Artificial intelligence company OpenAI recently launched a project named Worldcoin, aiming to construct the globe’s most extensive identity and financial public network. This project claims to provide every user with a stake in the digital economy.
About Project Worldcoin
Worldcoin is a digital network initiative that accords each participant a share. The project’s premise is to allow everyone to participate in the digital economy. To achieve this, Worldcoin uses a technology called “Orb,” which collects iris biometric data from participants and creates a unique World ID for them via the World app.
Upon obtaining their World ID, users can acquire a cryptocurrency known as Worldcoin [WLD]. To make this network possible, participants need to willingly have their irises scanned. The WLD crypto can be held as an asset, with the hope of future price increases, or used for transactions where legal and feasible.
The Working Process of Worldcoin
Worldcoin asserts that using biometric data to avoid duplication is a valid way of ensuring universal inclusion in its network. This process, referred to as “proof of personhood,” prevents individuals from registering multiple times in exchange for more crypto. Users, therefore, must have their irises scanned and collect their World ID to claim the WLD crypto.
Worldcoin’s Presence in India
Worldcoin has recognized India’s successful use of biometrics through its Aadhaar system. It has listed 18 locations majorly in Delhi, Noida, and Bangalore, where Orb operators are carrying out iris scanning operations.
Criticism of Worldcoin
Since its inception, Worldcoin has faced various criticisms, particularly concerning privacy and data security issues. The validity of biometric scans has also been questioned.
Understanding Cryptocurrency
Cryptocurrency is a digital or virtual currency that employs cryptography for security purposes. It operates independently of any government or institution, making it a decentralized currency. Examples include Bitcoin, Ethereum, and Litecoin. Cryptocurrency transactions are recorded on a public digital ledger known as the blockchain, which is maintained by a global computer network. These computers validate and add new transactions to the blockchain.
Relevance in UPSC Civil Services Examination
A previous year’s UPSC Civil Services Examination posed questions about Bitcoins, a type of cryptocurrency. The exam asked whether certain statements about Bitcoins were correct, with the correct answer indicating that anyone with a Bitcoin address can send and receive Bitcoins from anyone else with a Bitcoin address and make online payments without disclosing identities.
