Global identity via iris scans for financial inclusion, but privacy, centralization, and security concerns persist. Monitoring its impact.
I've been reading about Worldcoin lately, and I'm still not sure what to think. On the one hand, the project has some ambitious goals, such as creating a global identity system and financial framework that is more inclusive and privacy-preserving. On the other hand, there are some serious concerns about the project's privacy implications, its centralization, and its security. Basically, I’m perplexed by worldcoin.
If I’m perplexed by this idea, I simply cannot be the only one. Let’s work through the idea of Worldcoin together.
What is Worldcoin?
Worldcoin is a project founded in part by Sam Altman, the CEO of OpenAI. This project was created as a part of Altman’s company, Tools for Humanity. Worldcoin was created as a part of its mission of enabling universal access to the global economy by building the world’s largest identity and financial public utility. Here’s what that means. The project's goal is to create a global identity system that is based on people's iris scans. The idea behind the iris scan seems to be because biometrics can be a more solid metric for proof of personhood than other methods.
When I speak of ‘proof of personhood’, I am speaking of the ways that people are proposing to verify the humanity of users on the internet in a world that spends the majority of its time online, and web3 enabled landscapes specifically. To define its spin on proof of personhood, Worldcoin has developed a device called the Orb, which scans people's irises and generates a unique identifier called an IrisCode.
People who have their irises scanned are then given a WorldID based on the data compiled from the iris scan, which they can use to access financial services and other benefits. Users are able to use their World ID for financial, governance-related, and other benefits by uploading their WorldID to the World. App. The cost of the iris scan is $15 dollars, and it is only available in select areas across the World. The World App is free to use.
The Pros and Cons of Worldcoin
Looking at Worldcoin from a surface level perspective helps us realize that there are benefits to this project. Any idea that can connect more people to financial avenues is a good thing, that is, at face value. The project could help to improve financial inclusion by making it easier for people who don't have traditional forms of identification to access financial services. Second, Worldcoin could help to protect people's privacy by making it more difficult for criminals to steal their identities. Third, Worldcoin could help to create a more efficient and transparent financial system.
However, there are also some potential concerns about Worldcoin. First, the project raises serious privacy concerns. By scanning people's irises, Worldcoin could collect a significant amount of personal data about them. This data could then be used to track people's movements, identify them, or even impersonate them. AI assisted impersonation can be considered a major issue with AI related content similar to Altman’s other project, ChatGPT.
Second, for those who scan their irises to obtain a WorldID, a Worldcoin Airdrop will gift them with 25 $WRLD, the company’s native token. The tokenomics around who exactly was gifted does not expand further past those who had previously scanned their irises being a part of a “Genesis Grant”.
This vague utility behind the token led to the volatile swings of the launch price, with the majority of the launch tokens coming from loans of the token to Market Makers carrying the weight of the token launch.
Another concern is that Worldcoin is a centralized project, even though the claim by the project is that it’s designed to be decentralized. With Tools for Humanity essentially being the company that has designed Worldcoin, it is controlled by a small group of people. This could make it vulnerable to corruption or abuse. Third, there have been some security concerns raised about Worldcoin's technology. For example, investigations have shown that there is a possibility that the technology behind Worldcoin is all but problematic.
It’s a hard sell to get people to give up such an important part of their well being, their biometrics, to a seemingly unknown company, with unknown motives. As stated above, that data can lead to devastating consequences should it fall into the wrong hands.
Conclusion
Overall, Worldcoin is a complex project with both potential benefits and risks. Like many collectives, protocols, DAOs, and other Web3 units, it is important to consider the intent behind the idea. It remains to be seen whether the project will be able to overcome its challenges and achieve its goals. However, the project is worth watching, as it could have a significant impact on the future of identity and finance.
Additional Thoughts
So far, I’ve done my fair share of babbling, but I have some more things to consider. In addition to the points I've already mentioned, here are a few other things to think about when considering Worldcoin:
The project's relationship with OpenAI. OpenAI is a non-profit research company that is dedicated to the safe and ethical development of artificial intelligence. However, OpenAI has also been criticized for its ties to the military-industrial complex. This raises questions about whether Worldcoin could be used for surveillance or other nefarious purposes.
The project's target market. Worldcoin is currently targeting people in developing countries. This raises concerns about exploitation, as people in these countries may be more likely to agree to have their irises scanned in exchange for financial rewards.
The project's long-term sustainability. It is unclear how Worldcoin will be able to sustain itself financially in the long term. The project's founders have said that they plan to generate revenue from fees and advertising. However, it is possible that these revenue streams will not be enough to cover the project's costs.
Sam Altman’s connection with companies including FTX: It is known that the company had a connection with the CEO of FTX, Sam Bankman-Fried via capital raises in the past. The “world ruler” vibes are fairly strong, and fairly problematic, even though Sam Bankman Fried is not the crypto world ruler he once was considered to be.
Overall, Worldcoin is a project with both potential benefits and risks. It remains to be seen whether the project will be able to overcome its challenges and achieve its goals. However, the project is worth watching, as it could have a significant impact on the future of identity and finance.