What is Worldcoin, the iris-scanning cryptocurrency backed by OpenAI CEO Sam Altman

It also has a World App that enables payment, purchases and transfers using Worldcoin and other digital assets. Worldcoin plans to launch in the first half of 2023 and distribute 10 billion tokens in total, with 80% going to users.

How does Worldcoin work?

In early 2020, Alex Blania started working with Worldcoin cofounders Sam Altman and Max Novendstern. The question driving them was simple: “What if there were a way to freely distribute shares of a new digital token to every person on the planet?” The three founders believed that the more people hold the currency, the easier it would be to send and receive payments with it.

The founders envisioned Worldcoin as a global distribution system for Universal Basic Income, which is essentially regular money for everyone from the government or organisation to meet basic needs. Altman even hoped that the coin could one day be used to distribute huge profits generated by AI systems equally among people.

But ensuring even distribution of coins meant that Worldcoin needed to ensure that everyone only signs up once. For this, the founders picked biometric iris scans. They developed a device called Orb, which scans the iris of a person to prove their uniqueness and humanness and assigns them a “World ID” that can be used as a global digital passport.

The melon-sized Orb has a shiny metallic outward finish. (Image: Worldcoin)

The scan is converted into a string of numbers known as a hash in such a way that it’s impossible to recreate the scanned image even if the hash is compromised. The Orb sends the iris hash and a hash of the user’s public key to Worldcoin servers. If the person hasn’t signed up before, the hashes are added to the database and the company’s blockchain.

What lies ahead for Worldcoin?

One of the biggest hurdles to overcome with Worldcoin is the accessibility of the Orb, that is, making it available to as many people as possible and expanding the database. To solve this, Worldcoin plans to offer coupons or access to certain loans, incentivising more people to sign up.

Worldcoin is reportedly also about to launch an SDK, allowing developers to use its API and incorporate its tech into their own apps and platforms wherever they wish that a user only performs an action once.

Challenges

Worldcoin also faces many challenges and criticisms. Some people are concerned about the privacy and security of their biometric data, and whether it will be used for other purposes. Others question the feasibility and scalability of the project, and whether it can reach the billions of people who are unbanked or underbanked.

Moreover, some experts doubt the value and utility of the Worldcoin token, and whether it can compete with other cryptocurrencies or fiat currencies. It remains to be seen whether Worldcoin can deliver on its ambitious vision and overcome its potential pitfalls.

Recently, according to a TechCrunch report, hackers installed password-stealing malware on the devices of multiple Worldcoin Orb operators, granting them complete control over the operators’ dashboards. This raises concerns about the security and privacy of the iris-scanning technology.

How to use Worldcoin

The Worldcoin app (Image: Worldcoin)

According to Worldcoin, the platform has surpassed one million sign-ups and has between 100 and 200 Orbs operational at any given time. You can become a part of the growing network by downloading the World app, which was released on May 8, and following the steps below.

Step 1: Download the World App to create a Worldcoin account and a digital wallet. It’s available on both iOS and Android.

Step 2: Sign up for World ID. It’s possible to use the World App without going through the eyeball scan procedure, but to gain their free share of Worldcoin Tokens and other digital currencies, a person must sign up for World ID by visiting a Worldcoin Operator.

Step 3: Receive your free share of Worldcoin and other digital currencies with your World ID.

Do note that as of May 16, Worldcoin is not yet available for purchase on the app. The co-founders intend to launch it in the next few weeks. The process and timeline for users in India to register for the platform through a Worldcoin Operator also remain unclear.