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Overview
WorldCoin, a verification and identity-based protocol that raised $115 million in a Series C funding round in May 2023, is one such initiative. Co-founded by OpenAI CEO Sam Altman, WorldCoin's "proof of humanity" system uses retinal scans to authenticate human users, combating the increasing presence of bots online. The company is developing World ID, a digital identification system generated using a person's iris, with a focus on preserving privacy. WorldCoin's primary emphasis is on ensuring that each user is a genuine person and controls only a single identity. The project's objectives have been fluid, reflecting shifts in focus from wealth redistribution to introducing new crypto users, to a narrative centered around AI.
WorldCoin has also launched its WLD token on the Optimism Mainnet. The project aims to create a globally inclusive identity and financial network that could potentially increase economic opportunity, scale a reliable solution for distinguishing humans from AI online while preserving privacy, and show a potential path to AI-funded Universal Basic Income (UBI).
Technology
The dilemma is clear: How can we ensure that digital participants are human without sacrificing privacy or resorting to imperfect solutions like government IDs and legacy banks? As artificial intelligence becomes more sophisticated, distinguishing between humans and computers will become increasingly challenging.
WorldCoin's approach offers a potential solution by creating a trusted authority that issues "proof of human" certificates based on biometrics. Zero Knowledge Proofs enable users to prove possession of a valid token without revealing their identification, maintaining anonymity.
The Components of WorldCoin
- WLD Token: A governance token issued to users who acquire a WorldID, designed to align incentives around network growth.
- World App: A frontend software that controls onboarding, custodies identity credentials, and enables privacy-preserving sharing of credentials using zero-knowledge proofs.
- World ID system: Made possible by the infamous "Orb," which scans an individual's iris to confirm their identity.
WorldCoin uses custom biometric imaging devices (Orbs) that scan users' irises for Proof of Personhood (POP), an identity verification mechanism that uses unique attributes of individuals for Sybil-resistance. Orbs are custom built and not open source. Therefore, the public is unable to verify any of the actual privacy-preserving claims made by WorldCoin.
The WorldCoin team claims they only use the data for the uniqueness check and do not collect Personally Identifiable Information (PII). Using Zero-Knowledge (ZK) proofs enables users to pass the uniqueness check while still retaining anonymity. Recall, a ZK proof allows someone to prove they have some specific data without having to reveal any information about the actual data. Biometric data is processed locally on the Orb and then deleted once the IrisCode is created, although users can opt into data custody to back up their biometric data with WorldCoin.
However, the validation of this claim requires a high level of multi-domain technical expertise and full access to all relevant systems. Without both, users must place their trust in others. The WorldCoin source code is publicly available, but users cannot confirm that the public source code matches the software loaded into the Orb device. This discrepancy raises concerns about the transparency and integrity of the system.
For a project to be genuinely open source, it must also embrace open hardware. This means that technical designs should be published, allowing anyone to create their own Orb-compatible iris scanner using basic components and open-source software.
Currently, WorldCoin falls short of this standard. While some hardware specifications have been released under a "responsible use license," this is not a recognized free software or open-source license. The information published is insufficient to build a working Orb, and critical details such as CAD models, IP related to the electrical interface, and components related to tamper detection are undisclosed.
How Does It Work in Practice?
To become a part of WorldCoin, users download the World App crypto wallet and undergo an iris scan at a nearby Orb. The Orb verifies the uniqueness of the iris and assigns a World ID. WorldCoin maintains that they store an "IrisCode" rather than the actual iris scan data, a claim that has sparked debates about sensitivity and potential data leakage (Buterin).
WorldCoin also encourages users to "opt in" to image custody, retaining the original iris images. This has led to concerns about data retention and the evolving nature of the algorithm.
To incentivize participation, WorldCoin offers 25 WorldCoin tokens (WLD) to those who sign up, with the opportunity to claim more weekly. However, regulatory concerns have limited this offer in some jurisdictions, including the US and mainland China.
Governance Structure
WorldCoin's governance is currently managed by the WorldCoin Foundation, with provisions for Decentralized Autonomous Organization (DAO)-led governance. Unlike the typical one-token-one-vote governance model prevalent in most crypto projects, WorldCoin's documents highlight a "one-person-one-vote" mechanism. This unique approach indicates that WorldCoin may pursue a combination of these governance models, fostering a more democratic and inclusive decision-making process.
WorldCoin was founded by Sam Altman (OpenAI), Max Novendstern, and Alex Blania. Sam Altman's association with OpenAI lends significant credibility to WorldCoin. However, the extent of his involvement beyond promoting the project remains unclear.
The investor base includes prominent names such as a16z, Bain Capital Crypto, Khosla Ventures, and Multicoin. Tech influencers like Balaji Srinivasan have also been early promoters of WorldCoin.
Concerns and Vulnerabilities
Despite its ambitious goals, WorldCoin has faced criticism from the crypto community, with concerns over potential data mismanagement and privacy leaks for sensitive iris biometrics. Critics also highlight implementation flaws such as unfavorable WLD tokenomics, lack of accessibility, and mistrust in Sam Altman due to his background in AI.
Decentralization Dilemma
Beyond just the token, WorldCoin's claim of decentralization in other aspects is also met with skepticism. The custom Orb hardware, used for iris scanning, is a central point of control, and the process of decentralizing it presents significant challenges. Ensuring that the Orbs are constructed according to specifications and are not modified maliciously is a complex task. The scale of audits required to achieve billions of signups would be enormous, and the risk of malicious Orbs generating fake IDs could lead to irreversible consequences, such as siphoning off WLD tokens.
Privacy Concerns
WorldCoin's approach to privacy is criticized for being superficial. While the project argues that only the IrisCode is stored and that zero-knowledge proofs will preserve privacy, these assurances are hollow. Concerns around the potential leakage of data from the iris hashing algorithm, the risks associated with malicious access to a participant's data, and the scalability of the algorithm to larger populations have all been raised.
The use of zero-knowledge proofs is also questioned, with some critics describing it as "zero-knowledge washing," a way to make a dubious concept appear socially acceptable. The implementation of zero-knowledge proofs would be critical, and the responsibility would largely fall on third parties, such as corporations and governments. The permanent record of sensitive transaction histories linked to a biometric identifier is described as a "nightmare scenario."
Conclusion
WorldCoin represents a bold step towards redefining digital identity and the potential implementation of Universal Basic Income. By leveraging biometric technology, it offers a unique solution to the challenges of online democracy, bot impersonation, and AI-generated content.
However, the project's ambitious scope raises critical questions about privacy, censorship, and the ethical implications of involuntary iris scanning. As WorldCoin continues to develop, it will be essential to carefully consider these issues and the broader impact of this revolutionary approach on the digital landscape.
The success or failure of WorldCoin could have far-reaching implications for the future of digital identity, online democracy, and the pursuit of a more equitable society. It is a project that demands attention, critical analysis, and thoughtful engagement from all stakeholders in the digital world.
