Worldcoin: A Decentralized Protocol for Human Identity and Economic Inclusion

Worldcoin is an open-source protocol that aims to provide universal access to the global economy regardless of country or background. It is designed to become the world’s largest human identity and financial network, giving ownership to everyone. All with the intention of welcoming every person on the planet and establishing a place for all of us to benefit in the age of AI. In this blog post, we will explore what Worldcoin is, how it works, and why it is unique among other cryptocurrency projects.

What is Worldcoin and Why Do We Need It?

Worldcoin is a protocol, or a system of rules, that enables anyone to join its network by verifying their identity using an iris scan. The iris scan is performed by a device called an orb, which is a spherical scanner that captures a high-resolution image of the eye. The orb then encrypts the image and sends it to the Worldcoin network, where it is matched with a unique identifier called a World ID. The World ID is a proof that the person is a human and not a bot or a fake identity.

The World ID also serves as a gateway to access the Worldcoin network and its benefits. One of these benefits is the ability to receive Worldcoin’s native token, WLD, which is a cryptocurrency that can be used to store and transfer value. WLD is distributed to every verified human on the network as a form of universal basic income (UBI), meaning that everyone gets a fair share of the network’s value creation. WLD can also be used to participate in the network’s governance, where users can vote on proposals and decisions that affect the protocol.

The main goal of Worldcoin is to create a more human and inclusive economic system, where everyone has an opportunity to participate and benefit from the internet economy. Worldcoin believes that by providing a reliable way to authenticate humans online, it can counter the threats of bots and fake identities that are facilitated by artificial intelligence (AI). Worldcoin also believes that by providing a universal and fair distribution of its cryptocurrency, it can empower people to access financial services, education, health care, and other opportunities that are otherwise inaccessible or unequal.

How Does Worldcoin Work?

Worldcoin works by using a combination of blockchain technology, cryptography, and biometrics. Blockchain technology is a system of distributed databases that store records of transactions and events in a secure and transparent way. Cryptography is a method of encoding and decoding information using mathematical techniques. Biometrics is a field of science that uses physical or behavioral characteristics to identify individuals.

Worldcoin uses blockchain technology to create its own layer 2 network on top of Ethereum, which is one of the most popular and secure blockchains in the world. A layer 2 network is a secondary network that runs parallel to the main blockchain, but with faster and cheaper transactions. Worldcoin uses its layer 2 network to store and process its data requests, submissions, disputes, and votes.

Worldcoin uses cryptography to encrypt and decrypt its data using public-key encryption, which is a system that uses two keys: a public key and a private key. A public key is a string of characters that can be shared with anyone, while a private key is a string of characters that must be kept secret. A public key can be used to encrypt data, while only the corresponding private key can decrypt it.

Worldcoin uses biometrics to identify and verify humans using their iris scans. The iris scan is one of the most accurate and unique biometric features, as it has more than 200 distinctive patterns that are stable throughout one’s lifetime. The iris scan is also non-invasive and contactless, as it does not require physical contact or personal information from the user.

The process of joining the Worldcoin network involves three steps:

1. Scan: The user visits an orb location, where an operator guides them through the scanning process. The user looks into the orb for about 10 seconds, while the orb captures an image of their eye. The image is then encrypted by the orb using the operator’s public key and sent to the Worldcoin network.
2. Verify: The Worldcoin network receives the encrypted image and verifies its validity using various methods, such as checking its quality, size, format, etc. The network then decrypts the image using the operator’s private key and generates a hash from it. A hash is a fixed-length string of characters that represents the original data but cannot be reversed back to it. The hash is then matched with an existing database of hashes to ensure that it belongs to a new user and not a duplicate.
3. Receive: If the verification is successful, the user receives their World ID, which is linked to their hash and stored on the blockchain. The user also receives their first allocation of WLD tokens, which are transferred to their wallet address. A wallet address is another string of characters that represents the user’s account on the network. The user can then use their wallet address to access and manage their WLD tokens.

What Makes Worldcoin Unique?

Worldcoin has several features that make it stand out among other cryptocurrency projects:

• Human-centric and inclusive: Worldcoin is focused on providing a reliable and secure way to authenticate humans online, which is essential for creating a more human and equitable internet. Worldcoin is also inclusive, as it aims to welcome every person on the planet regardless of their country or background. Worldcoin does not require any personal information, identification documents, or bank accounts from its users, only their iris scans.
• Decentralized and transparent: Worldcoin is decentralized, meaning that it is not controlled by any central authority or intermediary. Worldcoin is governed by its community of users, who can propose and vote on changes to the protocol. Worldcoin is also transparent, as all its data requests, submissions, disputes, and votes are recorded on the blockchain and visible to everyone.
• Innovative and scalable: Worldcoin is innovative, as it uses a novel combination of blockchain technology, cryptography, and biometrics to create its network. Worldcoin is also scalable, as it uses a layer 2 network to achieve faster and cheaper transactions than the main Ethereum blockchain.

Conclusion

Worldcoin is a decentralized protocol that aims to provide universal access to the global economy regardless of country or background. It is designed to become the world’s largest human identity and financial network, giving ownership to everyone. All with the intention of welcoming every person on the planet and establishing a place for all of us to benefit in the age of AI.