- CoolWallet now supports Worldcoin’s WLD token.
- Worldcoin, backed by OpenAI’s Sam Altman, aims for decentralized human identities.
- The Worldcoin Orb scans irises to create unique digital IDs.
- WLD token rewards users and plays a role in Worldcoin’s governance.
- Worldcoin emphasizes user privacy and data security in its system.
CoolWallet recently rolled out support for WLD, the new and slightly controversial crypto asset by Worldcoin that skyrocketed in value since its July 2023 launch. The project has been making huge waves due to its connection to OpenAI founder Sam Altman and its ambitious mission to create decentralized identities for humans to distinguish them from AI bots.
In our tech-savvy era, where every click matters, ensuring our digital identity remains uncompromised is a challenge. As we navigate this vast online universe, the quest for a foolproof identity system becomes crucial. Here’s where Worldcoin, with its futuristic vision, steps in, aiming to redefine our digital footprints. The project was launched in 2021 (read our previous blog post on it here) and its Minority Report-style process of scanning people’s eyeballs as part of its Proof-of-Personhood mission with its Worldcoin Orb device has raised many eyebrows and objections.
Here’s an overview of the project and the WLD token, which is an ERC20 token on the Ethereum and Optimism chains that is now natively supported on CoolWallet Pro.
What in the World Is Worldcoin’s Big Idea?
Imagine a world where your eyes become the key to your digital self. Worldcoin’s Orb does just that, capturing the unique patterns of your iris and translating it into a digital ID. This World ID, encrypted and stored on a blockchain, becomes an unalterable testament to your identity. And with the Worldcoin app bridging various blockchains, your World ID becomes your passport to a multitude of online services.
What is Worldcoin (WLD)?
WLD is the ERC20-powered native crypto asset of the Worldcoin project, available on the Ethereum and Optimism chains, which was conceived by visionaries Sam Altman and Alex Blania, who recognized the potential of blockchain technology in reshaping the digital identity landscape. The project has raised over $115 million in its latest Series C round.
With the establishment of the Worldcoin Foundation, they embarked on a mission to create a decentralized, secure, and universally accessible identification system. Backed by significant financial investments, Worldcoin unveiled its native cryptocurrency, further solidifying its position in the digital realm. People who sign up for the project and get their eyeballs scanned get 25 WLD tokens, currently worth around $50, which is worth a lot in some of the third-world countries Worldcoin has been targeting.
The World of Worldcoin: How Does It Work?
1. World ID and the Orb
At the core of Worldcoin’s system is the World ID, a unique digital identifier for each individual. To generate a World ID, Worldcoin uses a device called the Orb. This device is designed to scan an individual’s iris, which is unique for every person, much like a fingerprint. Once scanned, the Orb processes the iris pattern and converts it into a unique identification code known as the IrisCode. This code is distinct and is not linked to any other personal information of the user.
2. Data Privacy and Security Process
After the scanning process, all iris images are deleted to ensure user privacy. The generated World ID is then added to the Worldcoin blockchain. This decentralized ledger ensures that the World ID remains secure and immutable.
3. World App
Worldcoin has an application known as the World App, which facilitates interactions within the Worldcoin ecosystem. Users who undergo the iris scanning process and obtain a World ID are rewarded with Worldcoin’s native cryptocurrency, the WLD token.
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4. Worldcoin Token (WLD)
The WLD token is an integral part of the Worldcoin ecosystem. Users who participate in the iris scanning process are rewarded with WLD tokens, which can be used within the Worldcoin network. Beyond its utility as a reward mechanism, the WLD token plays a crucial role in the governance of the Worldcoin protocol, allowing users to have a say in its future direction and development. This token can be used within the Worldcoin network and also plays a role in the platform’s governance. Users can utilize their World ID whenever they need to prove their identity.
What is Proof of Personhood and Why Is It Important?
Proof of personhood is a cutting-edge concept that aims to validate and verify the unique identity of individuals, especially in digital ecosystems. The primary goal is to ensure that each participant or user in a system is a genuine human being and not a bot, AI, or any other form of automated entity.
According to the Worldcoin whitepaper, this concept is crucial for various reasons:
- Preventing Sybil Attacks: In digital networks, a single entity can pretend to be multiple users (known as a Sybil attack). By ensuring proof of personhood, systems can prevent such attacks by verifying that each user is a unique individual.
- Fair Distribution: In platforms like Worldcoin, where users are rewarded with tokens, proof of personhood ensures that rewards are distributed fairly among genuine users and not hoarded by bots or automated systems.
- Authentic Participation: For systems that rely on user participation, like voting or governance protocols, proof of personhood ensures that decisions are made by real humans, preserving the integrity of the process.
In the context of Worldcoin, the platform uses the unique patterns of the human iris as proof of personhood. By ensuring that each World ID corresponds to a real person, Worldcoin can establish a global financial and identity network based on genuine human participation.
Why the Big Fuss?
Worldcoin’s promise is undeniable. By decentralizing identity verification, it offers a shield against the vulnerabilities of centralized systems. And in an age where AI blurs the lines between reality and simulation, Worldcoin’s human-centric approach is a breath of fresh air.
Worldcoin addresses many of the challenges associated with centralized identification systems.
By leveraging blockchain technology, it ensures the security and privacy of users’ data. Furthermore, with the rise of AI-generated content, Worldcoin’s ability to differentiate between human and machine-produced content could become invaluable.
Yet, it’s not without its skeptics. The very idea of entrusting biometric data to a system, however secure, raises eyebrows due to the potential for abuse. Worldcoin, in response, emphasizes its commitment to user privacy and the use of advanced technologies like zero-knowledge proofs to ensure data security.
Worldcoin’s eyeball scanning stokes fear of a dystopian future where AI rules the world and you don’t know whether you’re talking to a software program or a person. It also rightly raises concerns about privacy rights in the Internet of tomorrow and what big companies and governments can do with your biometric data. However, it’s clear now that we’re in the Age of AI and that it will be near impossible to stop, therefore the need to prove your personhood in both Web2 and Web3 will eventually become all but unavoidable. It’s up to us to fight over how much we give up in terms of privacy in the process.
CoolWallet – The Transparent Worldcoin WLD hardware wallet
Whether Worldcoin and WLD will succeed, only time will tell, but it’s hard to bet against visionaries like Altman, no matter what you think of him. Whether you decide to buy WLD or you don’t (and the jury is still out on whether it’s a worthy investment, so do your own research!), just know that you can keep it safe in CoolWallet, the transparent Web3 hardware wallet that always respects your privacy and never collect your personal data. We also keep our secure element source code open-source in order for it to be verified by third parties at all times.