcoin’s proposal for UBI is ambitious and visionary, but also controversial and experimental. It is not clear how feasible or effective it will be in practice, or how it will compare or interact with other existing or proposed UBI schemes. It is also not clear how Worldcoin will deal with the potential drawbacks or trade-offs of UBI, such as inflation, dependency, or disincentive. It is also not clear how Worldcoin will ensure the fairness, transparency, and accountability of its UBI system.
Worldcoin is a project that deserves attention and discussion, but also scrutiny and criticism. It is a project that may have a profound impact on the future of humanity and society, but also a project that may face many obstacles and uncertainties along the way. It is a project that may offer a new opportunity for global cooperation and inclusion, but also a project that may pose new challenges and risks for individual privacy and security.
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