Worldcoin

Worldcoin, a novel cryptocurrency project founded by Sam Altman, the CEO of OpenAI, was launched in 2023. The project aims to address the growing challenge of distinguishing human beings from AI in the digital realm by using artificial intelligence and biometrics to verify users' identities through iris scanning. Here is a brief overview of the history of Worldcoin:

• 2019: Worldcoin was founded by Sam Altman, Max Novendstern, and Alex Blania. The project is developed by Tools for Humanity, a company based in San Francisco and Berlin.

• 2021: The company stated that its token (WLD) is intended to drive a more unified and equitable global economy. The token is a Layer 2 Ethereum-based cryptocurrency that leverages the security of the Ethereum blockchain while having its own economy. In October 2021, the project raised an initial $25 million, followed by an additional $100 million within six months, pushing the token's value up to $3 billion.

• April 2022: A report from MIT Technology Review raised concerns about the ethics of Worldcoin's data collection during its beta phase, accusing the project of targeting lower-income communities.

• May 2023: Hackers stole login credentials of several Worldcoin operators' personal devices, but no personal user data was compromised. Further funding of $115 million was announced to invest in bot detection, research and development, and expanding the Worldcoin project and application.

• July 24, 2023: Worldcoin launched out of beta with 11 orb locations in the U.S. and plans for 35 cities in 20 countries. Users in London received 25 WLD tokens for scanning their irises. WLD tokens became freely tradable on several cryptocurrency exchanges, though not in the U.S.

• 2024: Worldcoin continues to expand its operations, with several top crypto exchange platforms listing WLD, including Binance, Huobi, Bybit, and OKX. The token's price increased by 60% following its listing on these exchanges.

Worldcoin (WLD) is a revolutionary cryptocurrency project that aims to create a global financial and identity network using AI and biometric identification technology. It seeks to address income inequality by providing a unique digital identity, known as the World ID, which proves that someone is a person and not a bot or AI. Here's how it works:

To get Worldcoin, individuals need to scan their eyes through a sphere-shaped device called the Orb. The Orb is a custom, state-of-the-art device that privately and securely verifies humanness and uniqueness using an iris code. The iris structure of the subject's eyes is used to generate a special identifying code that serves as the person's unique identifier. This code is then saved on the Worldcoin decentralized blockchain to prevent others from replicating the code. The scans are anonymized so they cannot be traced back to the individual after the identifier is created.

The Orb does not store biometric data but keeps an IrisHash, which is a set of generated numbers to identify the person based on their scan. After a person receives their IrisHash and crypto wallet, they get their World ID or digital passport. This digital passport is designed to let users prove they are unique and human on the internet while keeping their identity private.

To access Worldcoin, users need to download the World App, which is a fully self-custodial app built and operated by Tools for Humanity. The World App enables users to set up their Worldcoin account, hold and verify their World ID, and access a digital wallet connected to digital and traditional currencies. The app is available for both iOS and Android devices.

Worldcoin has a fixed total supply of 10 billion WLD tokens for the first 15 years. Post this period, an inflation rate of up to 1.5% could be introduced. The initial circulating supply was valued at approximately $219 million across 106 million WLD tokens. The distribution includes 75% allocated to the community and 25% to the initial team, investors, and a reserve. Market makers received loans of WLD, which influence the token's market presence and price stability.

Verifying your World ID at an Orb location allows you to prove that you are human and unique in a growing number of integrated applications like Discord, Shopify, Telegram, and Reddit. World ID verification locations are managed by Worldcoin Operators and can be found on the Worldcoin website or in World App.

Worldcoin is supported by multiple project contributors, including the Worldcoin Foundation and Tools for Humanity. The Worldcoin Foundation is a non-profit organization setup to support and grow the Worldcoin community until it becomes self-sufficient. Tools for Humanity (TFH) is a global technology company established to accelerate the transition towards a more just economic system. It led the initial development of Worldcoin and continues to build tools and help support the protocol.

Overall, Worldcoin aims to create a global economy for all, regardless of country or economic status, by providing a unique digital identity and a decentralized payment protocol.

Worldcoin (WLD) has several strengths that contribute to its potential success and adoption:

1. Decentralized Governance: Worldcoin is designed to be decentralized, meaning that its supervision and decision-making processes will ultimately rest with its global community of users. This decentralized structure allows for community-driven governance and decision-making.

2. Proof of Personhood: Worldcoin's "proof of personhood" mechanism, which uses iris scanning to verify human identity, helps to prevent fraudulent activities and ensures that only unique individuals can participate in the network. This feature is particularly important in the era of advanced artificial intelligence, where distinguishing between human and AI-generated content is increasingly challenging.

3. Experienced Team: The team behind Worldcoin includes well-experienced individuals, such as Sam Altman, who is also the CEO of OpenAI. This experienced leadership gives Worldcoin a strong foundation and increases its chances of success.

4. Global Accessibility: Worldcoin aims to provide universal access to a decentralized financial infrastructure, enabling instant, borderless financial transactions. This global reach can foster economic opportunities and empower democratic processes worldwide.

5. Security and Privacy: Worldcoin's digital identity system, World ID, is designed to be privacy-preserving, ensuring that users' identities are protected while still allowing them to verify their humanity online. This focus on security and privacy helps to build trust in the platform.

6. Inclusivity: Worldcoin's token, WLD, is designed to be inclusive, granting access to a wide range of users. The token can be used for various purposes, including governance, authentication, and rewards for operators.

These strengths position Worldcoin as a promising project that addresses significant challenges in the digital age, such as identity verification and decentralized governance.

Worldcoin (WLD) faces several risks and criticisms, primarily related to privacy, security, and centralization. Here are the key concerns:

• Biometric Data: Worldcoin's iris-scanning technology raises significant privacy concerns. The collection and storage of biometric data, even in hashed form, pose risks of misuse or data breaches.
• Personal Information: The system requires users to provide personal information, which could be vulnerable to unauthorized access or exploitation.

• Phone Hacking: Users' phones could be hacked, allowing unauthorized access to biometric data and compromising security.
• Coercion and Identity Theft: There is a risk of coercion into scanning irises for someone else or selling or renting IDs, which could lead to identity theft.
• Fake Identities: The use of 3D-printed "fake people" to dupe the scan for World IDs is another security concern.

• Governance and Proprietary Algorithms: Worldcoin's governance and proprietary algorithms are seen as centralization concerns, although the company has committed to decentralizing over time.
• Backdoors: The integrity of Worldcoin's Orb hardware device construction cannot be fully verified, leaving the possibility of backdoors or fake human identities being created.

• Physical Access: Users need to physically access a Worldcoin Orb to participate, which could limit the project's reach and create an imbalance in Worldcoin distribution favoring urban centers.

• Inflation Rate: Worldcoin's whitepaper proposes an annual inflation rate of 1.5%, which could be seen as a tax on existing token holders.
• Regulatory Scrutiny: Worldcoin is under regulatory scrutiny, with governments and organizations like EPIC expressing concerns over privacy and data handling practices.

• Sam Altman: Founder and CEO of OpenAI, also the founder of Worldcoin. He aims to use Worldcoin to fund universal basic income (UBI) initiatives.
• Alex Blania: Co-founder and CEO of Tools for Humanity, the company behind Worldcoin. He has emphasized the need for proof of personhood in the age of AI and has been involved in the project's development and security measures.
• Tiago Sada: Head of product for Tools for Humanity, overseeing the development of Worldcoin. He has a background in robotics and has been instrumental in the project's technical aspects.