Date : 25/08/2023

Relevance – GS Paper 3 – Science and Technology - Developments and their application and effect in everyday life

Keywords – WorldCoin, biometric sign-up, identity, cryptocurrency, privacy concerns

Context –

• OpenAI, an artificial intelligence company, has recently introduced a project known as Worldcoin. The project aims to create a global identity and financial network accessible to all, irrespective of nationality, background, or economic status.
• It has garnered significant attention with over 2 million sign-ups worldwide within a week of its official launch on July 24. What sets WorldCoin apart from other cryptocurrencies is its innovative use of biometrics for sign-ups, raising concerns in countries such as France, Germany, and Kenya.

The WorldCoin Protocol: Identity and Financial Network for All

WorldCoin's primary objective is to establish a revolutionary and expansive identity and financial public network, accessible to each and every individual across the globe, including those without a passport or any legal identification. By providing a distinct and validated identity to all, WorldCoin aspires to facilitate universal access to the global economy. This cutting-edge protocol is built upon three fundamental components, namely the World ID, the Worldcoin token (WLD), and the World App, each contributing to the platform's seamless functionality and widespread adoption.

The World ID: Unique Personhood Verification

The World ID is a digital identity that serves as proof of an individual's unique personhood. To obtain a World ID, users are required to undergo an in-person eye scan at designated locations using a device known as the 'orb.' This biometric scan verifies that the individual is a real human and prevents duplication of IDs. Notably, having a World ID is not mandatory for accessing the World App or the tokens, but it offers certain incentives to users.

Worldcoin in India

In the Indian context, the organization stated that the success of biometrics has been demonstrated by the Aadhaar system. Worldcoin has identified 18 sites across India, primarily in Delhi, Noida, and Bangalore, where operators of the Orb are engaged in the process of eye scanning for individuals.

The Worldcoin Token (WLD): The Cryptocurrency

Worldcoin introduces its native cryptocurrency called WLD, which users can access through sign-up or other methods. The protocol enthusiastically encourages eligible verified users to claim two free WLD tokens per week, providing them with a generous initial stake in the cryptocurrency. The value of WLD on the renowned crypto exchange platform CoinBase was recorded as 0.57 rupees as of August 1, 2023.

The World App: Global Payment and Transfer

The innovative World App serves as a multifunctional platform for smooth payment, purchases, and transfers, supporting both digital assets and traditional currencies. Users can effectively harness the World ID or WLD tokens to effortlessly conduct seamless transactions, all while maintaining complete anonymity. The formidable synergy between state-of-the-art biometrics and blockchain technology ensures the utmost security and genuine anonymity throughout interactions on the platform.

Sign-ups for WorldCoin's World ID: The Eye Scan Process

For acquiring a World ID, users must undergo an eye scan using the advanced orb device. As an extra incentive, WorldCoin generously offers users a certain amount of WLD tokens for free upon sign-up. The company has remarkably expanded its 'orbing' operations to an impressive 35 cities across 20 countries. It is worth noting that during the successful beta trials, some users in Africa and Asia delightfully reported receiving larger amounts of WLD tokens, which has sparked intriguing discussions about consistency and transparency.

Data Collections and Privacy Concerns

WorldCoin's meticulous biometric sign-up process involves the secure collection of highly sensitive data, such as intricate iris scans. The company confidently asserts that all images captured by the state-of-the-art orb device are promptly and securely deleted, ensuring utmost privacy. Only encrypted numerical representations of key features are thoughtfully retained to generate unique individual codes. However, despite these robust assurances, certain meticulous regulators and dedicated privacy watchdogs have understandably raised legitimate concerns about the extensive large-scale processing of biometric data and the need for well-established analysis in the field of financial information transfer.

Regulatory Scrutiny and Global Impact

The project's cutting-edge eye-scanning technology has sparked thorough investigations by diligent German data watchdogs and garnered inquisitive enquiries from meticulous data regulators in both Britain and France. Kenya's highly regarded Office of the Data Protection Commissioner has explicitly called for unwavering vigilance concerning meticulous data-processing law compliance. WorldCoin's visionary foundation has confidently assured an unwavering commitment to diligently meeting all necessary regulatory requirements and ensuring unwavering protection of individual privacy.

Conclusion

WorldCoin's emergence as a novel cryptocurrency project with biometric sign-ups has drawn widespread attention. By offering a unique digital identity and financial network to billions, it seeks to democratize access to the global economy. However, concerns surrounding data privacy and regulatory compliance must be effectively addressed to ensure the successful and responsible implementation of WorldCoin's ambitious vision. As the project evolves, striking a balance between technological innovation and individual privacy will be paramount in shaping its impact on the world economy.

Source – Indian Express