Here is all you need to know about Worldcoin; the proof of personhood project

A blockchain project cofounded by OpenAI CEO Sam Altman, Worldcoin, was launched on Monday and, within a short while, has split opinions from within the crypto space and beyond.

Some believe the project is ambitious considering the current realities, while some think it is creepy and dystopian. 

Away from all those controversial takes. What is the Worldcoin project? What does it set out to do, and how does it affect you? Let’s take a look.

What is Worldcoin?

Worldcoin describes itself as a digital passport that can help holders prove they are human. According to its whitepaper, paramount to WorldCoin is the “Proof of personhood” concept.

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This refers to establishing that an individual is both human and unique, and this will be achieved through the privacy-centric digital identity called World ID. This World ID and the native token WLD can be acquired through simple verification of being a genuine human being. 

Worldcoin is accessible through The World App, a wallet which facilitates obtaining World ID and WLD through biometric verification using The Orb, a device that scans users’ irises while ensuring complete privacy. 

According to the developers, the project does not store the data provided by the users. It generates a zero-knowledge proof to verify that the user is human without revealing the data used to create the proof.

The WorldCoin project was first launched on March 14, along with a waitlist for its software development kit.  On May 8, the project released its gas-free crypto wallet for verified humans, allowing users to take advantage of gas-free transfers by registering for a World ID, where they would be asked to provide a phone number or an iris scan.

On May 25, the project secured a $115 million funding round, and on July 14, Worldcoin announced that it had recorded over 2 million sign-ups. During its token and mainnet launch on Monday, 24th of July, Altman revealed hopes of bringing this number to 2 billion.

Reactions from blockchain stakeholders 

While many expressed support for the project, many global blockchain community members have also opposed the idea. 

On Monday, former Twitter CEO and Bitcoin supporter Jack Dorsey tweeted that “at no time should a corporation or state own any part of the global financial system.”

Also, Ethereum co-founder Vitalik Buterin shared an extensive essay via Twitter, explaining that distinguishing between humans and AI-powered bots may become challenging. He asserted the necessity of digital “proof of personhood” in solving issues related to spam and concentration of power:

“In other words, if you’re a human, you can put one key on the list, but you can’t put two keys on the list, and if you’re a bot you can’t put any keys on the list.”

Despite the present concerns, Buterin recognises that there is no current “ideal” form of proof of personhood. He sees the potential for a fusion of different approaches to the issue. Community accountability, audits and checks are central to this process, Buterin explained.

“Not having any proof-of-personhood at all has its risks too: a world with no proof-of-personhood seems more likely to be a world dominated by centralized identity solutions, money, small closed communities, or some combination of all three.”

He expressed that projects like Worldcoin could help decentralise power while minimising information disclosure.

On a broader scale, the newly launched Worldcoin could face inquiries from data regulators in the United Kingdom because it raises concerns over privacy and critical biometric data safety.

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According to a Reuters report on Tuesday, The Information Commissioner’s Office(UK’s data regulatory body) acknowledged the launch of the crypto project in the country and said it would examine the project and make further inquiries concerning data laws.

In a conversation with CoinDesk, a spokesperson for the office said:

“We note the launch of WorldCoin in the U.K. and will be making further enquiries. Organizations need to have a clear lawful basis to process personal data. Where they are relying on consent, this needs to be freely given and capable of being withdrawn without detriment.”

It has been confirmed that Worldcoin cannot function in the United States yet due to regulatory constraints. We, however, await responses from other global authorities.

What is next?

It is known that as artificial intelligence (AI) advances, it will become increasingly difficult to distinguish between humans and machines. 

Despite differing views, it is expected that Worldcoin maintains its objective to address online identity authentication and the concept of proof-of-personhood.

Although Worldcoin’s success remains uncertain in the short term, its ambitious scope and potential impact cement its spot as one of the most audacious projects in the industry.