Worldcoin: The Future of Finance or a Privacy Nightmare?

3rd August 2023

More than three years ago, Alex Blania and Sam Altman began working on an idea; how to create a new identity and human financial ecosystem, owned by everyone.

If it worked, it could drastically increase economic opportunity,?scale a reliable solution for distinguishing humans from AI while preserving privacy, enable global democratic processes and eventually show a potential path to AI-funded UBI.

In the fast-paced world of cryptocurrencies, Worldcoin has emerged as a trailblazer, aiming to revolutionize financial inclusion and redefine how we transact and store value. Spearheaded by Sam Altman, the man who blessed us with ChatGPT and OpenAI, World Coin seeks to provide a global digital identification platform that ensures every individual is recognized as a unique human being, not a bot or an AI program. To do this, they are scanning people’s eyes, and collecting an iris code, using a unique eye-scanning device called an Orb.

We embraced ChatGPT, but not so much World Coin..

However, if you have been keeping up with the news, TikTok, YouTube, Twitter or any other social media platform, you can tell that World Coin has received quite a backlash from people all over the world, while others simply saying ‘to hell with the privacy concerns, I am broke and I am going to get the tokens’!

This article delves into the fascinating world of Worldcoin, exploring its mission, functionalities, the challenges it has had since its launch so far, and the impact it might have on Kenya's financial landscape. Finally, what can be done to ensure its success if it is truly authentic?

Understanding Worldcoin's Three-Legged Stool

In order for World Coin to work, three things must happen. Picture a three-legged stool; it stands firm only when all three components are embraced and adopted by users. ?

1.????World ID: The Core of Identity Verification

World ID lies at the heart of Worldcoin's mission. By harnessing the power of the Orb, an eye-scanning device, users can create their World IDs. The Orb captures an individual's iris, generating a unique Iris Code similar to your fingerprints – therefore, your iris code represents you and only you. This code prevents the creation of multiple World IDs, ensuring a fair and secure digital identification process. Each World ID is securely stored on the Worldcoin blockchain, accessible through the World app for seamless authentication.

The whole venture is an attempt at global scale alignment.

Your iris code simply proves that you are a human being and not a robot. Therefore all users of World Coin, will be human beings from anywhere in the world, brought together by a human economic system that allows them to trade effectively and securely regardless of where they are in the world. But finding ways to broadly share the coming technological prosperity, might be the greatest challenge as the issue of eye scanning and data collection seems to not sit well with many.

2.????World App: Gateway to a Decentralized Future

Once you have your unique World ID, enters the second step: Joining World App, which is a cryptocurrency wallet. Yes, a wallet like the one where you have kept your money, only that this wallet is storing digital currency-cryptocurrency tokens called WLD.

The World App, beyond its functionality as a cryptocurrency wallet that houses WLD, Ethereum, and USDC, holds users' World IDs. It empowers individuals to "verify their humanness" on third-party decentralized applications. This ease of access to decentralized banking applications fosters a more inclusive financial landscape.

3.????Worldcoin Token (WLD): A Universal Reward System

Now this is where the juice of it is. As we speak, the number continues to rise by the second, but over 2,000,000 people this week lined up in large numbers all over the world and scanned their irises hoping to get these free tokens.

WLD tokens are the rewards users receive for creating their World IDs and downloading the World App. As an initial incentive, users are granted WLD tokens for their first Orb eye scan. The number of tokens depends on the project's stage and the user's country. Currently, individuals from certain countries can receive 25 WLD tokens upon scanning their eyes on Worldcoin. In Kenya, those tokens which equate to 56 US dollars, that is roughly Ksh.7000, an amount that many are more than willing to claim.

A Journey to Kenya: Promises and Pitfalls

Worldcoin's aspirations have reached the shores of Kenya, a country facing its unique financial inclusion challenges. As an initiative that embraces Universal Basic Income (UBI) through its token distribution mechanism, Worldcoin holds great promise for a nation with a substantial unbanked population.

