Chapter 1: Understanding Worldcoin

Worldcoin might represent one of the most significant advancements in finance since the advent of Bitcoin, yet it remains under-discussed.

Worldcoin is a cryptocurrency initiative that merges biometric verification with decentralized financial systems. The process begins with an iris scan, which acts as a verification method for user identity. Once registered, users can earn Worldcoin's native token, WLD.

In theory, Worldcoin addresses two critical challenges in the era of artificial intelligence (AI): distinguishing humans from machines and offering a means for individuals to earn income as automation progresses.

However, the real-world implementation of such a comprehensive system is unprecedented. Integrating biometric data with digital financial records could lead to unforeseen repercussions that society may not yet be equipped to manage.

This analysis will explore the mechanics of Worldcoin, its operational framework, and the reasons for skepticism surrounding it. For those unfamiliar with Worldcoin, it’s time to take notice.

Worldcoin aims to revolutionize access to the global economy, ensuring that individuals from all backgrounds can participate. Founded in 2019 by Sam Altman, Alex Blania, and Max Novendstern, the project strives to create the largest human identity and financial network in the world.

The ambition behind Worldcoin is to foster a more human-centric economic model amid the rise of AI.

The project is built on Optimism, a Layer 2 scaling solution atop Ethereum, utilizing what it calls Proof of Personhood to facilitate user transactions.

Worldcoin posits that Proof of Personhood is vital for establishing a digital identity in a time when traditional verification methods are becoming insufficient due to rapid advancements in AI.

To verify individual identity, Worldcoin employs an iris scan via a device known as an Orb. This method is akin to Apple’s FaceID, but with a crucial difference: while FaceID unlocks a personal iPhone, the Worldcoin founders envision their iris scanning technology being implemented broadly to differentiate humans from machines. A World ID not only identifies ownership of digital assets but also signifies a user's uniqueness in the global landscape.

Worldcoin’s vision is that its cryptocurrency ecosystem will serve as a foundation for equitable participation in the global economy. The project has introduced its token, WLD, which users can earn through their World ID or purchase from exchanges like Binance.

Currently, users from the United States are not included in the project. Although they can create a World ID, they are ineligible to buy WLD tokens or receive token distributions.

As of now, around 2.2 million “unique humans” are registered on the platform, a substantial increase from half a million in mid-2022. The creators of Worldcoin assert that a biometrically verified digital identity is crucial for any forthcoming AI-driven Universal Basic Income (UBI) initiative.

In a public letter from July 2023 announcing Worldcoin's launch, Altman and Blania articulated their motivations for the project:

“We believe Worldcoin could drastically increase economic opportunity, scale a reliable solution for distinguishing humans from AI online while preserving privacy, enable global democratic processes and eventually show a potential path to AI-funded UBI.”

The core idea behind a biometrically verified financial system is to promote equitable wealth distribution through a Universal Basic Income initiative.

Many Americans perceive UBI as a government-funded welfare scheme, akin to Social Security or Medicare, which could lead to increased taxes. Consequently, skepticism towards UBI is prevalent among the populace.

In reality, UBI might be funded by large corporations, which have historically exploited tax loopholes to amass wealth. Alternatively, it could stem from AI companies that replace human labor and diminish earning potential. Ultimately, the source of funding is less significant than the operational structure of a UBI-based economic system.

This is where Worldcoin aims to establish the necessary infrastructure for UBI. World ID holders are rewarded for their participation, and the project’s founders have indicated that users may receive weekly distributions of WLD tokens.

An obvious incentive exists for early adopters: the sooner one joins, the sooner they can start accumulating WLD tokens. If the value of WLD increases, early users could reap significant rewards, similar to early Bitcoin investors.

From a global perspective, many regions still rely on cash economies, and a lack of bank accounts is common. The transition to cryptocurrency presents a substantial opportunity, particularly for residents in the Global South, many of whom possess smartphones. This situation underscores the need for a unique human identification protocol alongside a widespread AI-funded UBI initiative. It’s not solely about proving ownership of digital assets; it’s about establishing individual identity and authenticity in the global digital economy.

