Worldcoin’s Vision for Fighting the AI Threat to Human Identity
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Technology entrepreneur Sam Altman is having quite a year. His artificial intelligence company, OpenAI, took over the news cycle for a month after it released ChatGPT 4, opening the world’s eyes to the inevitable rise of AI. But that’s not all. Also this year, Altman launched a project that he has been working on for as long as OpenAI – Worldcoin.
Worldcoin is attempting to solve one of the greatest challenges of the digital age: how to prove that we are who we say we are online. This may sound almost farcical now, but tooling to authenticate our unique personhood is going to become standard as we continue to increase the amount of time we work, play, and relax in the digital universe. As Chuck Cummings writes, “[b]y leveraging biometric data such as facial recognition, Worldcoin offers a means to verify human identity and combat the rise of synthetic media manipulation. This not only safeguards the integrity of personal interactions but also has potential applications in areas such as online voting, identity verification for financial services, and protecting against identity theft.” But this is not all.
Part of Worldcoin’s vision is using its technology to help deliver a Universal Basic Income to everyone, everywhere. Implicit in this goal is not benevolence; it’s a recognition that artificial intelligence, especially when combined with other industries such as robotics, will displace, eliminate, or otherwise render obsolete a majority of jobs worldwide.
Chuck’s article brings a healthy dose of skepticism to the Worldcoin debate, but this concern is framed with hope. “Questions surrounding privacy, data security, scalability, wealth distribution, and real-world adoption must be thoroughly addressed to ensure that Worldcoin can truly deliver on its transformative potential and contribute to a more inclusive and authentic future.”
Worldcoin’s Vision for Fighting the AI Threat to Human Identity
Author: Chuck Cummings
Worldcoin's Proof of Unique Human algorithm seeks to maintain the unique qualities that define our humanity, even in the face of advancing AI technologies.
By leveraging biometric data such as facial recognition, Worldcoin offers a means to verify human identity and combat the rise of synthetic media manipulation. This not only safeguards the integrity of personal interactions but also has potential applications in areas such as online voting, identity verification for financial services, and protecting against identity theft.
I am skeptical about whether this will work as intended. For one thing, it’s hard for me to imagine that people will give their biometric data to a company created by the same guy whose OpenAI code is threatening human authenticity. It seems like a conflict of interest! I mean, couldn’t this biometric data enable AI bots to become even more like us?
There are other concerns about Worldcoin’s collection and storage of biometric data:
Privacy and data security
While biometric data can offer a unique and reliable method for identity verification, its collection and storage introduce concerns about potential breaches or misuse. If the biometric data used for Proof of Unique Human were to be compromised, it could lead to identity theft or unauthorized access to personal information, posing significant privacy risks for individuals. In May, TechCrunch reported that hackers had been able to steal login credentials of several of Worldcoin's iris-scanning operator devices. Worldcoin stated that nobody’s personal information was stolen.
Reliability
Biometric data, unlike traditional identifiers such as passwords or PINs, cannot be easily changed or reset if compromised. This raises concerns about the permanence of one's identity and the potential consequences of a breach or misuse of biometric data.
Accuracy
The feasibility and accuracy of biometric verification methods in various real-world scenarios can also be a subject of debate. Factors such as changes in physical appearance, environmental conditions, or technical limitations may affect the reliability and effectiveness of facial recognition technology.
By utilizing biometric data and cryptographic verification, Worldcoin seeks to authenticate individual identities on the blockchain, fostering trust and combating identity fraud.
However, questions arise regarding the effectiveness and security of this system. How reliable and tamper-proof is the biometric data used for identification? What measures are in place to prevent potential data breaches or misuse? The robustness and resilience of Proof of Unique Human remain areas that require thorough examination.
How Does Worldcoin Work?
Worldcoin comprises several interconnected components that form the foundation of its mission to preserve human identity and foster global financial inclusion. Let's explore each of these components to gain a better understanding of Worldcoin's structure and purpose.
The Worldcoin Foundation
Based in the Cayman Islands, the Worldcoin Foundation acts as a steward, supporting the development and implementation of Worldcoin's initiatives and ensuring they align with the organization’s social impact goals.