1.????Financial Inclusion Challenge: Bridging the Gap

Kenya grapples with a large portion of unbanked and underbanked individuals. The traditional financial system often eludes them, making it challenging to access credit and engage in formal economic activities. Worldcoin's biometric scan distribution model offers a direct link to a decentralized financial system, potentially bridging the financial inclusion gap.

2.????UBI and Poverty Alleviation: A Safety Net for the Vulnerable

Kenya has been exploring the concept of Universal Basic Income to alleviate poverty and reduce income inequality. Worldcoin's implementation of UBI aligns with this objective, providing a small amount of cryptocurrency regularly to every verified individual. This could act as a safety net, providing economic security for vulnerable populations.

?? World Coin Activities Suspended in Kenya

Despite its noble intentions, Worldcoin faces several challenges that must be addressed for its successful integration. As of yesterday, World Coin was banned in Kenya, due to several concerns.

There was an uproar in Parliament yesterday as several ministers differed on their opinions concerning World Coin. However, all around the world, the concern is the same: What happens to the vast amounts of data that World Coin will have about these users

1.????Privacy and Security: Safeguarding Data and Identity

The use of biometric scans raises privacy and security concerns. Ensuring the protection of personal data and digital assets from cyber threats is vital. Kenya’s Communications general director Ezra Chiloba and Data Commissioner Immaculate Kassait stated that there are issues of concern with World Coin.

Despite its great ability to shape shift the financial landscape, there lacks clarity as to the security and storage of?the collected sensitive data, the reason behind the monetary inducement for consumer consent, cyber security safeguards, and the fact that the company simply got into the country and started signing people up without getting any licensed permission from the Kenyan Law.

2. Regulatory Compliance: Navigating the Terrain

Worldcoin's innovative approach requires careful collaboration with Kenyan authorities to comply with existing laws and regulations. Striking a balance between innovation and adherence to established frameworks is crucial.

Conclusion

Worldcoin's vision of a global digital identification platform is ambitious and promising. As Kenya suspends its activities amidst data breach and privacy concerns, Worldcoin faces a pivotal moment. Addressing challenges and establishing transparent safeguards will be critical to its success.

If World Coin makes an effort to create more transparency on how it works and educates people on what they are trying to achieve, I think it could be the next big thing. After all, the same skepticism was experienced when blockchain and the rise of Bitcoin and other digital currencies began, yet as more people learned about it, it grew to a trillion dollar industry.

It almost sounds too good to be true. I mean sure, I want the money, but what does the company want to do with my iris code, that is so important to them, they are willing to give away free money to each individual?

Several concerns arise with this new crypto. In an interview with a reporter, Sam Altman claimed that he could not go into the details of how it works on camera, due to regulatory uncertainties in the U.S. This may sound odd, especially considering that he is an American himself. Why not make your product available to your own people? It could be that Sam Altman does not wish to find himself in trouble with the S.E.C like Binance did a few weeks ago, but until they clarify, we don’t really know.

Secondly, World Coin appears to be targeting developing countries, making many wonder whether the move is a trap to lure people to give up sensitive data that could be used against them. The company started by targeting Chile, France, Indonesia, Kenya and Sudan. Several suspicions are also arising with regard to the stipulations in the Terms and Conditions of the World Coin Contract, which do not specify what the collected data will be used for, as well as some clauses going as far as to say that in case of any loss, World Coin is not expected to indemnify any participants.

While Worldcoin holds the potential to transform financial inclusion and empower millions in Kenya, it must proceed with caution and ensure a thoughtful integration into the existing financial ecosystem. The journey to redefine financial access for all is filled with potential rewards and pitfalls, and it remains to be seen how Worldcoin navigates this uncharted territory.

All we can do is wait and see how it goes. But meanwhile, everybody is talking about it, and I thought I should tell you about it so that the next time it comes up in a conversation, you are not left looking clueless.

?Until next week!

?Yours Sincerely,

The Tech Savvy Millennial.