Worldcoin Review: Project To Revolutionize Cryptocurrencies Expected To Boom

Worldcoin is a project created to distinguish humans from artificial intelligence and launch a jointly owned cryptocurrency. It is expected to develop an open-source protocol for global financial fairness and inclusion.

Worldcoin is a new, jointly owned global currency based on Ethereum that will be distributed relatively too as many people as possible. People worldwide will get a piece for free. The company proposes — if they agree to scan their irises with a specially designed device the company calls a “chrome orb.”

The globe is needed, the website continues, because of Worldcoin’s commitment to fairness: each person gets their allotted share of digital currency and no more. To ensure there is no double dip, the chrome sphere scans the participant’s iris and several other biometric data points, and then, using a proprietary algorithm the company is still developing, identifies cryptographically acknowledges that they are human and unique in the Worldcoin database.

The project was founded by Sam Altman, Alex Blania, Sam Altman, and Max Novendstern. Work on the project began about three years ago, and it is preparing to launch a blockchain protocol soon.

Soon after it was founded, it received Series A funding in a round led by a16z. Coinbase Ventures, Digital Currency Group, and LinkedIn co-founder Reid Hoffman are among other investors. In March of last year that the company raised $100 million through a private token sale, citing two insiders.

According to a report by the McKinsey Global Institute, there are now more than 4.4 billion people without a legitimate identity or digital access. For identity verification, Worldcoin’s vision is to build the world’s largest and fairest digital currency and identity system. It performs identity authentication by scanning the eyeballs of every person on the planet and has scanned the eyeballs of millions to date.

Worldcoin is in beta and is expected to launch the mainnet in the first half of 2023. It is raising $120 million at a US$3 billion valuation.

There are two main agencies behind it: the Worldcoin Foundation and Tools for Humanity. The Worldcoin Fund is used to support and develop the Worldcoin ecosystem and build community. Tools for Humanity is a technology company that aims to ensure a fairer economic system and is also a real development agency of Worldcoin.

Why was it created?

Worldcoin has three main tasks, creating a global identity ID, a global currency, and a wallet carrying an identity ID and currency. You can use your Tokens, other digital assets, and traditional currencies for payment, purchase, and transfer. These three tasks correspond to three elements:

this project wants to create a digital economy where everyone can participate in the ever-growing digital economy and benefit from decentralized collective ownership. The first step is to allow as many people as possible to hold the same Token, and the more similar Tokens are used to form network effects, the more valuable the Token will be for each participant, so WorldCoin will broadcast to 1 billion people worldwide to rapidly expand its financial network.

Worldcoin has custom developed a set of Biometric Device Globes for this purpose, which can verify a person’s uniqueness by scanning the iris while ensuring verifier privacy through verifier witness zero knowledge.

Mobile numbers and email addresses still need to be made easier to obtain. Still, wallet addresses can be generated extremely conveniently without KYC on Web3, leading to the proliferation of fake accounts, so fairness of Token distribution is the main problem to be solved. Each person can only register one wallet in their network. When discussing DID, data analytics, and other means, Worldcoin directly applies the first principle.

Products

The Orb

It is a spherical device with a diameter of about 20 cm and a weight of 2.5 kg with the purpose of collecting data from the user’s eyes to solve problems through biometrics. Precisely, Orb will capture the user’s eyes and then be converted into a short code to help the system check whether that person has registered or not.

The system will compare with other bases in the data. If no match is found, then the user will be accepted and will be added to the database to get free rewards from the project. Otherwise, if there is a match, the user is registered before, which means you will be disqualified immediately. Angular images will not need to be stored or uploaded as opposed to other centralized services, and users will not need to provide personal information when registering.

Worldcoin has been conducting Orb testing on several countries since mid-2021 such as Chile, Kenya, Indonesia, Sudan, France
The test results show that the registration rate of using Orb on Worldcoin is increasing with an average registration rate of 700 Orb per week.

Mobile wallet

Worldcoin was built to be the first cryptocurrency to be widely accepted, to achieve this first Worldcoin must be useful to people who are not experienced with cryptocurrencies and must be easy to understand. Since then, the platform has built a mobile wallet application that allows users to learn about Worldcoin and other cryptocurrencies. In addition, users can request to see their balance, send payments. P2P and use their Worldcoin in the Ethereum ecosystem.

Open Source Software Development Kit (SDK)

The SDK will help developers build products on Worldcoin. The SDKs will combine with existing decentralized finance protocols, allowing anyone to meet the market, local, regional, and global needs. In particular, these SDKs use the “Zero Knowledge” cipher suite for third-party apps, maintaining the user privacy described in the account privacy section.

How does Worldcoin Work?

Mechanically, Worldcoin is a Layer 2 protocol on the Ethereum blockchain. It monitors its own economy and currency and relies only on the main server for verification purposes.

Worldcoin intends to reach everyone on earth and implant cryptocurrency in their smart device. To do that, Altman and his team need participants to prove that they are real people and not something else. Since biometrics are unique and difficult to mine, this method ensures that everyone can only receive Worldcoin once.

A device called Orb scans your eyeball when you want to get some coins. It’s an eyeball recognition technology that digitizes the patterns of the colored portion of your eye. It then compresses the samples into a code representing the coin owner’s ID, where Orbs stores copies of your irises, and what they do with them is unknown.

Worldcoin is currently attracting the attention of thousands of people across Asia, South America, Africa, and parts of Europe. The amount of coins donated is not explicitly stated, but considering it is only valued at a few cents, it may not be life-changing.

Another obvious detail is that Worldcoin is being developed in the West, but its prototypes and testing processes are being carried out in different parts of the world, especially in poorer regions.

Risks of Worldcoin

One of the main concerns surrounding Worldcoin is security. As data collection becomes more and more common and overlooked, people can’t help but feel anxious about eye scans. Even if Worldcoin assures users that no biometric data will be kept, there is a pervasive vulnerability when staring at that lifeless device called the Orb.

Iris recognition can do many things. It helps employers keep track of worker engagement. Law enforcement agencies also use this technology to identify criminals or record their information quickly. Smart devices are starting to use iris recognition instead of passwords for more secure logins.

The problem with this technology is that it is very easy to defeat and exploit. You can even zoom in on a shot of a person’s eyes and bypass some iris detectors. Worldcoin not only has a copy of your iris but knows where it’s going as long as you keep it. If that’s true, the things you buy or the people you pay for will probably be recorded.

Another potential problem with Worldcoin is supply and demand. It’s easy for demand to increase, pushing prices up when supply is low. As long as half the world has Worldcoin, the other half will want to get involved. As a result, demand increases and so does the price. That creates a healthy economy as opposed to everyone having the same thing and waiting for a devaluation that may never happen.

Conclusion

Worldcoin itself is a cryptocurrency built on top of Ethereum “Layer 2” to bring high security to the Ethereum network. Worldcoin aspires to bring users a new perspective on CeFi and DeFi by unifying the traditional and decentralized financial economies. However, the project is currently facing many significant challenges, from human resources to infrastructure construction, the project approach is still quite vague because the project has not released a white paper yet.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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