LEARN 
October 12, 2024 
28 min. 
What if there was a way through which you can verify your identity online, that too without sharing too much personal information? That’s exactly what Worldcoin is trying to achieve. This token is a digital project with the aim to create a global identity system while also distributing a new cryptocurrency to everyone who identifies themselves.
The goal of this crypto project is to give everyone in the world access to financial services and a secure digital identity. It hasn’t been long since the project was launched. But still, it has already gained massive attention with over 10 million users signing up for the service. THis shows the increasing demand for privacy-focused identity solutions in the digital world.
Now, how do you think this project works? It basically verifies users’ identities by using a device called the Orb, which scans your iris (your eyeball). This way each person only gets verified once. After verification you’ll receive Worldcoin tokens (WLD) which you can store, trade or even use in various ways.
If you’re curious about what this system is, how it works and how it can change the way we use the internet, read ahead.
What is Worldcoin (WLD)?
Worldcoin is a new digital currency and a global identity project that is aiming to create a more inclusive and secure digital economy. The idea behind Worldcoin is to provide everyone on the planet with access to financial services and a decentralized form of identification regardless of where they are from and what their background is. It’s especially a game-changer in the regions where access to traditional banking is limited.
This project was founded by Sam Altman, the CEO of OpenAI, with co-founders Alex Blania and John Cogan. It operates on the idea that a universally accessible cryptocurrency can significantly reduce inequality and allow individuals to participate in the economy on a global level. And Worldcoin isn’t just another cryptocurrency, it’s a solution to the problem of digital identity verification altogether.
Now, Worldcoin is designed to operate as a decentralized network, which means that no single entity has control over it. Instead, it relies on a global network of users and validators to maintain the integrity of the system.
How Does the Worldcoin Project Work?
The Worldcoin project basically operates through a well-structured system built on three components: World ID, World App and lastly, the WLD Token. All three of these work in a harmony to ensure the functionality and adoption of this platform. Here’s a detailed look at how this project works:
1. World ID
The first and most important component of this AI project is the World ID. It is designed to verify a user’s identity without compromising their privacy. But do you know how this identity verification process works? It’s achieved by using a device known as the Orb. And the company refers to this entire process as “proof of personhood”.
You know how our fingerprints are unique to us, which means our iris also has a unique value which the Orb scans to create a unique identification code called an IrisCode. This iris scan is not linked to any personal information but it’s done so that one individual cannot create multiple World IDs. This guarantees that each user is a unique individual in the system.
Once the Orb scans your iris and generates an anonymous IrisCode for you, it creates a World ID for you then and permanently deletes the iris image to ensure no biometric data is stored. This World ID is then securely added to the Worldcoin blockchain, where it can be used to verify your identity online. Also, this identification can only be carried out by using a cryptographically secure application.
2. World App
Now, the World App is where you and many other users store their World ID. It acts as a central hub that keeps your identity safe and allows access to a variety of decentralized finance (DeFi) applications. This app is basically a crypto wallet with an additional layer of identity management.
Apart from managing your ID, this app also supports various popular crypto tokens like Bitcoin (BTC), Ethereum (ETH) and USD Coin (USDC). This makes it a versatile option for users who want to hold and transact in different types of cryptocurrencies. This app is also planning to accommodate more crypto tokens in the future.
The thing that makes this app stand out from other wallets is its ability to store user credentials that can be used for verifying identities on third-party applications. This feature also ensures that users can easily authenticate their identity across various online services without needing to share their personal information.
3. WLD Token
Once the user has their World ID and downloads the World App, they gain access to WLD token. It is the native token of the Worldcoin ecosystem and is designed to be used within the platform. It is an ERC-20 token and transitioned to the core OP network which means it can bridge between the Polygon and Optimism network.
During the Worldcoin’s beta phase, early users were issued WLD tokens and with the platform’s official launch, a significant amount of WLD tokens were airdropped to users who had signed up. Currently major exchanges like Binance and KuCoin have already listed WLD token for trading so users around the world can access it.
Now, if we look at their whitepaper, we’ll see that a total of 10 billion WLD tokens will be issued over a span of 15 years. After this period, the Worldcoin Protocol Management Committee will review and decide whether to increase the token supply or mint new tokens.
As of September 2024, 460.6 million WLD tokens are currently in the circulating supply. During the launch 43 million tokens were distributed to World App users and 100 million WLD tokens were given to market makers to make trading easier on various exchanges.
What is the Worldcoin Orb?
The Worldcoin Orb is one of the most innovative and crucial components of the Worldcoin project. It’s basically a specialized device designed to verify a user’s identity by scanning their iris to create a unique digital identity called a World ID.
Because of this method, every person who uses the worldcoin ecosystem is real and eliminates the risk of duplicating identities. Let’s see how this worldcoin orb actually works.
How the Worldcoin Orb Works
The technology behind the Orb is based on the concept that every one of us has a unique iris just like the fingerprint. This Orb uses this information and scans the intricate patterns of the user’s iris and converts it into a unique digital code which is also known as the IrisCode. This code is then stored on the blockchain and has no personal information whatsoever.
