Worldcoin, the crypto identity system started in part by OpenAI Chief Executive Officer Sam Altman, is going to continue to grow in importance, despite the controversy around the project.
That’s the view of Chris Perkins, president of crypto venture firm CoinFund, which has backed Worldcoin since at least 2021. The project uses a device called an orb to scan users’ eyes in order to generate a unique digital identity that also allows them to receive the Worldcoin crypto tokens that were released last week.
Called World ID, the identity gives holders “proof of personhood” at a time when artificial intelligence is becoming more and more prominent.
“As we move forward into this environment, it’s going to be really important to understand proof of personhood — who’s a human and who’s a bot,” Perkins said in an interview with Bloomberg Television Tuesday.
But Worldcoin has fostered debate over whether its data collection practices are deceptive and exploitative and whether it has proper security in place. There’s some evidence for concern. Worldcoin operators who signed up new users had their login credentials stolen, and there were World IDs being sold on digital black markets, while European regulators are examining the project over privacy concerns. Worldcoin upgraded its security in response to the incidents.
Perkins acknowledged the controversy around the project, but said that other platforms, including Clear Secure Inc.’s airport fast-track service and Apple Inc.’s iPhones use biometric data.
“We believe the team is really focused on privacy,” Perkins said of Worldcoin, noting that the project uses zero-knowledge proof technology for additional security.
And while users in the US can have their eyes scanned in order to obtain a World ID, they are currently unable to receive any of the project’s WLD crypto tokens due to a lack of regulatory certainty in the US. Perkins said that greater clarity around whether or not crypto tokens are securities in the US will pave the way for the release of WLD in the US.
The Worldcoin token is currently at $2.32, as of 2pm New York Time, having previously reached an all-time high of $3.58, according to CoinMarketCap.
--With assistance from Kailey Leinz.
