- Worldcoin belongs to Sam Altman, the co-founder of OpenAI, ChatGPT’s parent company.
- The Orb uses multispectral sensors to scan your eye and generate a unique biometric identifier.
- Orb-verified users can claim a recurring grant of WLD tokens.
- Unlike other DAOs, Worldcoin uses a hybrid governance model that the World ID enables
Worldcoin made waves last year when it launched around June. But it quickly got into the bad books of several governments around the world. However, the project remained strong, with the development team sticking to the roadmap.
Today, Worldcoin is the largest DID project on the blockchain, boasting over 3 million IDs as of January 31, 2024.
In this article, we explore the vast and intricate world of decentralized ID by understanding how Worldcoin works.
What is Worldcoin?
Worldcoin is a blockchain protocol that aims to give ownership to every human being through digital identity.
The project is the brainchild of Sam Altman, who is also the co-founder of OpenAI, ChatGPT’s parent company. Worldcoin’s vision is to build the world’s largest identity and financial network as a public utility, giving everyone a stake in the age of AI.
The Worldcoin protocol is achieving its goal through a novel technological invention called the World ID. Through this technology, users can verify their humanness online (“Proof of Personhood”) while maintaining anonymity through zero-knowledge proofs.
???? Zero-knowledge proofs are cryptographic techniques that allow one party to prove something to another party without revealing any information other than the fact that the statement is true.
To obtain a World ID, Worldcoin you must first download the World App. Using the App, you can store, send, and receive WLD tokens, the native token of the Worldcoin protocol.
You have to verify your World ID (A.K.A proof of personhood) by visiting a physical imaging device called the Orb. The device uses multispectral sensors to scan the user’s eye and generate a unique biometric identifier.
The Orb encrypts the information and sends it to the Worldcoin protocol. where it is compared with the existing database of verified World IDs. If the identifier is new and valid, the user receives a World ID and a corresponding WLD grant.
The Orb then deletes the image of the user’s eye on-device after the verification process, unless the user explicitly consents to data custody.
The Orb verification ensures that no one can create multiple World IDs, thereby reducing the chances of fraud through impersonation. Malicious actors can’t use bots, AI algorithms, or other non-human entities to game the system to claim WLD grants or participate in the Worldcoin network.
Get a Voice on Worldcoin through WLD Token
WLD is the utility and governance token of Worldcoin. Built on the Ethereum blockchain, WLD is an ERC-20 token whose transactions take place on the Optimism L2 network.
Orb-verified users are can claim a recurring grant of WLD tokens, proportional to the total supply of WLD and the number of verified users. The WLD grant is intended to give every human a stake in the global economy and a voice in the Worldcoin network.
Grant recipients can choose to cash out this allocation or use it to participate in the governance of the Worldcoin protocol. WLD holders automatically get voting power to contribute to proposals that affect the development and direction of Worldcoin
However, Wolrdcoin governance is not be the typical DAO governance. Worldcoin uses a hybrid governance model that combines conventional “one-token-one-vote” mechanisms with novel “one-person-one-vote” mechanisms, enabled by World ID. This prevents whales with multiple wallets from hijacking the governance process.
The Worldcoin Foundation
The Worldcoin Foundation is the organization behind the Worldcoin protocol. As a non-profit organization, it oversees the development, research, education, and advocacy of Worldcoin. When Worldocin got into trouble with some governments because of the sensitivity of the data they were collecting, it was the Woldcoin Foundation that fought that battle.
The Foundation is funded by a portion of the WLD supply that is allocated to the community treasury.
The Worldcoin Foundation’s goal is to support and grow the Worldcoin community until it becomes self-sufficient and decentralized.
Over time, the Foundation will gradually relinquish its control to the Worldcoin community as it matures and assumes more autonomy.
Future of Worldcoin and WLD Token
Worldcoin’s bold goal to revolutionize the way humans verify and reward themselves is a game changer in the age of Web3 internet.
The potential impact is enormous, as it could provide universal access to the global economy, empower users with ownership and governance, and foster a more human and inclusive society.
However, Worldcoin also has challenges such as the scalability of the Orb verification and the World ID network, regulatory compliance of the Worldcoin protocol in different jurisdictions, and the social and ethical implications of the World ID network on privacy and security.
WLD Token Soars To the Skies, Despite Challenges Facing Parent Protocol
WLD protocol has been rising and maintaining a decent volume ever since the Worldcoin went live. Recently the token hit an all-time high price of $9.03 amidst news of OpenAI releasing a new generative art AI model.
The market doesn’t feel Worldcoin challenges are warranted as everyone is queuing up to get a bag of WLD tokens.
As a first-mover in the DID industry, WLD is looking to again break its all-time high not long from now.
Conclusion
Worldcoin is still in its early stages of development and experimentation. It will require constant innovation, collaboration, and feedback from its community and stakeholders to overcome these challenges and realize its vision.
As the world embraces Web3, decentralized ID systems will be greatly needed, and Worldcoin has set itself up as a front-runner in this niche.