NAIROBI (CoinChapter.com) — Web3 digital identity platform Humanity Protocol, promising a privacy-focused alternative to controversial Worldcoin, has secured significant funding from over 20 venture capital firms. The project aims to provide a more privacy-centric approach to establishing digital identity, potentially positioning it as a major challenger within the growing Web3 space.

The funding round, led by Hashed, CMCC, Cypher Capital, Foresight Ventures, and Mechanism Capital, highlights confidence in Humanity Protocol’s potential to transform digital identity and financial inclusion. Backed by industry titans Animoca Brands and Polygon Labs, the project is set to launch its testnet soon.

Humanity Protocol’s Privacy-First Approach

Unlike Worldcoin’s iris-scanning technology, Humanity Protocol employs palm recognition coupled with zero-knowledge proofs to establish user identity. This approach promises a less invasive and more privacy-focused alternative.

“Our conviction is that technology should uplift humanity, safeguarding our privacy rather than undermining it. With the infusion of this funding, we are fast-tracking our dedication to constructing a blockchain centered around humanity, empowering every individual with sovereignty over their digital identity,”

said Terence Kwok, Founder of Humanity Protocol.

Worldcoin’s Regulatory Hurdles

Worldcoin faces regulatory challenges globally, with suspension in Kenya and an ongoing investigation in Hong Kong due to data privacy concerns. Additionally, Worldcoin has temporarily halted Orb verification services in France, Brazil and India. According to Worldcoin, in India, the World App continues to see widespread adoption, but Orb-verified proof of personhood services have been temporarily scaled back as the protocol seeks to develop a safe and orderly process to meet the demand for World ID.

This regulatory scrutiny presents an opportunity for projects like Humanity Protocol to step forward. Moreover, they prioritize user control over data. They employ privacy-enhancing technologies, aiming to build trust in data management. Additionally, the market is ripe for solutions that balance the need for identity verification with fundamental user privacy protections.

WLD/USD daily price chart. Source. TradingView

Despite regulatory scrutiny, Worldcoin recently reached its all-time high of $9.33 on Feb 25, 2024. With a current price of $8.29 and a market cap of $1.15 billion, its volume and market cap ratios show bullish momentum despite challenges.

The investment in Worldcoin’s rival signals a broader trend towards decentralized identity solutions that place user privacy top of mind. As the Web3 ecosystem matures, backing is clearly flowing towards projects that champion principles like data sovereignty and individual agency. Above all, Humanity Protocol’s newly secured funding positions it as a major contender in the race to define the future of secure and accessible digital identities.

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Filed under: Bitcoin - @ February 29, 2024 4:26 am