Worldcoin (WLD): Bringing Digital Assets to the Masses
Artificial intelligence (AI) has evolved significantly in recent years, reaching a level where differentiating between it and humans based solely upon online interactions is increasingly challenging. Modern AI has already created numerous problems for humans, for example in manipulating elections and the capacity to impersonate real people and others. The ability to determine the humanness and authenticity of content has far-reaching consequences for individuals, businesses and societies. Worldcoin plans to address this problem through a three-pronged approach — World ID, World App and Worldcoin token (WLD).
Key Takeaways:
- Worldcoin aims to bring digital currency to the masses by creating a decentralized identity protocol, World ID, which verifies humanness and individuality without storing personal data.
- Worldcoin utilizes the Orb, a biometric technology that captures an individual's iris image and converts it into a unique numeric sequence, ensuring privacy and singularity while confirming humanness.
- The World App serves as a wallet, facilitating the adoption of cryptocurrencies and allowing users to buy, trade and transfer digital assets freely while maintaining a private digital identity.
- Bybit is excited to announce the listing of Worldcoin (WLD) on our trading platforms. To celebrate the listing, Bybit is holding five exclusive events in which users can earn from a 165,000 USDT total prize pool.
What Is Worldcoin?
The Worldcoin blockchain project’s ambitious vision is to create the largest identity and financial public utility to give universal access to the global economy.
Authenticating humanness among the world’s billions of people requires a unique approach. After all, the individualized humanness of one person must be differentiated from that of others without invading that individual’s privacy. Worldcoin’s developers have successfully approached this problem via the Orb, a biometric technology that initially takes a picture of an individual’s eyes. This image is turned into a numeric sequence to confirm both humanness and uniqueness, and is the only personal information that’s revealed. This data is then stored securely in the World ID, which serves as a digital passport.
As part of this identification and verification process, each person will receive Worldcoin tokens, thus enabling the global population to receive free money simply by scanning their irises.
The CEO of OpenAI, Sam Altman, co-founded the Worldcoin project. Altman has focused on a three-pronged strategy to bring the project to life: Creating an individual’s global ID, developing the World App, and using Worldcoin tokens for purchases and other activities. Blockchain Capital led the Series C fundraising round, which garnered $115 million in funds.
How Does Worldcoin Work?
Worldcoin is developing the world's largest identity protocol, which functions like a digital passport and can be used worldwide. This digital passport is accessible via the individual’s phone. Worldcoin uses zero-knowledge proofs to verify humanness and individuality, without gathering and storing personal data, thereby preserving privacy.
The Orb supports this critical aspect of the app as an open imaging device, using biometrics to generate a World ID. In order to obtain a World ID, you need to download the World App and connect to a compatible wallet. Currently, this beta technology is only accessible in a few countries, but accessibility is expected to rapidly expand. Worldcoin Operators from around the globe help to operate the Orb, and earn Worldcoins by providing this service.
In order to prevent bot accounts, there’s a limit to the total number of accounts a user may create, but an individual can still open multiple accounts, since the protocol recognizes that humans may use pseudonyms.
Once launched, Worldcoin will have numerous real-life applications, such as bot account prevention on social networks like Instagram and Twitter. It can also be used to vote in government elections and for DAO governance.
In the financial services arena, Worldcoin may play roles in collateralization processes, compliance and fraud detection. Customer incentives, such as coupons, loyalty rewards and free trials, can be distributed via Worldcoin. Worldcoin also facilitates fair money distribution for scholarships, government welfare programs, refugee aid and more. In addition, Worldcoin can directly address the serious problem of fake transactions and news.
Worldcoin Key Features
Worldcoin supports the accurate and expedited differentiation between AI and human content through three key features, each of which plays a critical role in the verification of humanness and in preserving individual privacy: World ID, proof of personhood and the World App.
World ID
World ID is a permissionless, decentralized identity protocol that takes a privacy-first approach. It can be used during an individual's sign-in step for different crypto DApps, mobile apps and websites, allowing the user to confirm that they’re a human without the need to provide a name, email address or other personal data.
