The UK data watchdog is launching an inquiry into Worldcoin, a crypto project co-founded by Sam Altman of OpenAI. Worldcoin uses iris scanners to confirm user identities and recently experienced a surge in value after being listed on major exchanges like Binance.
Further investigations to take place
The data regulator has stated that they will be investigating further, but no specific details have been released.
Worldcoin is described as a privacy-preserving ID system with a digital token reward for users simply for being human.
This summer and fall, the project aims to deploy 1,500 iris-scanning Orbs across 35 cities worldwide to meet the global demand for identification.
At the time of writing, WLD is valued at $2.32, with a 2.8% increase in the last 24 hours. Yesterday, Vitalin Buterik, the founder of Ethereum (ETH), expressed his concerns about the privacy risks of the new crypto project, Worldcoin.
Buterin has identified four major risks, with privacy being the most prominent. According to him, the registry of iris scans may reveal information, and in case someone else scans your iris, they can cross-check it with the database to determine whether or not you have a World ID. Iris scans may potentially reveal more information.
Potential issues with Worldcoin
Vitalik Buterin raised concerns about the risks associated with Worldcoin’s Proof-of-Personhood (PoP) system, including privacy, accessibility, centralization, and security.
To address these concerns, he proposed an alternative solution.
The PoP system aims to establish a user’s uniqueness in a decentralized manner, without revealing personal information or relying on a central authority. Its potential applications include preventing Sybil attacks by prohibiting multiple account creation, and facilitating event tickets, airdrops, and DAO voting.
To use the system, Worldcoin users download an app and scan their irises using a device called the “Orb.” The Orb confirms their humanity and generates a unique iris hash, which results in a one-of-a-kind “World ID” for each user.