Tools for Humanity
Headquartered in Germany, Tools for Humanity is a global software and hardware development company building the tools to bring blockchain and digital identity technologies and products to billions of people, including by contributing to the development and growth of the Worldcoin ecosystem.
Universal Basic Income (UBI)
Universal Basic Income lies at the core of Worldcoin's commitment to provide an unconditional income floor to individuals worldwide, regardless of their socioeconomic background. Through the implementation of UBI, Worldcoin aims to alleviate poverty, reduce inequality, and empower individuals to pursue their aspirations.
While Universal Basic Income represents a core tenet of Worldcoin's mission, it is not without its challenges and critiques. The funding required to sustain a global UBI program raises concerns about financial sustainability and the redistribution of wealth. Critics question the feasibility of implementing UBI on a large scale, particularly in regions with diverse socioeconomic conditions and varying costs of living.
While Worldcoin aims to address income disparities, the initial allocation of tokens and the potential concentration of wealth among early adopters raises concerns. How can Worldcoin ensure a fair and equitable distribution of tokens to avoid exacerbating existing inequalities?
World App
The World App is a digital wallet that enables users to interact with the Worldcoin and Ethereum protocols, authenticate their Proof of Personhood with World ID, send money to anyone for free, claim Worldcoin Grants, and explore other crypto tokens like USDC and ETH. The World App allows users to save, invest, and send money, deposit and withdraw using bank accounts or local payment methods, and track their crypto holdings.
World ID
World ID is an essential component of Worldcoin's identity verification system. It utilizes biometric data, such as facial recognition, to establish and authenticate an individual's unique identity on the blockchain. World ID helps combat the risks associated with identity fraud and ensures the integrity of interactions within the Worldcoin ecosystem.
Proof of Personhood
Proof of Personhood leverages biometric data and cryptography to verify the authenticity of individuals participating in the network. This innovative approach ensures that only real people are eligible to receive the benefits of the Worldcoin ecosystem, promoting trust and security.
Worldcoin Token
The Worldcoin token is the native cryptocurrency of the Worldcoin ecosystem. It serves as a medium of exchange within the network, allowing participants to transact, store value, and engage in various economic activities. The token plays a vital role in enabling the distribution of Universal Basic Income (UBI) and promoting economic empowerment.
Worldcoin Blockchain
The Worldcoin blockchain is built on an Ethereum scaling solution called Optimism. Worldcoin secures its network using the Proof of Unique Human consensus algorithm, which is significantly less energy-intensive than crypto algorithms like those securing the Bitcoin network, thus reducing Worldcoin's environmental impact.
With these various tools, Worldcoin seeks to revolutionize the global economic landscape, leveraging technology and social impact to create a more inclusive and equitable world.
Many of these components make sense, yet I remain skeptical of both World ID (will people want to give their biometric identities to Worldcoin to store on the blockchain?) and their approach to UBI (what gives the Worldcoin token any underlying value?).
How to Get Worldcoin
Worldcoin is not available in the United States. In countries where Worldcoin is available (I am unable to find a list of these countries), here are the steps to using it:
Download the World App: This step allows a person to set up their Worldcoin account and access a digital wallet connected to Worldcoin, Bitcoin, Ethereum, and other digital and traditional networks. The World App is operated by Tools for Humanity, a contributor to the Worldcoin system.
Sign up for World ID: It's possible to use the World App without signing up for World ID. However, in order to receive a free share of Worldcoin tokens and other digital currencies, a person must sign up for World ID by visiting a Worldcoin Operator and verifying their unique personhood at an Orb. This process may evolve in the future to include other verification signals. The Orb uses iris biometrics to establish an individual’s unique personhood, then creates a digital World ID that can be used pseudonymously in a wide variety of everyday applications without revealing the user's identity.
Receive a free share of Worldcoin and other digital currencies: Once an individual has verified their unique personhood, people in countries where the Worldcoin Token is available (per Worldcoin's Terms and Conditions) will be able to use their World ID to claim their share of free Worldcoin Tokens.
Conclusion
While its concepts of Proof of Unique Human and Universal Basic Income hold promise for empowering individuals and addressing income disparities, I am approaching Worldcoin with a healthy dose of skepticism. Questions surrounding privacy, data security, scalability, wealth distribution, and real-world adoption must be thoroughly addressed to ensure that Worldcoin can truly deliver on its transformative potential and contribute to a more inclusive and authentic future.
