What is Sam Altman’s Worldcoin initiative and how does it works? Know here full information | Tech News
 "Sam Altman")
Sam Altman (Photo: Bloomberg)
Sam Altman’s Worldcoin initiative, which aims to differentiate humans from AI or robots through iris scans for cryptocurrency transactions, is facing skepticism from governments around the world, according to a Wall Street Journal report.
What is Worldcoin?
Worldcoin is an ambitious initiative co-founded by OpenAI CEO Sam Altman, aimed at creating a global identity and financial network that leverages biometric data, specifically iris scans, to establish a unique digital identity for individuals. Conceived in July 2023, the project seeks to build what it describes as the “world’s largest identity and financial public network” that allows users to participate in the digital economy by claiming a stake through a cryptocurrency known as Worldcoin (WLD).
Worldcoin has conducted scans and verifications for over six million individuals in nearly 40 countries. Additionally, users receive permanent codes in a digital ‘World ID’ passport and a payment in Worldcoin’s WLD cryptocurrency.
How does it work?
At the core of Worldcoin’s operation is a device called the ‘Orb’ that scans participants’ irises to collect biometric data. This data is used to create a World ID, which functions as a digital identity for users.
Upon scanning, individuals receive WLD tokens, which they can use for transactions or hold as an investment. The process is termed ‘proof of personhood’, designed to prevent users from registering multiple times for tokens by ensuring each individual can only claim their unique identity once.
Worldcoin aims to facilitate financial inclusion, particularly in regions with limited access to traditional banking systems. The total value of WLD is approximately $15 billion, with Worldcoin holding 97 per cent of it. This means that the market price is influenced by a limited amount of currency in circulation.
Which nations have opposed Sam Altman’s Worldcoin?
Worldcoin, which is incorporated in the Cayman Islands, has faced significant regulatory challenges across various regions. It has been raided in Hong Kong, banned in Spain, fined in Argentina, and is under criminal investigation in Kenya. Additionally, its operations in the European Union (EU) are under scrutiny, with a potential ruling on its future in the region pending.
Governments are particularly concerned about how Worldcoin manages user data, trains its algorithms, and ensures that it does not capture images of children.
In response, Worldcoin asserts that its technology is entirely privacy-focused. The company claims that its orbs erase all images post-verification, and that iris codes do not contain any personal information unless users explicitly allow Worldcoin to use their scans for algorithm training. The anonymised codes and images are stored on encrypted servers.
Worldcoin under global scrutiny
In Kenya, where Worldcoin quickly amassed 500,000 sign-ups within the first three months of its launch, a criminal probe has been initiated regarding its biometric data collection practices. The Kenyan parliament also conducted a public inquiry into the matter, during which Altman and co-founder Alex Blania provided testimonies. The duo also met with Kenyan President William Ruto in California last year.
Hong Kong’s ban on Worldcoin was prompted by revelations that the company was retaining iris images for up to a decade. In Argentina, investigations were launched due to concerns about the company’s user terms, while Spain accused Worldcoin of large-scale scanning of children. In Bavaria, Worldcoin operates a data-processing subsidiary, but the EU has now commenced its own investigation into the company’s practices.
First Published: Aug 19 2024 | 5:07 PM IST
