OpenAI’s Sam Altman combines artificial intelligence and crypto in his new Worldcoin, but there is more to the story.

OpenAI's Sam Altman combines artificial intelligence and crypto in his new Worldcoin, but there is more to the story.

What is Worldcoin?

Worldcoin is an exciting new project that aims to revolutionize online identities and financial transactions through the use of cutting-edge technology. At the core of Worldcoin is a device called an “orb,” which resembles a larger, silver-colored version of a Magic 8 Ball. This orb is capable of scanning a person’s iris, much like a fingerprint, to create a unique World ID. This World ID serves as a form of “proof of personhood,” allowing individuals to verify their identities on various online platforms without the need for disclosing personal data or personal information.

Furthermore, Worldcoin is also the name of the cryptocurrency utilized by the project to reward participants who scan their irises or support the initiative. The Worldcoin Foundation is listed as the steward of the technology, providing governance and oversight. However, it is important to note that Worldcoin has no owners or shareholders, and holders of Worldcoin tokens have a say in shaping the future direction of the project. Additionally, Worldcoin is closely affiliated with Tools for Humanity Corp., a tech company aiming to accelerate the transition towards a fairer economic system.

Why is there so much excitement about Worldcoin?

Worldcoin has generated significant anticipation due to its ability to bridge two rapidly growing trends in the financial world: artificial intelligence (AI) and cryptocurrency. As AI continues to gain popularity and become more prevalent in various industries, there is a growing need for reliable identity verification systems to differentiate between humans and AI-powered software. World ID, empowered by Worldcoin, offers a unique solution to this challenge, making it an intriguing prospect for many.

Another reason behind the buzz surrounding Worldcoin is the involvement of Sam Altman, the public face of ChatGPT. Altman’s AI chatbot, introduced in November 2022, captured the public’s imagination and sparked interest in the potential of artificial intelligence. His association with Worldcoin lends credibility and excitement to the project, attracting attention from enthusiasts and investors alike.

What’s the controversy with Worldcoin?

While Worldcoin has garnered excitement, it is not without its fair share of controversies. One contentious aspect is the creation of tokens to compensate participants outside the US and other excluded countries for scanning their irises. This practice has raised concerns about possible discriminatory practices and unequal access to rewards.

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Furthermore, several early backers of the project were affected by the crypto collapse in the previous year. Notably, Sam Bankman-Fried, the founder of FTX, who supported Worldcoin, is currently under house arrest and facing fraud charges. These circumstances raise questions about the project’s integrity and the choice of initial supporters.

An investigation by MIT Technology Review shed light on what they termed “deceptive and exploitative practices” employed by Worldcoin to attract participants in countries such as Indonesia, Ghana, and Chile. The project’s collection of biometric data has also attracted scrutiny in Europe, potentially conflicting with privacy laws in certain countries. Issues such as the theft of login credentials from Worldcoin operators signing up new users and the existence of black-market sales of World IDs have further raised concerns. Worldcoin claims to have responded by implementing security upgrades.

Is anyone using it?

Although relatively new, Worldcoin has made significant progress in terms of user adoption. By the end of July, the project had registered and created digital identities for over 2.1 million people. It’s worth noting that the majority of these identities were issued before the official launch on July 24. The related cryptocurrency, Worldcoin, experienced fluctuations in value. Following the launch, the price of a Worldcoin token approximately doubled to reach a high of $3.58, before subsequently dropping to as low as $1.92 a week later. Despite the volatility, Worldcoin had a total market capitalization of $267 million on July 31, according to CoinMarketCap.

Who is Sam Altman?

Sam Altman, a seasoned entrepreneur, is a key figure associated with Worldcoin. Apart from leading OpenAI, a prominent artificial intelligence research lab, Altman has an extensive background as the longtime president of Y Combinator, a renowned startup accelerator. Furthermore, he has made investments in notable companies such as Airbnb, Stripe, Dropbox, and Instacart. Altman also co-founded Loopt, a smartphone-location service, further highlighting his experience and expertise in the tech industry.

Why are Worldcoin tokens not available in the US?

Sam Altman has publicly stated that Worldcoin tokens will not be made available in the US and certain other countries where the regulatory landscape surrounding cryptocurrencies remains uncertain or unclear. This decision aligns with the strategies adopted by many other crypto projects in recent years, as the US regulators and lawmakers continue to grapple with the classification of different cryptocurrencies as securities. Gary Gensler, the chairman of the US Securities and Exchange Commission, has consistently maintained the view that most coins are securities. However, a notable legal case in July ruled that Ripple Labs Inc.’s XRP token is classified as a security only when sold to institutional investors, but not when sold to retail investors via exchanges. This ruling left the classification of many other tokens unsettled. As the crypto market faces increased scrutiny, litigation and regulatory developments contribute to the prevailing climate of uncertainty for crypto issuers.

In conclusion, Worldcoin has the potential to be a game-changer in the world of online identities and financial transactions. By utilizing advanced technology and AI, the project aims to provide secure and reliable identity verification while offering a new form of digital currency. However, it is important to acknowledge the controversies surrounding Worldcoin, such as discriminatory practices, privacy concerns, and the involvement of individuals affected by the crypto collapse. As the project continues to evolve, it remains to be seen how it navigates regulatory challenges and achieves widespread adoption.