The World ID may use biometrics or other methods to confirm humanness and individuality, for instance through the Orb, which is a privacy-preserving, open-imaging technology that can function in a trustless environment.
To take advantage of the benefits of World ID, you first must create a compatible wallet account (unless you have an existing one). Then, connect your wallet to the World App. You’ll be prompted to verify your humanness and uniqueness. Several accounts can be created for those using pseudonyms. Once created, an individual can use their World ID as a type of digital passport.
Proof of Personhood
A critical aspect of Worldcoin is to identify a user’s individuality and humanness. This is explicitly accomplished by issuing an AI-safe proof of personhood (PoP) credential on World ID. Proof of personhood, or PoP, enables an individual to prove their human identity online without relying on a third-party verification process, which can be time-consuming.
PoP places a limit on the number of accounts an individual can create, providing an effective safeguard against Sybil attacks. It also directly reduces the problematic spread of misinformation produced by AI. Online content and accounts are filtered to distinguish between AI- and human-generated content.
PoP may also act as a spam filter, preventing identity theft and supporting digital collective governance. An individual World ID for each human user is generated to enable the functionality and benefits of PoP.
Source: worldcoin.org/blog
World App
The Worldcoin ecosystem’s functionality is supported by the technology’s first wallet, World App. Developed by Tools for Humanity, World App is an Ethereum-based wallet that uses smart contracts for security purposes, along with well-designed, advanced protocols to support a private digital identity for each user. Once a user creates a unique World ID, the PoP credential is established. WalletConnect then allows the World App to link to any application to prove human identity. World App is also operational as a beta version on Polygon, with plans to launch on Optimism's OP Mainnet, a Layer 2 rollup network with Ethereum's security benefits.
World App also supports the increased adoption of cryptocurrencies, accomplished through an easy-to-use method via Uniswap that lets users easily buy and trade crypto without an intermediary. Peer-to-peer (P2P) payments are made simple through the use of Ethereum Name Service (ENS), which creates human-readable names for user-friendly ERC-20 transfers. The financial functionality of the app includes the ability to withdraw cryptocurrencies as fiat currencies on debit cards and credit cards, as well as from bank accounts.
What Is Worldcoin Token (WLD)?
The Worldcoin token (WLD) is an ERC-20 utility token with governance features that benefits from Ethereum’s security. It allows users to contribute to the platform’s direction and continued development. In addition to providing governance functionality to token holders, WLD facilitates the transfer and purchase of digital assets and fiat in a secure manner. It also supports compatibility with established services and tools for optimized functionality.
Notably, the token is freely distributed to users around the world. The only requirement for receiving WLD gratis is to complete steps to confirm your uniqueness and humanness. Going forward, Sam Altman intends to provide regular income to users worldwide with WLD to cover basic needs, which he terms universal basic income. Worldcoin Operators can also earn WLD tokens via the Orb and through educating people about Worldcoin.
The Worldcoin project underwent a successful pre-launch phase from May 2021 to July 2023, allowing users in select countries who haven’t pre-registered to sign up for an account and receive WLD after verifying their humanness. The initial goal was to pre-register a couple of billion users before the mainnet launch. During this period, over two million individuals across 30 countries verified their World IDs at an Orb, leading to the allocation of more than 36 million WLD tokens.
Upon launch, Worldcoin initiated the deployment of 1,500 Orbs globally to cater to the global demand for World ID.
Worldcoin Tokenomics
There’s an initial total supply of 10 billion WLD tokens, which are distributed according to the following allocation:
- Worldcoin Community: 75%
- Tools for Humanity (TFH) Investors: 13.5%
- Initial Development Team: 9.5%
- TFH Uncommitted Reserve: 2%
At launch, there will be a maximum initial circulating supply of 136 million WLD, with 36 million allocated to Orb-verified individuals during the beta phase of the project, as well as 100 million loaned to market makers operating outside of the U.S.
