In 2021, the crypto landscape was flooded with new projects daily, each boasting unique features and narratives. While recent discussions have centered around existing projects and their developments, such as the SEC’s stance on Ripple, advancements in AI, and the introduction of Bitcoin ETFs, a new contender has emerged: Worldcoin. This project has reignited the excitement we once felt, and by the end of this guide, you’ll be well-acquainted with what Worldcoin brings to the table.
What is Worldcoin?
Worldcoin’s resurgence can be attributed to its co-founder, Sam Altman, the esteemed CEO of OpenAI. Though the project has been around for two years, its public launch in July 2023 has thrust it back into the limelight. Worldcoin aspires to be a universal financial utility owned by everyone. As AI continues to evolve, Worldcoin envisions a future where AI not only generates wealth but also poses challenges, such as job displacement. Worldcoin aims to address these very challenges.
What is it Working on?
Worldcoin’s mission revolves around two pivotal concepts: establishing Proof of Personhood and implementing a Universal Basic Income (UBI). The former ensures that each individual’s rights, whether voting or resource allocations, are safeguarded from potential AI interference. Meanwhile, UBI promises everyone a basic standard of living, especially in a world where AI might dominate the job market.
How does Worldcoin Work?
To become a part of Worldcoin, users install an app that generates a unique set of keys. They then physically visit an “Orb” to undergo an iris scan. The user stares into the Orb’s camera and, at the same time, shows the Orb a QR code generated by their Worldcoin app, which contains their public key. The Orb then validates if the user is a real human, and if the user’s iris does not match the iris of any other user is stored in the system. Once verified, they’re granted a “World ID.” While the current system is centralized, Worldcoin has plans to transition to a decentralized model.
What is Proof of Personhood?
Proof of personhood is a system that guarantees each registered key is tied to a unique human. This concept is crucial for decentralized governance, ensuring that powerful entities do not manipulate rights and benefits. Current systems lean heavily on government-backed identities, but Worldcoin offers a more decentralized alternative.
Other Approaches?
There are two primary forms of proof of personhood: social-graph-based and biometric.
Social-graph-based proof of personhood relies on some form of vouching: if Tom, Eddie, and Macy are all verified humans, and they all say that Ben is a verified human, then Ben is probably also a verified human. Vouching is often enhanced with incentives: if Macy says that Ben is a human, but it turns out that he is not, then Macy and Ben may get penalized.
Biometric proof of personhood involves verifying a person’s physical or behavioral trait that distinguishes humans from bots and individual humans from each other. General biometric data can be video, photo, fingerprint, etc. Iris scan is obviously an advanced one.
Both forms and the data types have pros and cons in areas like privacy, accessibility, scalability, decentralization, security against fake people, etc. There is no right or wrong in picking or using which; it is just a matter of how you favor the advantages and manage the risks.
Why Iris? Not Face or Fingerprints?
Facial and fingerprint recognition, while common, are susceptible to changes and theft. In contrast, iris scans offer a consistent and secure biometric alternative, making them a preferred choice for Worldcoin.
Concerns of Worldcoin
While delving into the complexities of social-graph-based, general-biometric, and advanced biometrics might be extensive, focusing on the broader concerns surrounding Worldcoin might be simpler.
Privacy
Commonly used biometrics like facial recognition and fingerprints have, over time, become easy to breach, diminishing their privacy and security. The iris, a relatively new metric unchanging over time, stands out as unique and representative biometric data. However, uncertainties loom over this iris data’s software and hardware storage mechanisms. Given that this might be their first experience with iris scans for people like you and me, it’s crucial to approach this with caution and thorough consideration.
Accessibility
The widespread adoption of World ID is significantly constrained by the availability of the Orb. The project’s aim, anyone globally would gain access within a 5km radius of an Orb, seems to be a long-awaited vision.
Centralization
The Orb is a specifically designed and constructed hardware device to scan iris, as iris scanning is advanced biometric data. This specialization implies a dependency on a limited number of manufacturers capable of producing such devices. Consequently, even if the software aspect achieves complete decentralization, entities like the Worldcoin Foundation or other manufacturers might be physically capable of introducing system vulnerabilities, potentially leading to the creation of counterfeit human identities.
Security
The potential for phone hacks and coercion of users to scan their irises for someone else’s public key poses significant security threats. Ensuring that an individual’s registered public key corresponds to their iris remains challenging. The emergence of businesses trading in iris-scanned World IDs further underscores these security concerns. We can already see businesses selling iris-scanned World I.D.s.
Is it Worth a Try?
Innovation always comes with its set of uncertainties and opportunities. In the crypto world, early adopters often find themselves at an advantage. And these adventurers pave the way for development as they adopt new technologies. Currently, Worldcoin offers perks like the Genesis grant and weekly WLD token airdrops to its early users.
Final Thoughts
Choosing to engage with Worldcoin is a personal decision. What’s essential is understanding the rationale behind your choice. Worldcoin represents the fusion of cutting-edge hardware and concepts like zk-SNARK. Whether you opt to scan your iris or not, you now possess a deeper understanding of UBI, personal data security, and the challenges an A.I.-dominant world might present. Here’s to more groundbreaking projects in the future!
Austin Cheung | NEST®
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