Charles “Chuck” Cummings is building Bankless Consulting’s social impact practice, where he’s helping organizations implement web3 technology to maximize their impact. He also serves as the Strategic Advisor to the Do Good Institute at the University of Maryland. Chuck lives in Baltimore and likes to eat tacos.
🎙️ Early Podcast
A Podcast About Web3 Business from Bankless Consulting
Early Ep. 23. Nanne Dekking: Fractionalized Art Ownership Onchain
In this episode, DSide sits down with Nanne Dekking, the co-founder and CEO of Artory, and discusses how blockchain technology is bringing transparency and authenticity to art transactions. Dekking's platform, Artory, bridges the gap between traditional art markets and modern financial systems by focusing on "Trust Information'' — elements that authenticate and determine the value of artworks. Key collaborations with Tokeny and the Winston Art Group aim to enhance asset liquidity and provide comprehensive data sets for high-echelon art. The podcast also delves into the role of NFTs in the art world and the impact of the recent NFT boom and bust cycle. The discussion culminates in exploring the potential of blockchain technology and trust information in enabling fractional ownership and collateralization of high-echelon art pieces, with Dekking sharing his vision of building an infrastructure that lets financial institutions and insurance agencies unlock art collateralization seamlessly.
Web3 Business Developments
Curated News on Recent Blockchain Adoption and Innovation
Crypto Funding: NFT Music Service Backed by Snoop Dogg Leads With $20M
Author: James Cirrone
🔑 Insights: Web3 companies have been off to a slow start raising capital this year, but things are starting to look better. This past week saw 16 cryptocurrency startups garner $94 million in fundraising, signifying that venture capitalists are showing renewed confidence in the crypto sector. The fundraising charge was led by Sound, a web3 music marketplace, and Alluvial, a developer of a liquid staking protocol, who successfully secured $20 million and $12 million respectively.
Sound and Alluvial have secured substantial investments, indicating a growing faith from venture capitalists in crypto-related ventures.
Sound, aiming to transform the music industry with its NFT model, has doubled the number of song NFTs minted on its platform since 2022, and generated $5.5 million for select creators.
Alluvial raised $12 million to bolster its enterprise-grade liquid staking solution, positioning itself to leverage the rise in Ethereum staking following the Shapella upgrade.
Google Play Allows Users to Earn Crypto Assets in Apps and Games
Author: RT Watson
🔑 Insights: Google has announced it will now permit apps and games that facilitate the buying, selling, and earning of digital assets such as NFTs on Google Play. This move aims to accommodate developers' ambitions and expand the scope of blockchain-based offerings. However, in light of fraud concerns, Google will enforce transparency regarding tokenized digital assets, forbidding promotion or glamorization of potential earnings from playing or trading activities. Google Play gave an inaugural approval to select blockchain-based applications, with supported categories including games using NFT rewards, crypto exchanges, and wallets, but excluded crypto mining apps.
Expanded opportunities for blockchain-based offerings: Google Play's decision to allow apps supporting NFTs and other digital assets can open up new avenues for developers, potentially leading to a surge in innovative blockchain-based applications.
Enhanced transparency: Google's insistence on transparency regarding tokenized digital assets may raise the standards of openness within the crypto space, boosting consumer trust and possibly leading to wider adoption of these technologies.
New platforms for crypto exchanges and wallets: By including crypto exchanges and wallets in the supported categories for blockchain-based applications, Google Play may offer these platforms a broader audience, potentially enhancing the user base of cryptocurrencies.
Reinforcing regulatory compliance: By requiring blockchain-related apps to comply with jurisdictional regulations, Google Play could strengthen overall industry compliance, promoting a safer and more stable crypto environment.
Intensified competition: This move is set to boost competition in the industry, particularly with crypto-native entities, driving innovation and improvement in blockchain-integrated products and services.
“From reimagining traditional games with user-owned content to boosting user loyalty through unique NFT rewards, we’re excited to see creative in-app experiences flourish and help developers expand their businesses.”
– Joseph Mills, Google Play Product Manager.