Here’s a breakdown of the steps Worldcoin orb goes through to create a unique identity:
Iris Scan
First the orb scans the user’s iris and captures the unique pattern. This process is quick and non-invasive and is actually quite similar to taking a photograph. This orb doesn’t keep the image of your iris so you don’t need to worry about that.
IrisCode Generation
After scanning, the device converts the visual information into an encrypted digital identity which we are calling “IrisCode”. This code is a mathematical representation of the iris pattern and is only used so that none can create multiple identities.
Issuing World ID
Once the IrisCode is generated, it creates the user’s World ID which is a unique identifier tied to that individual on the Worldcoin blockchain. You can now easily use your World ID to verify yourself inside the ecosystem and even on third-party applications without requiring them to scan your iris again.
Privacy Protection
As we told you the image of your iris is deleted for privacy purposes. This leaves an anonymous IrisCode stored on the blockchain. This is done to ensure that no personal biometric data is stored or accessible.
One-Time Verification
Once you verify yourself using the Worldcoin orb, you don’t need to do it ever again. You can simply use your World ID wherever necessary.
Why iris Scanning?
If you’re still wondering why Worldcoin chose to use iris scanning as opposed to other biometric verification like fingerprint or facial recognition, it’s simple as the answer lies in the precision and uniqueness of the iris.
The pattern of a person’s iris is formed in early childhood and remains largely unchanged throughout their life. Additionally, the iris has a highly detailed structure that is unique to each individual that makes it an ideal biometric marker for identity verification.
If we compare it to fingerprints, they can sometimes be duplicated or altered due to wear whereas the iris offers a higher level of accuracy and security and remains the same. Also, facial recognition technology has been criticized for its potential to be fooled by similar-looking individuals or photographs whereas iris scanning is much more safe and precise.
Global Distribution of the Worldcoin Orb
Worldcoin Orbs are available in major cities around the world which include New York, Paris, Hong Kong, Tokyo, Singapore, São Paulo and many others. These devices are set up in high-traffic locations to make it easy for people to participate in the Worldcoin ecosystem.
The company is also planning to expand its Orb network and move globally as well so that more and more people can access this system and verify and create a digital identity for themselves. Have you already participated in it or are you still thinking about it? Let us know in the comments at the end.
Where To Buy WLD Tokens?
If you want to buy Worldcoin (WLD) tokens, you need to sign up for one of the major centralized and decentralized exchanges. Since its launch WLD token has been available through multiple ways to provide flexibility to users.
Currently, WLD tokens are listed on 41 different exchanges with Binance leading the charge. Other major centralized exchanges (CEXs) include KuCoin, ByBit, Huobi and many more. These platforms provide a variety of purchasing options.
For instance, on Binance you can buy WLD tokens by using a credit card or bank deposit. You also have the option to purchase stablecoins like Tether (USDT) first and then exchange them for WLD tokens on the spot market. These exchanges are a user-friendly option for both beginners and experienced traders.
Apart from these CEXs, WLD tokens can also be bought through decentralized exchanges (DEXs) such as Uniswap and PancakeSwap. This allows you to swap various cryptocurrencies for WLD tokens without relying on a third party. So, whichever one suits you the best, go there, sign up and buy WLD tokens with ease.
Regional Restrictions and Legal Considerations
Worldcoin is accessible in most of the regions worldwide. However, there are some geographical restrictions for buying and using WLD token. At the time of its launch on July 24, 2023, WLD was not available in the United States because there were regulatory challenges and legal compliance issues.
According to Sam Altman and Alex Blania, the founders of Worldcoin, the WLD token is only available in jurisdictions where legal compliance is easily achieved. The company has clearly stated that the use, purchase, or access of WLD tokens is not intended for U.S. persons.
This includes the U.S citizens, residents, and even companies located and registered within the U.S. Even if they take part of the iris scan through an Orb located somewhere else, they will not be eligible for the token drop.
Benefits of Worldcoin
There are various benefits of using Worldcoin tokens and its ecosystem. These include:
Privacy-Focused Digital Identity
One of the most significant benefits of using Worldcoin is its ability to provide secure and private identity verification. By using the Orb to scan the iris, Worldcoin creates a unique ID which is used to identify a particular individual on the blockchain.
This ID basically verifies a person’s humanness without compromising their privacy. This proof of identity can be used across multiple online platforms and services to reduce the risk of fraud, fake accounts and identity theft.
Financial Inclusion
The goal of this project is to provide everyone, especially the people in underserved regions, access to financial services. Many people from different regions don’t even have access to basic banking services due to economic barriers.
However, with Worldcoin these barriers will be broken and a digital currency will be created so that anyone can use it regardless of their location. Worldcoin provides an alternative way to store, send, and receive money through the World App.
Universal Basic Income (UBI) Distribution
Another potential benefit and use case of this project is facilitating Universal Basic income (UBI) distribution through the WLD token.
