Worldcoin Will Face Tough Questions On Its Ambitious Project

Per the experts, Sam Altman’s much-hyped crypto project Worldcoin is going through an identity crisis, as it fails to justify its classification. The crypto community failed to classify Worldcoin. Is it a crypto company, a biometric authentication firm, or is it working as a “human economic system?” A severe identity crisis for a revolutionary project.

What Exactly is Worldcoin?

OpenAI founders Sam Altman and Alex Blania launched the incredibly hyped Worldcoin on July 25, 2023 with an ambitious aim of a World ID program using iris scans. Users get their iris scanned in a device called the Orb and get a WLD token. The person also receives a digital passport, a concept that would differentiate humans from AI-generated content.

Tool for Humanity facilitates iris data collection and operates in Berlin and San Francisco. The beta version already has over 2 Million strong user base. The project wishes to install these centers or orbiting operations in 35 countries across 20, which should expand more in later phases.

The issuance of a digital passport, portrayed as a World ID, dedicated centers to collect biometric data, could be perceived as a divergence from decentralization. However, the issuance of the native token WLD provides a crypto connection, but it does not classify it as a dedicated crypto company.

Worldcoin claims the collected data will be safe and stored on the blockchain. The users would get a digital passport in return for their biometric information. This data collection classifies the project as a human economy system. While it is still early to classify it as one the project could create a category of its own. But presently, it remains without a category.

Vitalik Buterin is Concerned About Worldcoin

Worldcoin incorporates the Proof of Personhood (PoP) mechanism. PoP leverages the individual’s unique biological characteristics to create a robust digital identity. The blockchain will validate the person’s identity and even verify the digital identity associated with crypto tokens.

Vitalik Buterin shared his concerns over the data collection required to leverage the PoP mechanism. While the intention behind this is to establish a unique ID with the aim of preventing fraud, the method to collect the data is centralized and cumbersome, at least at the start.

Buterin feels that providing iris data is like releasing more information than required. For now, Worldcoin’s main feature is to separate humans from AI and verify that the user is a human, not a bot. Ethereum co-founder fears that if someone scanned the iris of a World ID holder, it could lead to scams.

He also feels that relying solely on the ‘Orb’ to collect data and building a business out of it might not be a good idea. The limited number of dedicated centers increases the possibility of centralization and will raise questions regarding the commitment to decentralization.

Experts feel that the new project somehow creates a human economic system. Meaning, it is trying to leverage the human population economically. It is still early to comment on that, but proper classification would mean that users would deal with the project that way.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing