What Is Sam Altman’s Biometric Project, And How Does It Work In India?

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(Source: The Hindu, 07/31/23)

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Why in the news?

• Recently, Worldcoin, an ambitious project initiated by OpenAI CEO Sam Altman, is reintroduced with the objective of creating a global digital network for individuals to claim a stake in the digital economy. Through the use of iris scanning, participants can obtain a World ID and the cryptocurrency Worldcoin [WLD].
• The project gained renewed attention after Altman's success with OpenAI's ChatGPT, although it had faced criticism and uncertainty during its beta launch in 2021.

What is Worldcoin?

• Worldcoin is an initiative aiming to establish a digital network that allows everyone to have a stake in the digital economy.
• Worldcoin utilizes a device called "Orb", operated by volunteers known as 'Orb operators,' to scan individuals' iris patterns and collect biometric data, providing them with a unique World ID through the World app.
• The World ID enables participants to receive the cryptocurrency Worldcoin [WLD] at regular intervals or conduct transactions.
• This process, known as "proof of personhood," ensures a fair distribution of crypto by preventing multiple sign-ups.

How does it work?

• Users need to scan their irises or get scanned by volunteers called "Orb operators”.
• Volunteers receive basic training and a biometric device with which to scan irises.
• Orb operators can rent out the Orb to others for iris scanning.
• Users with a scanned iris and World ID can claim the WLD cryptocurrency, which they can use for transactions (if legal) or hold for potential price appreciation.
• However, WLD can also be bought or sold without scanning or using the app, making it similar to a standard digital currency.
• Orb operators are rewarded with WLD tokens for signing up more people to the Worldcoin network.
• WLD is a token based on the Ethereum blockchain, similar to Ethereum's native coin, Ether.
  • Anyone can create a token that runs on the Ethereum blockchain. WLD is one such cryptocurrency.

How does Worldcoin aim to tackle privacy?

• The Worldcoin scan irises as it aims to be inclusive by using biometric information to prevent duplication, citing India's Aadhaar system as an example of effective biometrics.
• Worldcoin uses zero-knowledge proofs (ZKPs) for user privacy and states that it is Europe’s General Data Protection Regulation (GDPR) compliant.
  • Zero-knowledge proofs (ZKPs) are a cryptographic method used to prove knowledge about a piece of data, without revealing the data itself.
• User data is encrypted and not sold, though it may be shared with third parties such as vendors, service providers like banks, or even the police and government when necessary.
• World ID applicants are not required to provide personal details, and images collected by the Orb are deleted by default unless users opt for Data Custody.

Concerns

• Use of biometrics: NSA whistleblower Edward Snowden, pointed out that even if biometric scans were deleted for privacy, the unique identifier for the scan would still match future scans of the same person's eyes. This raised concerns about the long-term privacy implications of using biometric data in Worldcoin's system.
• Fluctuation in Worldcoin’s price: Like any other cryptocurrency, Worldcoin is subject to fluctuations.
• Scamming: If a user is unable to spot a malicious project’s red flags or secure their own digital wallets, the chances of being scammed or even hacked are high.
• No responsibility over Orb Operators: Worldcoin has stated that its Orb operators receive basic training and are expected to adhere to a strict Code of Conduct. However, the operators are not considered employees of Worldcoin.
• Lack of awareness: MIT Technology Review in 2022, said that Worldcoin scanned the eyes of underprivileged people in emerging economies across South America, Asia, and Africa during the COVID-19 pandemic.
• The report noted that several people didn't understand the project's aims and were tempted by promises of rewards from Orb operators.
• Previous restriction in the USA: WLD was previously restricted in the U.S. due to stringent regulations surrounding the classification of digital currencies as securities or commodities.
• Crypto companies distributing such digital currencies without proper registration and compliance with the U.S. Securities and Exchange Commission (SEC) may face accusations of selling "unregistered securities" and potential legal actions.

Status of world coin

• The company claims to have reached two million users since May 2021.
• Worldcoin has listed 18 locations, mainly in Delhi, Noida, and Bangalore, where Orb operators are scanning people's eyes. These locations include popular malls and metro stations in these cities.

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FAQs

MCQ

Question: With reference to Worldcoin, consider the following statements:

1. The Worldcoin initiative is aimed at creating a global identity and financial public network launched by the world bank.
2. The initiative involves scanning people's eyes and in return, they receive cryptocurrency and a World ID through the World app.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2