What is Sam Altman’s biometric project?

Recent Context:

On July 24, OpenAI CEO Sam Altman took to Twitter to formally re-introduce Worldcoin, a project of his that was eclipsed by the popularity of ChatGPT.

What is Wordcoin?

Worldcoin is an initiative to create a digital network in which everyone can claim some kind of stake, and join the digital economy. Using a device called “Orb,” Worldcoin volunteers known as ‘Orb operators’ scan a person’s iris pattern to collect their biometric data and help them get a World ID through the World app. Worldcoin claims it is building the “world’s largest identity and financial public network” open to people worldwide.

The working:

  • The users need to be willing to scan irises and/or get their own irises scanned.
  • Volunteers sign up to be “Orb operators” in their locality and receive basic training and a biometric device with which to scan irises.
  • Orb operators can even rent out the Orb to others to let them scan eyeballs as well.
  • Those who have their irises scanned and collect a World ID can use this to claim the WLD crypto, which they may use for transactions or hold on to the asset in the hope that its price might rise, as it did after launching.
  • However, users can also buy or sell WLD without getting scanned or using the app.
  • In return for signing up more people to the Worldcoin network, Orb operators get WLD, which is a token based on the Ethereum blockchain.
  • Ethereum has a native coin, Ether, which is the second-largest crypto by market capitalisation.
  • However, anyone can create a token which runs on the Ethereum blockchain. WLD is one such cryptocurrency.

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.

What are the 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.
  • World Coin Scan irises: Worldcoin explained that it wanted to include everyone in its network and that using biometric information to avoid duplication was a valid method for this.
  • The company claimed that India had “proven the effectiveness of biometrics” through its Aadhaar system.
  • Worldcoin notes that Aadhaar IDs stopped people from signing up multiple times to benefit from social welfare schemes.
  • The company said that it uses a technology known as zero-knowledge proofs (ZKPs) to maintain users’ privacy.
  • Worldcoin has also said it is fully compliant with Europe’s General Data Protection Regulation (GDPR).
  • Individuals who want to receive a World ID are not required to share their name, phone number, email address, or home address. Images collected by the Orb are used to generate a unique iris code.
  • By default these images are immediately deleted once the iris code is created, unless the user opts in to Data Custody.

The Criticism:

  • Worldcoin was criticized long before its re-launch.
  • A whistleblower pointed out that even if a person’s biometric scans were deleted for privacy reasons — as Worldcoin said it would do — the unique identifier for the scan would match future scans of the same person’s eyes.

Worldcoin and India:

According to the company website, it has. Worldcoin lists 18 locations, largely in Delhi, Noida, and Bangalore, where Orb operators are scanning people’s eyes. Some locations include popular malls and metro stations in these cities.

Conclusion:

While the Worldcoin project’s ambition to create a secure digital identity system is commendable, it has also given rise to legitimate privacy concerns. The collection and storage of biometric data, such as iris scans, raise questions about the potential misuse of this sensitive information. Additionally, the idea of a global identification system may lead to fears of surveillance and centralized control over personal data.