The rise of AI-generated content and the challenge of distinguishing it from human-created work foreshadows a future where identifying real humans becomes increasingly difficult. However, we can leverage blockchain technology to create a unique database of information about real individuals that could serve as a verification tool when faced with this issue.
These two sentences are a simplified restatement of the thesis of Sam Altman’s latest venture, Worldcoin.

However, Worldcoin’s public launch has triggered mixed reactions, successfully blending excitement with concern. And this scrutiny has led to more skepticism than support despite the project’s obvious potential benefits.
A prominent concern is that Worldcoin’s core promise to establish the humanity of every individual on the planet is laudable, but many other projects with similar goals have tried to achieve this same feat before but failed. So far, the project’s team has not convinced their critics that they can succeed.
The criticism leveled at the project goes beyond this, and this article will examine the reasons for many of them.
How Does Worldcoin Work?
Worldcoin aims to differentiate humans from AI by having them scan their irises, on which it will create a unique identification tag, a “WorldID.” This concept of an iris scan to confirm identities aligns with familiar biometric verification methods such as face or fingerprint recognition technology.
To obtain these WorldIDs, you need to visit a Worldcoin Operator and scan your iris with a custom-made device called the Orb.

The Orb is a spherical-shaped device that takes pictures of irises using visible and near-infrared light. It utilizes AI-driven neural networks, infrared cameras, and sensors to scan and record an individual’s irises. With these iris biometrics, the Orb confirms a person’s identity based on their distinctive traits and generates a digital World ID.
Another integral part of the project is the Worldcoin native token, WLD.
When Worldcoin launched, its native token, WLD, surged in value; going from $0.15 at launch to an all-time high of $5.29. It now hovers around $1 and was at $1.04 at the time of writing.
Although the project team has indicated that it would have other use cases, currently, the token is only distributed as a reward to individuals who sign up for a WorldID.
Notably, the project is the brainchild of Sam Altman, current CEO of OpenAI (the creator of the popular AI tool ChatGPT), along with Alex Blania, Max Novendstern, and Tools for Humanity, an advisory body for the project.
With sign-ups already exceeding two million, the project team has announced that it is expanding its iris-scanning operations to 35 cities across 20 countries.
From WorldIDs to Universal Basic Income: Worldcoin’s Game-Changing Possibilities
The immutability and transparency of blockchain make the concept of a “WorldID” compelling. These blockchain-based WorldIDs are reliable ways to tell real humans apart from AI-powered chatbots and avatars online. And also curb fraud among humans across various processes.
Picture WorldIDs as your personal passports or ID numbers issued by governments. But, unlike government IDs, WorldIDs are decentralized and not controlled by a central authority.
When you must share your ID or passport number, your WorldID will be what you would share, and the service provider will plug it into the open and accessible database and confirm your identity.
But it doesn’t stop there; Worldcoin could help achieve equality in resource allocation for everybody. WLD and WorldIDs have the potential to scale a universal basic income (UBI) program in a practical manner.
As discussed earlier, WLD is expected to do more than just be a reward token. In a future where AI has fully matured and exceeded human productivity levels, there will be an abundance of wealth available to every human. Altman envisions the WLD token as a means of promoting financial empowerment for billions in underserved communities, ensuring this wealth is distributed equitably among everyone rather than benefiting a select few.
Why is Worldcoin Under Fire?
The possibilities that Worldcoin presents are indeed remarkable, but so are the criticisms and challenges it must confront to convince a substantial number of people to join its vision for the future.

Here are some the problems that have been identified in the project’s execution:
Technical and Scalability Concerns
A significant question has been raised about how Worldcoin plans to scale its iris-scanning infrastructure to meet potential demand.
To obtain a World ID, you need to visit an Orb operator, scan your irises to confirm your identity that you are human, and receive one WLD for signing up, along with an extra 25 WLD as a new user bonus.
Right now, there are just 1,500 Orbs for a global population of over seven billion. Even with increased Orb production, it would take a while to sign up their intended number of people.
Though the project team has announced plans to incorporate third-party agents, the concerns about how effective the underlying process is to cater to a potential 7 billion people still remain unaddressed.
Marketing Concerns
The Worldcoin team has drawn criticism for their aggressive sales strategies, such as incentivizing Orb operators for each successful registration.
An MIT Technology Review revealed deceptive practices used by Worldcoin representatives to lure participants in countries like Indonesia, Ghana, and Chile. The investigation exposed significant gaps between Worldcoin’s public emphasis on privacy protection and the real experiences of its users. MIT discovered that the company’s representatives engaged in deceptive marketing, gathered more personal data than disclosed, and did not secure meaningful informed consent.
Privacy and Centralization Concerns
Critics worry that Worldcoin’s iris scans might be misused to track individuals. The fear is that scanning irises could allow others to cross-reference them with a biometric database to verify your WorldID. There are even concerns that even authoritarian governments could exploit this data for their selfish purposes.
Ethereum’s Co-Founder, Vitalik Buterin, pointed out a lot of work has to go into ensuring the Orbs were made without security flaws or backdoors because this potentially leads to centralization.
According to Buterin, without verification of the Orb’s production, the project owners might be able to introduce a backdoor and do all sorts of things, including generating fake human identities.
Regulatory Issues
Though Worldcoin is unavailable in restricted regions and the US, its unclear data management and governance structure are at odds with anti-money laundering (AML) and know-your-customer (KYC) laws in many jurisdictions.
On August 2, 2023, Kenya’s Interior minister, Kithure Kindiki, announced the suspension of the project and other related activities until public agencies confirm no risks are present. He said the government has launched investigations to determine whether the project follows the required data’s safety procedures and how it intends to use the data.
Similarly, the UK’s Information Commissioner’s Office recently declared an inquiry into WorldCoin’s data management practices. The German privacy watchdog, Bavarian State Office for Data Protection (BayLDA), reportedly started investigating Worldcoin in November 2022 due to concerns about its data collection process. Michael Will, the BayLDA President, expressed worries that the technology isn’t proven and could pose risks for users.
Meanwhile, France’s National Commission of Informatics and Liberty has found Worldcoin’s data collection methods legally questionable. The regulatory body raised doubts about the legality of the collection and storage conditions of biometric data.
Data privacy watchdogs, particularly in Europe, are concerned about Worldcoin’s data collection methods, chiefly because of consent issues. Registering for a World ID implies agreement to data collection, but the project appears to fall short of European law’s “explicit consent” requirements. Worldcoin lacks a detailed explanation of how collected iris data will be used and stored.
Till the time of writing, Worldcoin has not released a comprehensive policy that addressed the raised privacy concerns. This fallout could lead to governments banning Orbs in their countries.
Fraud Concerns
Some reports have suggested that there are fraud cases connected to Worldcoin’s ID system, with claims of a black market for iris scans. Fraudsters allegedly purchase these scans to fraudulently claim coins from Worldcoin rewards.
These reports amplify concerns that the project could become a target for criminals, akin to data breaches in other major companies. Privacy experts have pointed out that biometric data is already being sold in countries like China, with the possibility of this practice expanding to other areas.
In Conclusion
Worldcoin has become a focal point for numerous criticisms, likely due to its seemingly incredible promises and the mixed track record of similar projects that came before it.
The criticisms are valid as they highlight uncertainties that could make it harder to achieve its aims.
However, the Worldcoin project is barely three months old. It’s premature to draw any definitive conclusions about its future. Only time will reveal whether it can surmount the challenges it faces and develop a sustainable solution to the problems it aims to tackle.
Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.
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