According to a report by MIT Technology Review, another major criticism is how Worldcoin recruits participants, particularly in developing countries where financial incentives are more appealing.
Worldcoin, the controversial eyeball-scanning crypto project, officially launched in 2023 with its identity verification technology and native cryptocurrency, $WLD. The project, backed by OpenAI CEO Sam Altman, aims to create a blockchain-based identity system to differentiate humans from artificial intelligence (AI).
To achieve this, Worldcoin distributes $WLD tokens to individuals who consent to having their irises scanned using an Orb—a helmet-shaped verification device. The initiative has sparked debates, especially within the #CryptoPH community, where iris-scanning activities are currently being conducted, with concerns about privacy, ethics, and data security.
Given these concerns, this article will explore what Worldcoin is, why it scans irises, and why it is gaining traction in a world increasingly focused on data security.
How Worldcoin Works
World App and Orb Verification
To participate in Worldcoin, individuals must download the World App, the project’s protocol-compatible wallet, and visit an Orb to verify their identity. The Orb scans the user’s iris and converts the biometric data into a unique cryptographic code, known as a World ID.
Step-by-Step Process
- Iris Scan – The Orb scans the user’s iris.
- Encryption – The image is encrypted and converted into a unique identifier.
- Data Deletion – The original scan is deleted to protect user privacy.
- Token Distribution – Users receive a small share of $WLD tokens.
“To rapidly get its new currency into the hands of as many people as possible, Worldcoin will allow everyone to claim a share of it for free. For this to happen, we first had to solve one major challenge: ensuring that every person on Earth can prove that they are indeed human (not a bot), and that they have not claimed their free share of Worldcoin already.”
Tokenomics and Adoption
Worldcoin has positioned $WLD as a globally distributed cryptocurrency.
- 80% of the total supply is allocated for global distribution.
- 20% of the tokens are withheld from circulation.
- U.S. citizens cannot participate in the airdrop due to regulatory restrictions.
The total supply of $WLD is capped at 10 billion tokens for the initial 15-year period. At launch, the circulating supply of the ERC-20 token stood at 143 million tokens.
$WLD Current Prices
Regulatory Considerations
A key question surrounding Worldcoin is whether it qualifies as a Virtual Asset Service Provider (VASP) under financial regulations:
“Worldcoin is not a Virtual Asset Service Provider (VASP) or another similar classification.”
The firm argues that, as a self-custodial wallet provider, it does not:
- Offer exchange services
- Hold custody of crypto assets or user funds
Concerns and Ethical Issues
While Worldcoin promises a secure and innovative identity verification system, it has faced widespread criticism globally.
Privacy & Data Security Risks
- Skepticism remains about whether iris scans are truly deleted after encryption.
- Critics worry about potential data leaks or misuse of biometric data in the future.
- Some argue that the project lacks sufficient transparency regarding how the data is managed.
Regulatory Scrutiny
Countries such as Kenya, Germany, and France have raised concerns about:
- Potential misuse of biometric data
- Lack of oversight in data collection
- Ethical concerns regarding mass biometric enrollment
Are Worldcoin’s Onboarding Practices Exploitative?
According to a report by MIT Technology Review, another major criticism is how Worldcoin recruits participants, particularly in developing countries where financial incentives are more appealing:
Key Concerns:
- Targeting low-income communities – Individuals may trade biometric data for tokens without understanding long-term consequences.
- Lack of informed consent – Reports suggest that people sign up without fully grasping privacy risks. (Please note that the keyword here is “fully”, the question of whether or not people truly understand what the activity is after it was explained to them.)
- Some critics argue that if biometric data is compromised, users may have no recourse due to weak regulatory frameworks.
Aggressive Recruitment Tactics
Still according to MIT, reports have surfaced that Worldcoin representatives push sign-ups without properly explaining and without the users fully understanding:
- Privacy risks
- Data retention policies
- Potential security implications
This raise concerns that the company prioritizes mass adoption over ethical considerations.
Worldcoin’s Response to Criticism
To address privacy concerns, Worldcoin has assured users that:
- Zero-knowledge proofs protect personal data.
- The original biometric scan is deleted after encryption.
- Users can opt-out of participating at any time.
However, whether these assurances are enough to satisfy regulators and privacy advocates remains uncertain.
This article is published by BitPinas: Worldcoin’s Controversial Iris Scans: Should You Trade Your Biometric Data For Crypto
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