The founders of this project have a vision in mind to use WLD tokens to distribute them to everyone as a form of UBI to reduce poverty and economic inequality worldwide.
Global Accessibility
Worldcoin is designed to be accessible to everyone regardless of their geographic location or financial status.
By providing a free and secure way to pay to verify their identity and participate in the decentralized financial system, this project is empowering individuals with a way to make transactions without the need for any banks.
Decentralization and Security
As we know all Worldcoin is a decentralized system which means there’s no single entity which controls it. This also means that no government or organization can manipulate the platform which also makes it resistant to censorship.
With the help of blockchain technology, the transactions are made secure, transparent and immutable.
Fair Token Distribution
One of the main principles of Worldcoin is fairness. This means the project distributes WLD to anyone who verifies their identity with the Orb apart from the citizens of the U.S. due to regulatory concerns.
Worldcoin ensures that its currency is accessible to everyone and not just the early adopters or the investors. This fair distribution model aims to prevent the centralization of wealth that is common in other cryptocurrency ecosystems.
Incentives for Participants
Worldcoin provides incentives for both users and Orb operators. Every individual who verifies their identity using the Worldcoin Orb is rewarded with WLD tokens. This incentive encourages more people to participate in the network.
Even the Orb operators who are responsible for running the verification process are given WLD tokens as a form of reward. This will help in the expansion of the Worldcoin ecosystem in the long-run.
Challenges for Worldcoin and Criticism
Worldcoin made headlines because of its innovative approach, however, it has also faced significant criticism. Some of the most common ones are:
Privacy Concerns and Biometric Data Collection
One of the most prominent concerns about Worldcoin is its use of biometric data, especially iris scans. The Orb captures highly detailed biometric data which raises questions about privacy and the security of sensitive information.
Now, Worldcoin claims that all iris data is encrypted or erased after the creation of World ID. However there have been a few critics who are still skeptical about it and think the user’s data is vulnerable to hacking, misuse or being sold on the black market.
Investigations in regions like Hong Kong, France and Germany have been launched due to these concerns. For instance, Hong Kong’s Privacy Commissioner has started an inquiry to assess whether Worldcoin complies with the region’s data protection laws or not.
Unethical Practices in Developing Countries
Another significant criticism is the unethical practices going on in the developing countries around Worldcoin. A detailed investigation by the MIT Technology Review uncovered allegations of unethical marketing practices in places like Indonesia and Kenya.
This report showed that Worldcoin operators offered financial incentives such as cash or AirPods to encourage people to participate in the iris scanning process. The investigation also found that Worldcoin collected more personal data than it disclosed.
And to add fuel to the fire, there have been reports that some individuals from China have purchased iris scans on the black market to gain access to Worldcoin during its beta phase. These raise a lot of questions around the security of this project.
Data Exploitation and Centralization
There has been some criticism that Worldcoin shows signs of centralization. In its early stages the development and distribution of the Orb devices was controlled by a core team which raised concerns about unequal power dynamics within the ecosystem.
Another point to ponder over here is the aggressive growth of Worldcoin in the developing world, particularly Asia and Africa. The main goal of the platform is to promote financial inclusion, however, because of this, it feels like Worldcoin is exploiting vulnerable populations who may not fully understand the privacy risks associated with it.
Conclusion
Worldcoin is a bold and ambitious project which aims to revolutionize digital identity and financial inclusion. It is using innovative technology like the Worldcoin Orb and WLD token to make this all happen.
However there are a few concerns over privacy especially with the collection of sensitive biometric data. There have also been a few allegations of unethical practices in several regions which shows that the project is still in the experimental phase.
For those who followed along, it’s clear that Worldcoin is a project full of potential but also needs to carefully navigate the challenges it’s facing. In the end, Worldcoin is certainly a project worth watching as it continues to grow.
FAQs
How can I get free WLD tokens?
To get free WLD tokens, download the World App on your iOS or Android device. Now use this app to locate the nearest Worldcoin Operator and they’ll ask you to undergo an iris scan which is part of the procedure. Once you get an IrisCode and then a World ID, type that in your World App and you’ll receive WLD tokens in a while.
Where can I get my World ID?
You can visit Worldcoin orb locations in several countries including France, Germany, India, Japan, Kenya and the United Kingdom. You can download the World App to find the nearest Worldcoin orb operator. These locations may also appear at global events.
Can I mine Worldcoin?
Currently, Worldcoin does not use traditional mining methods. Instead, you receive WLD tokens by verifying your identity with the Orb. There is no need for expensive hardware or high energy consumption as you need for mining other cryptocurrencies.
Can anyone create multiple World IDs?
No, it’s impossible. The Orb is created specifically for this purpose so that each person can only create a World ID by using unique biometric data from their iris. This prevents users from obtaining or creating multiple identities.
What happens to my iris scan after verification?
According to their team, the iris scan is permanently deleted once the World ID is created. Only your IrisCode is stored on the blockchain so that your biometric data cannot be accessed. However, there’s been concerns about whether it is actually being implemented or not.
