In an AI-driven world, Sam Altman, the CEO of OpenAI and founder of Worldcoin, said the project’s goal is to establish “a global financial and identity network based on proof of personhood.”
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Regulators and privacy advocates are alarmed by the quick uptake of Worldcoin, an AI-centric identification project with a cryptocurrency of its own.
More than 5 million people, according to the project, have scanned their irises using a silver sphere that looks like a bowling ball.
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Users obtain online ID verification and receive 25 WLD, or about $115, in exchange.
The World App by Worldcoin had more than 10 million sign-ups by April 11.
In an AI-driven world, Sam Altman, the CEO of OpenAI and founder of Worldcoin, said the project’s goal is to establish “a global financial and identity network based on proof of personhood.”
But since its launch, privacy activists like Edward Snowden have harshly criticized Worldcoin.
The crypto community has not responded well to using blockchain technology and cryptocurrencies.
Worldcoin “blatantly contradicts the central ethos of cryptocurrencies – the core principles of anonymity and decentralization on which Bitcoin and its peers were founded,” said Vahan P. Roth, an executive board member at Swissgrams AG.
Authorities in a number of nations have prohibited the project, arguing that the gathering of biometric data poses a serious risk to privacy.
This begs the question: is the biometric data collection process used by Worldcoin actually harmful, or is it misinterpreted?
More sensitive and worrisome than other personal data is biometric data.
Biometric data is “largely unchangeable and difficult to obscure,” according to Rory Mir of the Electronic Frontier Foundation, underscoring the necessity of stringent safeguards and informed consent.
Authorities in Brazil, Germany, Kenya, South Korea, India, and South Korea started looking into Worldcoin’s business practices in 2023.
On March 18, 2024, Spain outlawed Worldcoin’s biometric data collection. On May 22, Hong Kong followed suit, ceasing operations because data retention for AI training was deemed unnecessary.
There have been reports of incomplete data and unapproved data collection, according to the Spanish Data Protection Agency (AEPD).
The National Court maintained the ban, putting the company’s financial interests second to data protection.
According to Christoph Schmon of the EFF, Worldcoin’s regulatory fate is probably bestowed upon Germany because of its headquarters, although European regulation permits cross-border enforcement of data protection.
In response, Worldcoin released the source code for its Orb program and added the data security feature “Personal Custody.”
The company still has to deal with doubts regarding the security and privacy of the biometric data it collects.
Worldcoin needs to show that it is committed to data protection and user empowerment in order to win back people’s trust. In order to demonstrate the safety and privacy of its product, Worldcoin must address concerns, and regulators must improve their knowledge of these technologies to prevent unwarranted bans.
While not answering every question, Worldcoin stressed that it was open to communication and continued clarification in order to allay any misconceptions.
The main problem still stands with Worldcoin’s need to establish credibility and show that its protocol is reliable and useful.
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