We hope you're not tired of reading about Artificial Intelligence (AI) and Cryptocurrency as today will be discussing "Worldcoin": an interesting combination of both (AI and Cryptocurrency).

Worldcoin is a project co-founded by Sam Altman, CEO of OpenAI, along with Alex Blania through an entity called "Tools for Humanity." Worldcoin is a cryptocurrency project that aims to identify persons on the internet by providing human beings with a "World ID."

This World ID which is assigned to human beings once they consent to scanning their eyeballs with a biometric authentication device in the form of a shiny metallic Orb and "the technique is not unlike the biometric scans conducted by CLEAR or Apple’s Face ID."

According to the the Worldcoin Whitepaper, a World ID is a privacy preserving proof of personhood and the shiny metallic orb with the size of a bowling ball was "designed based on the realization that custom biometric hardware might be the only long term viable solution to issue AI-safe proof of personhood verifications."

To simplify things thus far, Worldcoin aims to scan a human being's iris (the colored portion of the eye around the pupil) using shiny metallic orbs. This process would enable the Worldcoin protocol to confirm whether a person is human and not an artificial intelligence software, utilizing a World ID.

A very common question any human being may have once presented with this information is similar a toddler's question to everything: "But . . . Why?"

Worldcoin has embarked on a mission to identify human beings across the globe with this orb because "rapidly advancing AI models . . . can solve CAPTCHAs and produce content that is convincingly 'human'."

Apparently we have had enough of "bots on Twitter, spam messages, and robocalls," and "a lot of noise could be filtered from the digital world," by confirming internet users are human beings and not Artificial Intelligence software.

As of the date of this article, Worldcoin has identified over 4 million as "unique humans" in about 120 countries around the world as part of the Worldcoin project.

Why would people stand in long lines give up their biometrical data through the scan of their eyeballs? The answer is simple . . . Money.

Worldcoin offers 25 worldcoins when you scan your iris with the orb and sign up to the project, which can be worth approximately $68 USD.

It should be no surprise that people in impoverished countries where 7.8 percent of the population lives under $2.15 a day (ex. Kenya) are queing in line to sign up without concern for the use or protection of their biometrical data.

A parliamentary committee in Kenya stated that "350,000 Kenyans had signed up for Worldcoin within a week of its launch in July 2023, making up to 25% of [Worldcoin] global registered data."

In case this doesn't sound like a Sci-Fi movie yet, let's not forget to add that the WhitePaper for Tools for Humanity "Worldcoin" states that the project is path to provide individuals with Universal Basic Income (UBI). Sam Altman has written extensively about the idea of redistributing wealth in anticipation that Artificial Intelligence will take people's jobs.

Universal Basic Income (UBI) is a financial concept where a government or another public institution provides all citizens with a regular, unconditional sum of money, regardless of employment status or wealth.

UBI aims to ensure a minimum standard of living, reduce poverty, and address income inequality by providing financial security to everyone. It's thought to be particularly relevant in the context of automation and AI, where future job displacement is a concern.

If you review the Worldcoin White Paper carefully, Worldcoin explains that they verify human beings by utilizing a complicated mathematical equation known as zero-knowledge proof: a method in cryptography where "one party can prove to another party that a given statement is true, while avoiding conveying to the verifier any information beyond the mere fact of the statement's truth."

In very basic terms, zero-knowledge proof, when applied to the Worldcoin protocol, would verify a person is a human being by utilizing person's biometrical data without actually conveying a person's biometrical data (the scan of the person's iris) through an innovative use of blockchain technology.

The controversy surrounding Worldcoin primarily relates to its method of biometric data collection and the privacy and security implications thereof.

Privacy Concerns: The use of iris scans for creating digital identities has raised significant privacy concerns. Critics argue that such sensitive biometric data, if not properly protected, could be misused or exploited, leading to potential surveillance or targeting of individuals.

Please do yourself a favor and read this humorous article on the New Yorker here.

 Regulatory Scrutiny: As seen in various countries like France, Kenya, Germany, Spain, and Argentina, data protection authorities have launched investigations into Worldcoin's operations. The concerns include the legality of its biometric data collection, adherence to data protection laws like GDPR, and the security of the data collected.

Ethical and Social Implications: There are broader ethical questions about the implications of tying cryptocurrency incentives to biometric data collection. Critics argue that this could lead to exploitation, particularly in lower-income regions where the promise of free cryptocurrency might compel individuals to give up their biometric data without fully understanding the consequences.

Implementation of UBI: While Worldcoin's approach is often linked to the concept of UBI due to its potential to provide financial resources to participants, the project has faced skepticism about its effectiveness and fairness in implementing a true UBI system. The distribution of cryptocurrency and the creation of a global ID system raise questions about inclusivity, accessibility, and the actual impact on reducing inequality.

Now that you (kind of) understand Worldcoin, we're going you updated and delve into recent investigations (ex. Argentina), temporary bans (ex. Spain), or call to shut down the cryptocurrency project (ex. Kenya) by different jurisdictions around the world due to privacy concerns.

Della Torre Law, PLLC