The Worldcoin Foundation intends to work toward the following token allocation goal as the project develops:
- User Grants: 60%
- TFH Investors: 13.5%
- Network Operation: 10%
- Initial Development Team: 9.5%
- Ecosystem Fund: 5%
- TFH Uncommitted Reserve: 2%
Where to Buy Worldcoin
Intending to purchase WLD tokens and trade them? Bybit is excited to announce the listing of Worldcoin (WLD) on our trading platforms.
- Spot: WLD/USDT, WLD/USDC
- Spot Grid Bot and DCA Bot: WLD/USDT, WLD/USDC
- Derivatives: WLDUSDT Perpetual Contracts (to be supported on the same day as Spot listing)
- Futures Grid Bot: WLDUSDT (to be supported on the same day as Spot listing)
- Copy Trading: WLD/USDT (to be supported on the same day as Spot listing)
- Fiat to WLD Manual Conversion (to be supported as of Jul 26, 2023)
- Margin Trading: Up to 10x leverage (to be supported within 24 hours after Spot listing)
- Lending: WLD (to be supported on the same day as Spot listing)
To celebrate the above Worldcoin listings, Bybit is holding five exclusive events in which you can earn a share of the 165,000 USDT prize pool.
Event 1: Deposit and Buy to Earn from a 60,000 UDST Prize Pool
Event Period: Jul 24, 2023, 7AM UTC through Aug 14, 2023, 11:59PM UTC
This event comprises a total of three subevents:
- One for new users
- One for existing users
- One for all users
For new users: Be one of the first 4,000 new users to complete the following three steps during the event period to win 10 USDT:
- Deposit at least 100 USDT or USDC
- Purchase at least 100 USDT or USDC worth of WLD as your first trade on Bybit
For existing users (who created an account before Jul 24, 2023, 7AM UTC): Be one of the first 4,000 existing users to purchase at least 100 USDT/USDC worth of WLD during the event period to earn 5 USDT.
Looking to earn additional rewards? Simply deposit 25 WLD to your Bybit account to claim another 5 USDT in rewards! Please note that this reward will be distributed on a first come, first served basis to the first 4,000 users.
Event 2: Trade WLD to Earn from a 50,000 USDT Prize Pool
Event Period: Jul 24, 2023, 7AM UTC through Aug 14, 2023, 11:59PM UTC
To participate in this event, you just need to accumulate a Spot trading volume of at least 200 USDT worth of WLD during the event period. Your final reward will be determined based on the proportion of your trading volume compared to the total trading volume throughout the event.
If you would like to obtain a bigger cut of the prize pool, simply trade more!
Event 3: Stake to Earn Up to 99% APR
Event Period: Jul 24, 2023, 7AM UTC through Aug 7, 2023, 11:59PM UTC
As mentioned above, simply stake through the Bybit Flexible Savings plan and earn up to 99% APR — and a total of 20,000 USDT worth of WLD awaits you!
Event 4: Trade With Grid Bots and Share 5,000 USDT in Rewards
Event Period: Jul 24, 2023, 7AM UTC through Aug 14, 2023, 11:59PM UTC
There are two subevents included in this event.
First, create at least one WLD/USDT or WLD/USDC Spot Grid Bot, and invest at least 200 USDT or 200 USDC. The first 4,000 users will share equally from the 1,500 USDT prize pool.
Event participants will be ranked according to their net profits from their WLD/USDT and WLD/USDC Spot Grid Bots. Rewards will then be distributed to the top 20 users.
Please note that participants must accumulate at least $50,000 in WLD/USDT and WLD/USDC Spot Grid Bot trading volume to be eligible for rewards.
