Blog | Cryptocurrency
Worldcoin: What is It and How Does It Work?
Is It a boom for mankind or an intrusive data harvesting tool?
Rich Dad Cryptocurrency Team
September 13, 2023
Summary
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What is Worldcoin?
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The pros and cons of using Worldcoin
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Is Worldcoin a good investment?
When most people think about using biometric data to scan people’s eyes, the movie Minority Report or other similar sci-fi films come to mind. It projects a frightening picture of tech controlling human life. However, this is our reality now. In this week's article, we take a close look at Worldcoin.
What is Worldcoin?
Are you acquainted with Worldcoin? If not, here’s a quick rundown: it's a digital currency developed by Sam Altman that rewards individuals for scanning their eyes. However, there's more to it than meets the eye.
Worldcoin is part of a World ID system designed to maintain digital privacy. It could be seen as an income program where people receive digital funds in exchange for existing.
The new World App has been introduced recently and requires users to visit a Worldcoin orb to have their biometric data scanned to obtain a World ID.
The reason using irises to identify people is so effective is due to the fact that each person's iris is unique, even among identical twins.
(this image is a screenshot from Wired)
So, what's the catch?
Sam Altman is the head of OpenAI, which is a research lab and company founded in December 2015 by Elon Musk, Sam Altman, Greg Brockman, Ilya Sutskever, John Schulman, and Wojciech Zaremba. You can thank Sam Altman if you've ever used ChatGPT or received AI-assisted search topic recommendations from your favorite app.
Although OpenAI has made great advancements in the field of Artificial Intelligence, many are concerned about its possible negative effects on humanity instead of positive ones. Employment-related issues raised questions on AI impacts; therefore, Sam Altman's idea of creating a Universal Income system through Worldcoin seems like it may lead us down a murky path.
Despite this concern, numerous people queued up to have their eyes scanned and get free Worldcoin payments for doing nothing but providing their biometrics. This undoubtedly demonstrates how appealing the concept is to most.
(this image is a screenshot from Reuters)
What do we know about Worldcoin?
The follow is based on the above Reuters article:
Sam Altman believes World IDs will be needed to differentiate human-produced content from AI-produced content.
It appears that Worldcoin isn't like any other digital currencies out there. It's not designed to "moon" and surpass Bitcoin. Instead, Sam Altman had the aim of crafting a system that would make AI-infused lives easier to manage. Whether that will turn out to be beneficial or not remains to be seen.
What does Worldcoin do with the data collected by the Orb?
The Worldcoins website states that they handle any information obtained in this way:
- Any photographs captured by the Orb are immediately deleted unless someone who has registered requests otherwise.
- No additional personal details (name, address, e-mail etc.) are needed.
- All that leaves the Orb is a message containing an iris code to guarantee uniqueness.
- Worldcoin will never sell anyone's personal information, including biometric details.
- All details are encrypted securely.
According to them, they don't use your iris scan for identification purposes but only for verification.
Who owns Worldcoin?
The concept behind the Worldcoin Foundation is for public possession rather than single ownership. In layman's terms, Worldcoin functions as a decentralized open-source protocol.
The Pros and Cons
We must consider the advantages and disadvantages of $WLD, WorldApp, and accessing a World ID before making an informed decision.
Pros:
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Existing userbase of over two million people.
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New users can gain 25 WLD tokens.
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Secure data encryption due to decentralization.
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Aimed at distinguishing between AI and humans.
Cons:
- Poor strategies used to gather new customers.
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Potential customers of the WorldApp should visit the Orb in person for activation.
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Not a stablecoin so open to volatility.
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Operating on a centralized iris scanning system.
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Need to provide biometric information which raises trust issues.
These points are just a few to consider; it's wise to seek out further sources and construct your own list of pros and cons before reaching a conclusion. Have a look at Coin Bureau’s YouTube channel for additional details.
Is This a Good Investment?
At the time of this article, September 15th, 2023, WLD is worth $1.33, with a one-day increase of 22.23%, a 7-day increase of 18.18% and an overall drop over the last 30 days of -15.70%.
So, does this mean Worldcoin is a good investment?
Well, that is extremely open to interpretation and largely depends on how you feel about it overall. Is it positive or damaging? A good option to consider for trading? At this point and from where we at Rich Dad sit, it looks less like a true monetary investment and more like investing in the sort of future you want to witness, or see come true.
If you envision a future for yourself and your family that involves a Universal Income System, keeping identities locked on blockchains and the need to separate AI from human interaction, the Worldcoin could very likely help make that a reality.
Where Can I Get Worldcoin?
For anyone interested in swing-trading WLD, you can use the links below.
Binance: WLD/USDT pairing
Uniswap 1st Pairing: WLD/ETH
Uniswap 2nd Pairing: WLD/USDC
More Information:
A Final Point
As Rich Dad Advisors, we don't necessarily back Worldcoin, but that doesn't mean it isn't a potential investment opportunity. That's for you to consider based on the due diligence you do on the token and how comfortable you feel with it. Risk management is always essential when investing in digital currency or any other asset.
As for biometric identification, it could lead to everyone needing to have one single World ID to access services. This would mean no more different profiles and accounts for various purposes - like having separate pen names for authorship or maintaining private and public social media profiles. It could result in us all having one public identity and needing to be watchful of our words, as our futures might be connected to our Word ID, leading us to self-restrict our thoughts and emotions so as not to offend anyone.
Currently, creating multiple accounts on several services is possible for whatever reason - say having multiple Amazon profiles or Facebook accounts - but as organizations become increasingly aware of AI bots, they may want to start using this system or one like it because there's nothing more valuable than personal data (which many marketing companies use for collecting).
Whether to place your money into this venture or not is ultimately up to each person's convictions. There is no correct answer; only data and deciding how valuable it is for you.
Original publish date:
September 13, 2023