Worldcoin (WLD) is a cryptocurrency project created by Sam Altman, CEO of OpenAI and founder of ChatGPT. As AI becomes more integrated into society, WLD's vision is to use iris authentication technology to distinguish humans from AI. It also aims to compensate for jobs lost to AI by paying a universal basic income through the blockchain. Unlike typical cryptocurrencies, WLD's goal is to build a global financial and identity network that is accessible to everyone, regardless of socioeconomic status or location.
Worldcoin's structure
Worldcoin is made up of three main components: World ID, Worldcoin (WLD), and the World App.
* World ID : A digital identity system that uses iris scanning technology via orb devices to authenticate users while protecting privacy through zero-knowledge proofs. It ensures identity verification online without compromising personal data.
* Worldcoin (WLD) : A homegrown cryptocurrency that is free and available to everyone, and can be used for transactions and governance voting.
* World App : A polygon-based, minimalist wallet that manages cryptocurrencies including Worldcoin, Bitcoin, Ethereum, and USDC, and also serves as a digital passport for World ID holders. Available on iOS and Android in over 80 countries.
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How Worldcoin works
Worldcoin's Orb device uses biometric iris recognition to generate a unique personal identification code and verify a user's identity for coin payments through a secure “proof of personality” method. Iris recognition was chosen because of its high accuracy in identifying individuals compared to other biometrics. Worldcoin allows users to create a cryptocurrency wallet without exposing their personal identity, and provides one Worldcoin per week as a subsidy.
Worldcoin is issued as an Ethereum ERC-20 token and uses Optimism rollup technology to ensure scalability. New users receive 25 tokens via airdrop after creating a World ID. The World App uses Zero-Knowledge Proof to maintain anonymity while protecting privacy. Future applications of the Orb technology include robot verification replacement, DAO voting governance, unsecured lending, and membership loyalty programs, with initial features focused on Discord verification.
WLD Coin Tokenomics
The WLD coin has an initial maximum circulating supply of 143 million, and free WLD coins are only available through the World app. WLD does not have an ICO, so users should be wary of fake tokens and apps. According to the whitepaper, the WLD token is designed primarily as a governance utility token where the community determines its future utility. The World Coin Foundation plans to allocate 6 billion WLD tokens to users over 15 years, with an annual inflation rate of 1.5% once the full supply is released. The token distribution is split 75% to the community, 13.5% to Tools for Humanity (TFH) investors, 9.8% to the initial development team, and 1.7% to TFH Reserve.
Tools for Humanity raised $115 million in Series C funding and extended the token lock period for early investors and team members from two years to four years, with full unlocking by 2028. This change reduced the amount of tokens unlocked daily from 3.3 million to 2 million. The new unlocking schedule does not affect tokens allocated to verified World ID holders. Over 6 million people have verified their World IDs, and 77% of the 275 million WLD tokens in circulation have already been claimed.
Advantages and disadvantages of WorldCoin
Pros of Worldcoin:
Worldcoin utilizes iris recognition technology for personal identification, providing a strong defense against Sybil attacks, which occur when users create multiple pseudonymous identities on a blockchain network. This method allows users to verify their identity without revealing personal information, which increases security and prevents network manipulation.
Risks/concerns:
There is a risk of biometric data leakage as iris recognition information can be stored during this process. Critics, such as whistleblower Edward Snowden, worry that even if the scan is deleted, the hash (small piece of data) generated remains, which could lead to privacy concerns. Since biometric information such as iris data cannot be changed, its theft can have serious consequences. In response, WorldCoin claims that iris recognition data is not stored and emphasizes that the technology only verifies uniqueness, not identity, while not harming the user's eyes.
WorldCoin(WLD) Coin Outlook
WorldCoin plans to increase domestic WorldID enrollment by installing additional orbs in areas such as Seongsu and Hongje. As the number of global subscribers grows, concerns about iris data collection are growing. Some critics call Worldcoin a “scam” and suggest that it is primarily used to improve the Orb or OpenAI algorithms. However, others argue that Worldcoin is a potentially impactful project that could popularize blockchain technology, aligning with blockchain's goals of decentralization and global accessibility.
Worldcoin's listing on Binance at launch appears to be significant, with hopes that it will encourage further integration of traditional finance and blockchain. Despite the difficulties in the virtual asset industry following the FTX bankruptcy and Terra collapse, Worldcoin's developer, Tools for Humanity (TFH), has continued to secure investment, raising $125 million last year and another $150 million in a recent Series C funding.