8 Billion People Will Go On-Chain Over the Next Decade: Coinbase Protocols Lead
Author: André Beganski
🔑 Insights: Jesse Pollak, Coinbase protocols lead, predicts that over the next decade, crypto adoption will significantly accelerate, with an expectation of the vast majority of the global population coming onchain. The projection marks a bold aspiration for the blockchain industry, which still represents a developing segment of the finance sector, particularly after suffering reputation damage due to high-profile failures and falling prices. Pollak envisions a future where everyone is placed on an equal playing field with access to the same products and services, regardless of geographical location, as on-chain services are inherently global.
Crypto adoption is projected to soar over the next decade representing a major leap forward for blockchain tech.
Global equal access to products and services is envisioned as on-chain services are "fundamentally global by default."
Despite setbacks, industry figures view adoption as key to crypto's success, with Coinbase aiming to bring 1 billion people into the crypto sphere.
Base, Coinbase's Ethereum-based Layer-2 blockchain, will broaden the scope of on-chain activities to include art, music, gaming, and other consumer products.
“Our feeling is that there’s so much growth ahead of us. We have less than 10 million people on-chain today. There’s going to be 8 billion people on-chain over the next decade.” – Jesse Pollak, Coinbase Protocols Lead
BlackRock CEO Larry Fink: Crypto Will 'Transcend Any One Currency'
Author: Mat Di Salvo
🔑 Insights: Larry Fink, CEO of BlackRock, has expressed a bullish outlook on cryptocurrency, asserting its unique value proposition compared to other asset classes. Fink's comments illustrate a significant shift in the traditional finance world, with real-world asset managers increasingly advocating for and driving institutional adoption of digital assets. Fink underlined the crucial role of ETFs in democratizing investing and acknowledged the growing global interest in cryptocurrencies. He also suggested that a globally recognized crypto product could mitigate the issue of dollar devaluation. These statements resonate with the larger vision of tokenizing real-world assets, which could make investments more universally accessible, thus transcending traditional financial boundaries.
The shift in mainstream finance towards recognizing and adopting digital assets signifies an expanding market and broader acceptance.
BlackRock's application for a Bitcoin ETF shows a growing interest from traditional asset managers in the crypto space.
The increased global interest in cryptocurrencies indicates a large, untapped market that can lead to further expansion of the industry.
Fink's evolution from skepticism to recognition of cryptocurrency illustrates the maturing of the digital asset space.
“We believe we have a responsibility to democratize investing.Over the last five years, more and more global investors are asking us about the role of crypto—and like I said, I do think a lot of crypto is an international asset. More importantly, because it’s so international, it’s going to transcend any one currency in currency valuation.” – Larry Fink, CEO of BlackRock
You Can Now Pay Merchants on Telegram in Bitcoin—Here’s How it Works
Author: Nivesh Rustgi
🔑 Insights: Cryptocurrency enthusiasts can now directly transact with merchants on Telegram using a standalone chatbot called Wallet, which leverages the TON blockchain for the storage, trading, and transfer of Toncoin (TON), Tether's USDT on Tron, and Bitcoin (BTC). The Wallet chatbot's team recently rolled out a feature named Wallet Pay API that empowers merchants to receive crypto payments on Telegram. This feature, developed independently of the Telegram developers, has attracted the interest of many businesses, with around 200 companies already in line to implement it and thousands more expected to follow suit. This development represents a significant step towards integrating blockchain technology with mainstream platforms, potentially facilitating wider adoption of cryptocurrencies.
Ease of Use: The Wallet chatbot facilitates instant crypto wallet creation linked to a user's Telegram account, negating the necessity for remembering or securing seed phrases or private keys.
Crypto Transactions on Familiar Platforms: Wallet enables users to perform regular transactions using cryptocurrencies on the familiar Telegram platform, eliminating the requirement to switch between various applications for crypto payments.
Increased Accessibility: The Wallet chatbot's support for various cryptocurrencies provides users with diverse options for transactions, thus expanding the potential applications of different digital currencies.
Promoting Mainstream Adoption: By offering a real-world use case for cryptocurrencies, such as making purchases from merchants, this integration contributes to the broader adoption and mainstream acceptance of digital currencies.
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