Worldcoin: Silicon Valley's new AI-driven Expedition to UBI

?? UBI - A Brief Journey from Antiquity to Modernity

Universal Basic Income (UBI) represents a paradigm shift in societal and economic thinking - a model of welfare where all residents, irrespective of their socio-economic status, receive a recurring, unconditional sum of money from a governing authority. The appeal of UBI lies in its universality, its provision of basic sustenance, and its nature as income - a cash-based, flexible form of support.?

The key difference between UBI and unemployment benefits is conditionality. UBI is unconditional - everyone gets it, regardless of whether they are employed, unemployed, or not looking for work at all. This characteristic can alleviate some of the issues associated with unemployment benefits, such as the "welfare trap," where people may be discouraged from seeking employment because they fear losing their benefits. This unique characteristic could pave the way for a healthier economy by stimulating consumer spending, providing financial stability for more individuals, and offering the freedom to pursue education, creative endeavors, or entrepreneurial activities.

The concept of UBI traces its roots to the earliest human societies and has evolved in sophistication and applicability over millennia. The echoes of a UBI-like system can be found in ancient Rome when Gaius Gracchus sanctioned the distribution of "corn doles," providing subsidized or free grain to Roman citizens. This antiquated form of support represents an early endeavor towards societal equity and welfare. As we transition into the Renaissance, we see the philosophical writings of Thomas More in "Utopia," articulating the idea of a guaranteed income for all. More's vision was steeped in the belief that poverty was the true catalyst of crime, not individual character, and that universal income could mitigate social unrest.

By the late 18th century, this concept evolved further, as articulated by American Founding Father Thomas Paine in "Agrarian Justice." Paine proposed a "national fund," providing a sum of 15 pounds to every adult at the age of 21, an early attempt to address income inequality through wealth redistribution. The contemporary discourse around UBI took shape in the 1960s, with key figures like Martin Luther King Jr. and economist Milton Friedman championing its principles. King underscored the necessity of a guaranteed income in his book "Where Do We Go from Here: Chaos or Community?," whereas Friedman proposed a variant of UBI, the "negative income tax." This policy aimed to supplement the income of those below a certain threshold, reinforcing the safety net for the economically vulnerable.

?? UBI in Practice - Learning from Pilot Programs

A myriad of pilot programs conducted over recent decades have brought to light the practical implications of UBI. The Alaska Permanent Fund, initiated in 1976, offers a notable demonstration of UBI in action. This sovereign wealth fund, which originates from oil royalties, makes judicious investments across a diversified portfolio, including bonds, stocks, real estate, infrastructure, and various private entities. Starting from 1982, an annual dividend from the fund has been shared among all residents of the state, essentially creating a version of UBI at the state level.

Global endeavors in exploring UBI have also made some strides, with Finland leading a notable experiment. In this ambitious pilot, an unconditional monthly allowance of €560 was given to 2,000 unemployed individuals. The goal was to investigate whether an unconditioned, guaranteed income could spur employment and streamline the social security apparatus. The outcomes, detailed in the reports released by Finland's social security institution, KELA, were complex and multi-layered. The impact on employment was not striking, with participants finding work at a similar rate to those in a control group.

Beyond employment, the trial illuminated other significant effects of UBI. Recipients exhibited better mental health, greater financial security, and increased trust in social institutions compared to the control group. Reports of stress, depression, sadness, and loneliness were reduced among the UBI group, and they generally held a more positive view of their economic situation. They also demonstrated more trust in societal entities, ranging from political parties to law enforcement and judicial bodies. While the Finnish experiment did not make a dramatic difference in terms of employment, it underscored the potential of UBI to enhance individual well-being and societal trust.

?? The Fusion of UBI, AI, and the Blockchain - A Vision of Worldcoin

As we transition into an era of accelerated technological growth, particularly in the realm of Artificial Intelligence (AI), the prospect of AI replacing a significant portion of the workforce emerges. This imminent displacement begs the question: Can we leverage this AI revolution to ensure economic stability through a UBI system? The paradigm is shifting from human labor to an AI-driven economy, potentially laying a robust material foundation for UBI implementation.

However, before embarking on the ambitious journey of AI-driven UBI, we must confront an impending challenge: the fair and secure distribution of UBI. In the traditional world, governments enforce a 'proof of personhood' system through National IDs and SSNs to ensure that welfare benefits reach their intended recipients without duplication or fraud. This system, however, is riddled with concerns about personal data safety.

