Iris scanning for cryptocurrency! Worldcoin global promotion plan, privacy concerns and token distribution mechanism need to be addressed

Silicon Valley entrepreneur Sam Altman's new startup Worldcoin uses a spherical device to scan people's eyes, enabling them to receive free cryptocurrency. Over the past five months, they have accumulated over 130,000 users worldwide and the number is continuing to rise. However, this technology seems to have sparked considerable backlash online, especially in terms of privacy concerns.

Introducing Worldcoin, a new cryptocurrency that will be distributed fairly to as many people as possible.

Details about how it works: https://t.co/DLcAmUA4u3 pic.twitter.com/xC3W2U6Xi3

— Sam Altman (@sama) October 21, 2021

What is Worldcoin?

The cryptocurrency industry has made significant breakthroughs in technology and applications, gradually catching the attention of traditional financial institutions. However, to date, only 3% of the world's population uses cryptocurrencies. The founding purpose of Worldcoin is to make cryptocurrencies accessible to more people and benefit from this evolving industry.

To achieve this goal, Worldcoin aims to have people worldwide use the same currency, giving rise to the currency named Worldcoin. The company has also invented a new device called Orb, which scans people's irises using biometric technology, converts the iris image into a hash value, and stores it in a database. Everyone who undergoes iris scanning will receive a free allocation of Worldcoin.

Since iris scanning results in a hash value, the same person's iris cannot produce a second hash value, thereby preventing duplicate registrations and identity theft. Additionally, the company states that it will delete personal iris data, with only the hash value being retained.

So far, over 130,000 people worldwide have participated in this project, increasing at a rate of 700 people per week. Many prominent institutions such as Coinbase, Reid Hoffman, Multicoin, and FTX's Sam Bankman-Fried are investors in this project, with Worldcoin's valuation exceeding $1 billion.

User Privacy Concerns

The founder of Worldcoin, when discussing iris scanning technology, stated:

The entire system fundamentally protects user privacy, with no database used to store biometric data iris data.

However, this technology has received many negative responses on Twitter. Renowned privacy advocate Edward Snowden stated:

While the iris is deleted after scanning, the hash value generated from the iris is stored. This hash value will be used for matching in future scans. Do not use biometric technology for anything.

Furthermore, according to Worldcoin's privacy documents, they will authorize collected data to compliant third-party organizations to use for building machine learning algorithms and facial recognition, among others.

Worldcoin's privacy policy states that they can share data 'with third parties who have a legitimate purpose for accessing it.'

Their job openings mention:

Machine learning algorithms
Facial recognition
Creating larger data sets
Large scale data ingestions

And….

(1/2) pic.twitter.com/51MFkvSDPR

— 𝗠.𝗕𝗧𝗖 🦡 (@m__btc) October 22, 2021

Putting aside privacy concerns, Worldcoin's token distribution mechanism is also a problem. The official website has not released a formal white paper, and apart from the total supply limit of 10 billion and reserving 2 billion for a development fund, little else is known. Although this project has received investments from many renowned institutions, without addressing these sensitive issues, Worldcoin's global development ambitions are likely to face significant obstacles.