Worldcoin Crypto Explained: What Is It And How Does It Work?

Worldcoin Crypto Explained: What Is It And How Does It Work?

Introduction

The year of 2023 has been all about Web3, Blockchain, Data Science and Artificial Intelligence. Earlier in July, Meta launched its highly-anticipated microblogging platform 'Threads' as an alternative to Elon's X(formerly Twitter). The app became a hit and garnered over 2 million users in just 2 hours of its launch. However, later in the same month, OpenAI's CEO Sam Altman presented Worldcoin crypto, an AI-cum-blockchain driven project on July 24, 2023.

Worldcoin addresses the problem of personhood and identity, which is in peril today due to technologies like deepfakes and AI cloning. Moreover, the project aims to become the largest identity and financial public network by strengthening privacy and decentralization globally.

Let us learn more about Worldcoin, its components and its work along with understanding what the future holds for upcoming crypto projects like this.

 What Exactly is Worldcoin(WLD)?

Worldcoin Crypto is a new blockchain project co-founded by OpenAI's Chief Sam Altman, Alex Blania and Max Novendstern. The Worldcoin founders established Tools for Humanity, the parent organization of Worldcoin in 2019 as a step to revolutionize the world economy. And rolled out the final product after 3 years of its Beta phase on July 24, 2023.

Worldcoin is an open-source and decentralized blockchain network developed on the Ethereum Layer 2 solution, which allows it to operate independently and securely. Moreover, the platform leverages the concept of 'Proof-of-Personhood' (PoP) – a mechanism that determines the humanness of a person differentiating them from AI and robots.

The Worldcoin founders believe that if successful, Worldcoin can emerge as a new face of the global economy with reliable solutions for differentiating humans from AI while preserving privacy at the same time.

Components of the Worldcoin Crypto

The new iris-scanning cryptocurrency protocol combats digital fraud with its 3 components – World ID, Worldcoin App and WLD. 

 World ID

In simple words, World ID is a digital passport for the users to prove their humanness. The World ID is a privacy-preserving digital identification code generated in the World App once you verify yourself at an Orb.

 World App

Worldcoin App is a World ID-compatible application developed by Tools for Humanity, that allows payment, transfer and purchase of digital assets globally. However, to do so, you must download the application from the Play Store or the App Store, Create an Account and Verify yourself at an Orb.

 WLD

WLD is the native token of Worldcoin. Initially, it is rewarded for verifying your personhood at a Worldcoin Operator location. However, you can purchase WLD on Binance and other crypto exchanges. The current price of WLD on Binance is trading around $1.09784 with a market cap of $141.14 Million.

 How does the Worldcoin Crypto work?

Before understanding the working of Worldcoin, it is important to learn about the Proof-of-Personhood mechanism and Orb, the iris-scanning device.

Proof of personhood (PoP) is a mechanism that establishes a person's humanness and uniqueness and is the underlying technology behind the World ID.

An Orb, like a finger scanner, is a spherical biometric device that scans the iris patterns of a person. Just as fingerprints, iris patterns are also distinct among humans and therefore they can be a crucial distinguishing parameter.

 So, Worldcoin works in 3 three steps –

1. Create an account on the World App and find an Orb near you, which is available in facilities across 35+ countries.
2. An Orb verifies you as a unique human and generates a World ID. After the ID is created, the Orb deletes the biometric data stored.
3. After verification, you get a wallet in the World App, which you can use to transfer, purchase or make payments of digital assets like Bitcoin, Ethereum and USDT. Also, a verified user can claim 1 free WLD token weekly.  

 Conclusion

In this age of generative AI, the creation of human-like fake images and videos called deepfakes has become popular leading to fraud. Therefore, the Worldcoin crypto project implements a Proof-of-personhood methodology to differentiate humans from robots and provides an identification code that works globally. Worldcoin provides a unique ID to its users which proves their humanness and provides free shares of WLD, its native token as a reward.

However, with rising criticisms, the journey for Worldcoin to become a successful crypto project looks difficult with roadblocks in between.

Frequently Asked Questions

1. What is worldcoin crypto?

Worldcoin Wikipedia states that it is an eye-scan-based biometric cryptocurrency project that leverages Artificial Intelligence and Proof-of-Personhood mechanisms to prove a person's humanness. The three aspects of the Worldcoin ecosystem are World ID, World App and Worldcoin crypto token WLD.

2. What is the purpose of the worldcoin project?

The worldcoin protocol aims to establish itself as the most promising global financial and identity public network, open to every person regardless of country or economic background.

3. Who owns worldcoin?

Worldcoin crypto is a decentralized open-source project intended solely for the developers, economists and other participants committed to its expansion and growth. However, the Worldcoin Foundation and a San Francisco-based company Tools for Humanity are responsible for the maintenance and decentralization of the network.

4. How do I get my World ID?

First, install the World App from the Play Store or the App Store. Then follow the instructions to find a local Worldcoin Operator who will verify your personhood. After verification, you will receive your World ID in the World App.

5. Is worldcoin trustable?

However it's backed by the notable figures in tech, privacy concerns and data threats have been flagged by the experts.