Enter Worldcoin, a groundbreaking initiative by OpenAI CEO Sam Altman. Worldcoin intertwines technology, finance, and social policy, aiming to create a fair and efficient UBI distribution system. Its unique platform amalgamates AI, blockchain, and biometrics, laying the foundation for a decentralized 'proof of personhood' system. This ensures a global network of verified human users while prioritizing data privacy. The linchpin of Worldcoin's innovative solution is the "Orb", a physical device designed to generate a WorldID for each person. WorldID, a unique identifier, is created by scanning an individual's iris with the Orb. Similar to fingerprints, irises provide a highly accurate identification method. Once scanned, the Orb generates an identification code from the unique iris structure and securely stores it on Worldcoin's decentralized blockchain network.

Moreover, in the spirit of UBI, Worldcoin has set up a reward system: every person verified by the Orb will receive one Worldcoin per week. This unique approach not only incentivizes participation but also ensures that UBI payments are directed to unique individuals, mitigating the potential for fraud and misuse. Through Worldcoin, a digital infrastructure is established that promises to distribute UBI in a streamlined, efficient, and equitable manner, thereby accelerating our journey towards an AI-supported UBI era.

?? The Challenges of Worldcoin - Ensuring Integrity, Privacy, and Decentralization

Worldcoin's innovative model for unique human identification isn't without challenges. One such concern is Data Leakage. Though the specialized hash of iris scans aims to limit data exposure, potential privacy risks persist. Adversaries could potentially scan an individual's iris forcibly or covertly and then compare this hash against the existing database to identify their participation in the system. Furthermore, there's a possibility that iris hashes could inadvertently leak sensitive medical data such as sex, ethnicity, or health conditions.

Another issue is Potential Centralization. This occurs if a single manufacturer monopolizes the production of Orb devices used for iris scanning. Such centralization contradicts the ethos of decentralization, a cornerstone of blockchain technology. This risk could theoretically be mitigated through governance that restricts the number of valid Orbs each manufacturer can produce. However, this requires robust decentralized governance capable of monitoring the ecosystem and effectively responding to threats. System integrity could also be compromised if a malicious or compromised Orb manufacturer generates unlimited fake iris scan hashes, leading to serious security issues.

The Risk of Selling IDs also poses a challenge. A lot of people in the world are not even aware of proof-of-personhood protocols, might exchange their registration for $30 without understanding the long term implications. One potential solution could be allowing individuals to re-register, thereby canceling their previous IDs. Yet, this necessitates widespread protocol awareness and readily available Orbs to ensure practical, on-demand registration.

?? Beyond Biometrics - Exploring Social-Graph-Based Verification

Charting the course towards an equitable future, the exploration of UBI in this article illuminates the powerful role technology can play in its implementation. Worldcoin, with its innovative blend of AI and blockchain technology, proposes a compelling model using biometric data for 'proof of personhood.' However, it also reveals the associated challenges—data privacy concerns, potential centralization, and the risk of commoditizing IDs.

The challenge of verifying personhood isn't confined to the use of biometrics. Vitalik Buterin proposed an alternative approach, known as social-graph-based verification, which harnesses the power of an individual's social connections to affirm their identity. In a social-graph-based verification system, a network of already verified identities vouches for the authenticity of an individual. Think of it as a web of trust that expands outwards from one person to another, all linked by social connections. Just as we place trust in our friends and family in daily life, this system utilizes that inherent trust to confirm an individual's identity. The trust vested in a person by their social contacts provides another layer of security that doesn't rely on the collection and processing of personal biometric data.

This method can be particularly useful in decentralized systems, like blockchain networks, where traditional centralized authorities to confirm identities are absent. As we move further into a digital age, the concept of identity is becoming increasingly fluid and complex, and decentralized digital identities can offer a solution that is both secure and respects privacy. Furthermore, it provides a robust alternative to biometric data, which can potentially be exploited if not handled properly. Biometric data, once compromised, cannot be changed or replaced like a password or PIN, presenting significant privacy and security risks. On the other hand, a social-graph-based verification system is dynamic and adaptable, offering increased privacy protection and flexibility.

The path towards a universally accessible income model takes us through uncharted territories and presents challenges such as ensuring the veracity of the social connections in a social-graph-based system and preventing collusion. Despite the potential obstacles, this innovative step forward in the realm of digital identity verification is promising. It could provide a plausible way to combine the need for security, privacy, and ease of use in the ever-evolving digital world, while bringing us closer to realizing the dream of UBI.

As we stand on the brink of this new horizon, it becomes evident that our future explorations will delve deeper into the nuances of social-graph-based verification. We'll rigorously assess its strengths and shortcomings against the biometric approach. The journey through these new frontiers is more than a technological endeavor; it is a quest for economic equity in a world that is becoming increasingly intertwined with automation. We must navigate these frontiers effectively to lay the groundwork for a more equitable future where financial security isn't a privilege, but a right for all.