Worldcoin launches its decentralized token, promising privacy-preserving online human identification, amid diverse reactions from the crypto community.

The high-profile cryptocurrency project, Worldcoin, has announced the release of its new ecosystem token. This move is set to revolutionize online identity verification by offering a decentralized and private solution. The groundbreaking initiative is a result of the concerted efforts of Sam Altman, OpenAI CEO, and the Worldcoin team. Since its launch on July 24, the project has been a subject of passionate debates across the crypto community and Silicon Valley. Despite the controversial reactions, the primary objective of Worldcoin remains the same: to resolve income inequality and streamline online identity authentication.

Worldcoin’s Strategy: Offering a Global Digital Passport

First introduced on March 14, Worldcoin presented a waitlist for its Software Development Kit (SDK). According to the development team, the World ID aims to be a global digital passport, conveniently storable on a user’s phone. This unique approach would allow users to prove their human identity without revealing personal details to online platforms, such as phone numbers.

In its next major move on May 8, Worldcoin launched its gas-free crypto wallet, which was exclusively available to verified humans. Users could access the advantages of gas-free transfers by registering for a World ID, which required a phone number or an iris scan. Importantly, the developers clarified that the data provided by the users would not be stored. Instead, the system would use it to create a zero-knowledge proof to verify human identity without disclosing the underlying data.

Major Crypto Exchanges Eager to List Worldcoin’s Token

Upon Worldcoin’s token launch, numerous crypto exchanges showed interest in listing the token on their trading platforms. These included leading exchanges such as Binance, Bybit, OKX, Gate, and Huobi. However, as the crypto market buzzed with this news, blockchain security firm PeckShield detected a fraudulent Worldcoin token executing a rug pull.

Despite the mixed reactions and scam alerts, Worldcoin remained unfazed. On July 14, the project reported over 2 million sign-ups to its World ID project. By the token launch date, Sam Altman expressed his ambition to expand this number to 2 billion.

On May 25, Worldcoin secured $115 million to bolster its decentralized identification system and crypto wallet, named the World App. The project leverages the advanced artificial intelligence technology to propose a “decentralized, privacy-preserving solution” that empowers people to regain control of their online identities while securing humanity’s digital presence.

Mixed Responses

Worldcoin’s launch has drawn a mixed bag of responses from the cryptocurrency community. The receieved both enthusiasm and skepticism. 

To join the ecosystem, users are required to provide an iris scan through Worldcoin’s specialized Orb hardware devices. This step helps in generating a proof-of-personhood that is cryptographically secure. World IDs use zero-knowledge proofs to secure the underlying data, including biometric, Know Your Customer and Anti-Money Laundering data.

Vitalik Buterin Shares His Opinion

Vitalik Buterin, the co-founder of Ethereum, expressed his views on the Worldcoin launch in an extensive essay. In his response, Buterin touched upon the emerging concept of proof-of-humanity, highlighting the value it brings to solving anti-spam and anti-concentration-of-power issues. He further emphasized that decentralized systems like Worldcoin could avoid dependence on centralized authorities and minimize the disclosure of information.

Worldcoin, along with other identity solutions such as Proof of Humanity, BrightID, Idenam and Circles, believes that advancements in AI could blur the lines between humans and machines. Hence, there is a growing need for a universal basic income to protect human utility from potential threats posed by bots.

Community Reactions to Worldcoin’s Launch

Worldcoin’s token launch drew various reactions from high-profile personalities in the crypto space. Bitcoin advocate Anita Posch raised concerns about the centralized nature of the Worldcoin project and the amount of data it handles, suggesting it could be a potential point of failure.

Meanwhile, Twitter co-founder and Bitcoin proponent Jack Dorsey was critical of Worldcoin’s approach, suggesting that financial systems should not be owned by corporations or states.

In contrast, eToro founder Yoni Assia saw similarities between Worldcoin and his own GoodDollar digital universal basic income platform. Other industry leaders also chimed in, adding further diversity to the ongoing discourse on Worldcoin’s launch.

According to the Worldcoin white paper, the protocol was initially deployed on Polygon in its beta phase. The current version is running on the Ethereum mainnet using a scalable batching architecture through layer-2 protocol Optimism. As of July 14, sign-ups for Worldcoin’s World ID exceeded 2 million, marking a significant milestone for the project in its early stage.

The post Worldcoin Launches, Sparks Controversy appeared first on Crypto Academy.

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Filed under: Bitcoin - @ July 24, 2023 6:23 pm