Worldcoin, co-founded by Sam Altman of OpenAI, is a groundbreaking project aimed at creating a new identity and financial network owned by everyone. Launched with the ambition to drastically increase economic opportunity, Worldcoin introduces a privacy-preserving digital identity known as World ID, alongside a digital currency (WLD) distributed simply for being human. The initiative seeks to distinguish humans from AI online while preserving privacy and enabling global democratic processes, potentially paving the way for AI-funded Universal Basic Income (UBI).
The project, which received approximately $100 million in funding from prominent investors like Andreessen Horowitz and Khosla Ventures, officially launched its cryptocurrency, WLD, on July 24, 2023. Worldcoin's innovative approach involves the use of the World App and a biometric verification device called an Orb, which uses iris scans to verify individuals' identities. This process allows users to prove they are unique and real persons online, offering a way to participate in the digital economy and access financial services, especially for those in underserved communities.
Worldcoin consists of three main segments: World ID, World App, and the Worldcoin Token (WLD). World ID serves as a decentralized, privacy-protected identity solution, the World App functions as a crypto wallet tied to the user’s World ID, and the WLD token is used within the World App for various services, including grants for verified users. The project has sparked significant interest, but also concerns over privacy and the implications of biometric data collection.
By 2024, Worldcoin continues to expand its goal of creating a decentralized identity and financial network through significant updates and new initiatives. One of the most important advancements is the introduction of World ID 2.0, which enhances privacy features while allowing for easier and more secure verification. This new version integrates Secure Multi-Party Computation (SMPC), a cryptographic method ensuring that iris scans used for World ID are split into secret components, preventing the creation of a central database while enhancing user privacy. Additionally, all key software components for capturing and storing data from the Orb device have been open-sourced to increase transparency and user trust.
Worldcoin has also made progress on its cryptocurrency aspect. The project transitioned to using WLD tokens to reward Worldcoin Operators in eligible regions, as the adoption of World ID increased globally, with millions of verifications across countries such as Argentina, Spain, and Portugal. Furthermore, Worldcoin initiated new agreements with trading firms to regulate and manage the circulation of WLD, ensuring that the token remains stable in the market.
Moreover, Worldcoin is preparing to release new, more approachable versions of the Orb, moving away from its initially controversial design to something that appears less dystopian. This change aims to boost global adoption while addressing privacy concerns raised in regions like India and Kenya, where regulatory issues have posed challenges.
