What is Worldcoin? How Does it Work? (2023)

“Empowering Authentic Identity in the Digital Age: Exploring Worldcoin’s Revolutionary Platform”

Introduction

Worldcoin, a digital identification platform, aims to provide a convenient means for individuals worldwide to verify their real human identity and distinguish themselves from bots or AI algorithms. Tools for Humanity, the company behind Worldcoin, was co-founded by Altman, renowned for creating ChatGPT. Ironically, Altman has played a significant role in fueling the current AI gold rush, exacerbating the very problem that Worldcoin seeks to address.

Utilizing cryptographic and blockchain tools commonly associated with cryptocurrency, Worldcoin has developed a digital passport system. This system is designed to offer secure and reliable identification services to every person on the planet. Additionally, the platform supports the WLD crypto token and provides a payments infrastructure for its users.

By leveraging cutting-edge technology, Worldcoin aims to revolutionize the way identities are verified and establish a global standard for authenticating individuals. However, the paradox of its co-founder’s involvement in the AI industry highlights the urgent need for such solutions in a world increasingly affected by AI algorithms and their potentially harmful consequences. Through Worldcoin’s efforts, the hope is to strike a balance between technological advancement and safeguarding human authenticity in the digital era.

Also read: Introducing Top 10 Artificial Intelligence (AI) Cryptocurrencies

Also read: What is Cryptography? How it Protects Digital Assets (2023)

Invention of Worldcoin?

Worldcoin, a cryptocurrency initiative, emerged during the COVID-19 pandemic with the aim of democratizing access to the global economy and introducing it as part of Universal Basic Income (UBI). The founding members are Sam Altman, the CEO of OpenAI, and intellectuals Alex Blania and Max Novendstern.

Sam Altman’s Background: Sam gained fame as the former president of Y Combinator, a startup accelerator known for supporting companies like Twitch, Reddit, and Airbnb, as well as crypto ventures like Coinbase, Filecoin, and OpenC. He later became the CEO of OpenAI, where he focused on AI advancements.

Alex Blania and Max Novendstern: Alex, a theoretical physicist from Caltech, brings expertise in neural networks. Max, a Harvard graduate with experience at Bridgewater Associates, joined the team as well.

Sam’s Vision for Worldcoin: Sam views Worldcoin as a test for UBI, a concept he believes will be necessary due to the rapid growth of artificial intelligence. He proposed that AI could fund UBI, which sparked some debate among AI experts.

Worldcoin’s Foundation: The official founding date of Worldcoin is unclear, but it operates under Tools for Humanity Corporation, a for-profit software company based in San Francisco. Plans to incorporate the non-profit Worldcoin Foundation are underway.

High-Profile Investors: Despite starting quietly, Worldcoin gained significant attention when it raised $25 million from prominent names in the crypto sphere, including Coinbase Ventures and FTX’s founder.

Worldcoin’s Unique Approach: Sam’s celebrity status and high-profile investors created buzz, but what made waves was Worldcoin’s promise of free crypto for simply looking into one of Worldcoin’s orbs (an explanation of orbs will follow).

Community-Driven Initiative: Worldcoin is supported by a global community of programmers, economists, and technologists, working to enhance global economic accessibility. The Worldcoin Foundation will oversee the project’s growth until it becomes self-sustaining.

How does it work?

Worldcoin, envisioned as a three-legged stool, relies on the harmonious adoption and utilization of three interdependent components to achieve its mission. These components are the World ID, World App, and WLD Cryptocurrency Token.

i. World ID

At the core of the Worldcoin platform lies the World ID, a revolutionary concept designed to empower users to verify their humanity while safeguarding their privacy in the digital realm. This “proof of personhood” is ingeniously created through the use of an iris-scanning device known as the Orb. Much like fingerprints, each person possesses a unique iris pattern. The Orb scans a user’s iris and utilizes its distinct structure to generate a one-of-a-kind identification code called the IrisCode.

Crucially, this code remains detached from any personal information, ensuring that each individual can only have one World ID. After the iris scan is completed, the Orb securely saves an anonymous IrisCode and then issues the World ID to the user. Importantly, the system does not necessitate repeated iris scans for identity verification purposes, enhancing convenience and efficiency. Furthermore, to uphold user privacy, the Orb permanently erases the scanned iris image.

To register for your verified World ID:

  1. Download the World App onto your device.
  2. Access the World App to find the nearest Worldcoin Operator.
  3. Visit the designated location and complete the QR code scan and verification process at an Orb, guided by a helpful Worldcoin Operator.
  4. Once the process is completed successfully, you’ll obtain your exclusive and fully functional World ID.

ii. World App

The World App serves as the repository for the esteemed World ID. While preserving users’ privacy, the app offers access to a burgeoning array of decentralized finance applications. Primarily functioning as a crypto wallet, its core purpose is to securely store user credentials, enabling seamless verification on third-party applications.

Alongside the World ID, the World App is designed to accommodate leading cryptocurrencies such as Bitcoin, Ethereum, and USDC, with the promise of supporting additional cryptocurrencies in the future. This integration enhances user convenience, allowing them to manage their digital assets and identification within a single, cryptographically secure app.

iii. WLD Cryptocurrency Token

Once users successfully establish their World ID and download the World App, they gain access to the WLD cryptocurrency token. Initially issued to participants of the beta program, a substantial quantity of WLD was airdropped to users during the platform’s official launch. Notably, prominent cryptocurrency exchanges, including KuCoin and Binance, have listed WLD for trading, adding to its liquidity and accessibility.

According to the Worldcoin white paper, the platform plans to issue a total of 10 billion WLD over a 15-year period. As of the official launch, approximately 143 million WLD are already in circulation. Among these, 43 million WLD were allocated to verified World App users, while 100 million were allocated to market makers to facilitate trading activities.

Worldcoin’s three-legged stool concept epitomizes its mission to offer a comprehensive and secure digital identification solution, encompassing the World ID, World App, and WLD Cryptocurrency Token. With these components working in unison, Worldcoin seeks to revolutionize identity verification and privacy while contributing to the rapidly evolving landscape of decentralized finance.

As the platform gains momentum and expands its global presence, it aspires to redefine the way individuals interact with digital systems and protect their authentic humanness in an increasingly interconnected world.

Conclusion

Worldcoin’s innovative digital identification platform, driven by its unique three-legged stool concept, seeks to revolutionize identity verification and privacy in the digital era. Through the use of the World ID, World App, and WLD Cryptocurrency Token, the platform aims to empower individuals worldwide to distinguish themselves from AI algorithms and bots, while fostering financial inclusion through its cryptocurrency initiatives. Worldcoin’s vision embodies a balance between technological advancement and safeguarding human authenticity, offering a promising solution for the challenges posed by AI algorithms and their potential consequences.