Worldcoin is an ambitious cryptocurrency project co-founded by Sam Altman, the CEO of OpenAI. The project aims to build the "world’s largest identity and financial network" as a public good and bring "proof of personhood" to users globally. The goal is to address the issue of lack of legal identity or digitally verifiable one for an estimated 1 billion individuals worldwide, many in developing countries, and lack of access to a bank for over 1.7 billion adults, many in rural areas.
World ID: This is a decentralized, privacy-protected identity solution intended to bring “global proof of personhood to the internet.” It allows each user to prove that they are a unique individual, instead of bots that would misuse Worldcoin’s services and benefits granted to users. The World ID can be thought of as a “digital passport that lets you prove you are a unique and real person while remaining anonymous.” The data stored is protected by zero-knowledge technology, which enables it to be used to verify a user’s personhood, but without revealing their actual identity or their online habits to counterparties.
World App: This is Worldcoin’s mobile app, functioning like a stripped-down crypto wallet, with additional features tied to the user’s World ID. It supports wallet features, including sending and receiving tokens as well as the buying and selling of tokens. It also allows users to access Worldcoin’s related services, such as Worldcoin grants, which are payouts for users in eligible countries who are verified via World ID. These grants are seen as a form of fair and equal distribution to all World ID verified users and are paid out in Worldcoin’s token, WLD, which is currently not trading yet.
Worldcoin Token (WLD): This is the final piece of the puzzle. Within the World App, Worldcoin is the currency in which grants are currently issued. The WLD token is not currently trading. Beyond grants, Worldcoin will also be used for governance over the Worldcoin protocol to determine the direction and future of Worldcoin. The token can be expected to be integrated with the World App to be used as payments for specific services. Currently, Worldcoin is not intended to be distributed to citizens in the United States or any of the other restricted regions.
To get a World ID, a user can get verified only through Worldcoin Operators, using a device known as the Orb, a biometric imaging device which captures the user’s iris. Since an iris pattern is extremely hard to fake, this is used as Worldcoin’s chosen method of identity.
As of now, the project seems to be expanding at a rapid pace. Could this be the Bitcoin (BTC killer? Should you invest today, now?
Business Impacts:
As the Worldcoin project is still in its early stages, there is limited data available on its impact on society. The project has the potential to bring about a number of significant changes, particularly in terms of access to financial services and personal identity verification.
One of the key benefits that Worldcoin aims to deliver is universal access to the global economy. An estimated 1 billion people worldwide, many of whom are in developing countries, lack a legal or digitally verifiable identity, and over 1.7 billion adults do not have access to a bank. By providing a decentralized, privacy-protected identity solution, Worldcoin could potentially address these issues and facilitate greater financial inclusion.
The Worldcoin system is designed to provide proof of personhood and financial public goods simultaneously. The World ID, one of the key components of the Worldcoin system, is a digital identity that allows each user to prove that they are a unique individual, which could be particularly beneficial in distinguishing between bots and humans in the digital space.
Worldcoin's mobile app, known as the World App, functions like a basic crypto wallet and is tied to the user’s World ID. It supports wallet features, including sending and receiving tokens, as well as the buying and selling of tokens. The World App also offers Worldcoin grants to users in eligible countries who are verified via World ID. These grants, paid out in Worldcoin’s token (WLD), could potentially provide a source of income for individuals, particularly those who have been displaced by AI technologies.
Finally, the Worldcoin token (WLD) will be used for governance over the Worldcoin protocol, allowing users to have a say in the direction and future of Worldcoin. It can also be used as payment for specific services within the World App.
However, it's important to note that the Worldcoin project has also raised a number of concerns, particularly around privacy and security. The project's use of iris scanning for identity verification has been met with skepticism by some, and there are questions around how this biometric data will be stored and protected. Additionally, the impact of Worldcoin will largely depend on its adoption rate and the extent to which it is able to deliver on its promises.
As the project continues to develop, it will be important to monitor its progress and assess its impact on society. At this stage, the potential benefits and challenges associated with Worldcoin remain largely speculative.