Event 5: Refer Friends and Share 10,000 USDT in Rewards
Event Period: Jul 24, 2023, 7AM UTC through Aug 14, 2023, 11:59PM UTC
Earn up to 1,025 USDT and 30% commission per referral when you refer a friend to Bybit! You can even receive an additional 5 USDT for every referee who completes the following three steps:
- Signs up for a Bybit account with your referral code
- Deposits at least 100 USDT or USDC
- Buys at least 100 USDT/USDC worth of WLD within seven days of registration
Please note that rewards will be distributed on a first come, first served basis.
Is Worldcoin a Good Investment?
As a utility token, WLD serves two primary purposes: confirming a user’s identity as a unique human, and supporting the purchase of digital assets. The coin currently has negligible value. However, another token with almost the same name has been experiencing a positive impact on its price with the news of Worldcoin. WorldCoin (note the distinction of two capital letters) is a relatively obscure project, but since it bears the same name as Sam Altman's Worldcoin, investors have been flocking to it, thinking it to be the same token. (Note that the token ticker for this other WorldCoin is WDC, while the OpenAI-backed Worldcoin's ticker is WLD).
Besides being aware of the two different tokens, there are many other elements to inspect when considering if Worldcoin is a good investment. It’s crucial to understand both its unique potential and the controversies surrounding its functionality.
Its Controversy
Combating Sybil attacks and misinformation generated by AI requires the verification of each user’s uniqueness and humanness. This verification is achieved via the Orb, which scans an individual’s iris. The iris image is then converted into a unique code, known as a World ID, which creates a digital passport that can be used in lieu of personal data.
However, the image of a user's iris is stored by Worldcoin as a hash. Some consider biometrics to be invasive, viewing them as a form of personal data. Worldcoin claims that the images aren’t stored, only the hash code. (Note that verification is also essential for the founders’ future goal of distributing universal basic income to individuals worldwide.)
Regardless of how and what data is stored, some people are concerned about the possibility of it being used for nefarious purposes. According to TechCrunch, hackers have successfully gained control over Worldcoin Orb operators’ dashboards. This lends credibility to concerns over safeguarding biometrics data.
In addition to this justified apprehension regarding data collection, it remains to be seen whether the token will really have any intrinsic value. The premise behind Worldcoin is rooted in global wealth redistribution via universal basic income, as anyone can earn the token merely by scanning their irises. But if the token itself is worthless, then owning the tokens is tantamount to owning Monopoly money — so to speak — with no use case in the real world.
Its Potential
While Worldcoin has ambitious goals (as well as many challenges to overcome to achieve those goals), it has great potential to improve personal security and transactions, mitigate the spread of misinformation/disinformation and ensure fair money distribution. Unfortunately, there are numerous myths surrounding Worldcoin that its creators aim to debunk.
One of these is that Worldcoin stores iris images in a database. However, Worldcoin insists that the iris image is destroyed once Worldcoin assigns a unique World ID to a user. The biometric identification process itself allows Worldcoin to confirm that the individual is a real, living human. The use of the assigned identification number for that image supports verification without the future use of personal data or biometrics.
Another myth is that Worldcoin only serves individuals in developing countries. In fact, Worldcoin does operate in underserved and remote locations to help those with limited access to verify their identities, but it’s also increasingly being adopted in the developed world.
Some people believe that Worldcoin is a centralized, closed project, but the project’s creators claim otherwise. The team states that while Worldcoin was initially developed by a core group, the Worldcoin Foundation was later built to support the independent growth and development of the platform by engaging its community. More than a thousand developers worldwide contributed to Worldcoin's development in 2022. In addition, GitHub repositories have been used to distribute different types of hardware files. These facts highlight that Worldcoin is on its way to becoming fully decentralized.
Please note that none of the information above should be taken as financial advice. Due to the inherently volatile nature of altcoins, always conduct your own research before investing in projects such as Worldcoin.
The Bottom Line
Worldcoin has the potential to transform social and financial services globally through its unique identification verification process. However, it faces misconceptions and myths that deter interest in its adoption. Additionally, the value of the token itself and its real-world use cases remain uncertain. Such concerns need to be firmly addressed if Worldcoin truly aims for worldwide adoption.
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