While Worldcoin appears promising in theory, it raises several potential concerns.

Worldcoin claims to be a solution to numerous global economic issues, including wealth redistribution and identity verification. However, it also presents risks.

The first concern relates to equity. Worldcoin plans to distribute payments to World ID holders weekly, simulating a potential UBI model. Early adopters will receive immediate rewards for their participation, yet successful implementation of UBI necessitates a fair distribution protocol. Questions arise about whether allocations will be determined by merit, economic contribution, or reparative justice. What seems just to one demographic may be viewed as unjust by another, which could exacerbate social tensions.

Regulatory issues also warrant attention. Worldcoin's founders assert that the project will be decentralized, encompassing hardware development as well. Orb Operators earn commissions for registering users, similar to early crypto miners setting up rigs. Without robust regulations, there's a risk that Orb Operators may develop dual-use devices, potentially storing iris scans on personal servers rather than just on decentralized databases.

The potential for misuse of new technology is a historical concern. For instance, Facebook Ads transitioned from a marketing tool to a mechanism for manipulating electoral data. The focus should be on preventing the misuse of technologies intended for beneficial purposes.

While Worldcoin aspires to empower individuals, it is simultaneously constructing a global financial system that governments traditionally control. Although a global digital ID could facilitate access to UBI, it might also restrict participation in the economy. Dystopian scenarios, reminiscent of narratives like The Handmaid’s Tale, could become reality, where access to essential services is contingent on a universal ID.

Newton’s Third Law of Motion states that every action has an equal and opposite reaction. This principle applies here; the pursuit of freedom could lead to increased risks of oppression.

Final Thoughts

Worldcoin launched in late July 2023 and is still in its nascent stages.

What distinguishes Worldcoin is its pioneering blend of decentralized finance with large-scale biometric verification. If successful, the founders anticipate that nearly every person on the planet will possess a World ID within a decade.

Venture capitalists and tech leaders are likely eager to tap into the vast data this could generate. The fusion of blockchain with biometric systems transforms commerce into a programmable mechanism.

The implications of this integration are significant.

On one hand, as Worldcoin’s creators suggest, programmable economics could pave the way for universal basic income. Current welfare systems are often inefficient and burdened with bureaucracy, making them prone to fraud.

Conversely, programmable economics can also restrict individuals’ ability to engage fully in the economy, as demonstrated by China’s social credit scoring system. This system evaluates individuals’ contributions to society, penalizing those who engage in behavior deemed undesirable.

As we contemplate Worldcoin’s future, it’s crucial to ask pertinent questions about the intended and unintended uses of World IDs. Although Worldcoin operates under a foundation, it is fundamentally a business, having secured $125 million in funding, led by Andreessen Horowitz.

While its intentions may be noble, the reality of capitalism prioritizes profit over altruism. The trajectory of Worldcoin will ultimately be shaped by investors rather than users.

Digital biometric identification is emerging, but large-scale adoption remains elusive. As we enter this new digital economic era, it’s vital to maintain a balance of curiosity and skepticism. Recognize the potential of these technologies while remaining vigilant about the inherent trade-offs.

Reflecting on the data we unwittingly surrendered to social media in the past, we must avoid repeating those mistakes now.

If you have engaged with my work before, you know I often raise questions about the unintended consequences of new technologies.

Worldcoin is still in its early days, making it difficult to predict its ultimate fate. Will the World ID succeed or fade away?

What intrigues you most about this project? What questions do you wish to explore before seeking an iris scan from an Orb Operator? Feel free to share your thoughts or inquiries about Worldcoin and its impact on the global economy.

Chapter 2: The Real Reason Behind Worldcoin's Biometric Initiative

Worldcoin's unique approach to biometric identity verification raises several concerns, particularly regarding privacy and data security.

In this video, we delve into the motivations behind Worldcoin's eye-scanning initiative and discuss the implications of biometric data collection.

Chapter 3: Is Worldcoin the Future of Cryptocurrency?

As Worldcoin gains traction, questions arise about its potential as a leading cryptocurrency.

Join us as we analyze the viability of Worldcoin in the crypto landscape and its prospects for growth.