Worldcoin took its place on the leading cryptocurrency exchange Binance today. However, discussions are still on the agenda, as always. So what is this Worldcoin WLD.
What is Worldcoin (WLD)?
Worldcoin uses a zero-knowledge proof system known as “personality proof”. It is also a revolutionary system centered around World ID, a privacy-preserving identity network. This innovative approach effectively protects users’ privacy. On the other hand, it allows them to be validated by others.
In essence, WLD aims to create the world’s largest identity and finance network. As users verify their identity on the WLD network, they are eligible to receive WLD tokens. In particular, the network operates on a one-person-one-vote system, unlike traditional one-token-one-vote systems.
WLD: An ERC-20 Token on Ethereum
As an ERC-20 token on the Ethereum blockchain, WLD transactions primarily occur on the Optimism network, where individuals receive user grants.
The project has raised an impressive $250 million in funding from leading investment firms such as a16z, Khosla Ventures, Bain Capital Crypto, Blockchain Capital and Tiger Global. This financial backing underlines the potential and importance of Worldcoin’s vision for digital identity and finance.
Worldcoin launches crypto token amid controversy
In 2019, Sam Altman, co-founder and CEO of OpenAI, the artificial intelligence (AI) lab that developed the sensational chatbot ChatGPT, is on the agenda again. This time, he co-founded a privacy-protecting digital identity project known as Worldcoin.
Today, on July 24, Worldcoin will launch its own crypto token known as ‘The Worldcoin token’ (WLD). But the entity is on target for its unconventional approach to online authentication and solving income inequality. It also faces criticism in Silicon Valley.
WLD tokenomics and Binance listing
Despite the criticism, Altman managed to persuade investors to back Tools For Humanity, the company behind Worldcoin. Taking advantage of the latest developments in artificial intelligence as a selling point, Worldcoin has attracted great interest from investors. In June, Tools For Humanity raised $115 million in a Series C funding round led by Blockchain Capital, with participation from a16z and other leading investors.
If the interest continues, the value of the Worldcoin token will increase significantly. Also, Altman claims to potentially have more than 2 million users. Accordingly, this means an important bird of luck for other project investors. Regarding tokenomics, the total circulation of WLD tokens is 10 billion units. Accordingly, 75% is dedicated to the Worldcoin community and 9.8% is dedicated to the initial development team. In addition, 13.5% is allocated to investors in Tools for Humanity. The inflation of the token is set to begin after 15 years.
Also, according to Chinese crypto correspondent Colin Wu, Binance, the world’s largest crypto exchange, listed the token today. The token is valued as high as $5.5 today. At the time of writing, it is trading at $2.56. Accordingly, its fully diluted valuation (FDV) in numerical terms is $25.6 billion.
Worldcoin criticism from Ethereum founder
Vitalik Buterin, founder of Ethereum, recently shared his views on the biometric proof of identity system offered by Worldcoin, a cryptocurrency listed on Binance.
In a comprehensive article, Buterin highlighted the importance of decentralized authentication solutions, particularly the concept of proof of identity. This limited form of real-world identity allows a registered account to be controlled by a real individual without revealing his or her identity.
Multiple approaches: From proof of humanity to Worldcoin
Various projects such as Proof of Humanity, BrightID, Idena, and Circles have attempted to address this unique person issue. Founded by OpenAI CEO Sam Altman, Worldcoin offers a unique identity proof system based on advanced biometrics that scans users’ irises through special hardware known as “Orb”. Accordingly, it stands out with its philosophy of filling the gap between artificial intelligence-oriented abundance and human affairs.
However, Worldcoin has come under criticism for potential privacy and security issues with the use of Orb, design flaws in its “cryptocurrency”, and ethical dilemmas stemming from some company decisions.
An evolving landscape: Complementary approaches and open source collaboration
Buterin emphasizes that there is no ideal form of personal evidence. Instead, it aims to combine the strengths of various techniques. He also advocated treating it as complementary. It called for open source technology, third-party controls, and additional checks and balances to ensure that the interests of the community are protected.
Building an effective and reliable authentication system remains a challenge, especially for those unfamiliar with the crypto community. Buterin acknowledges the challenges ahead. He also notes that it may take years to find a working formula.
Valuing proof of identity in the developing world
The various applications of proof of identity come with their own risks. When we look at Cryptokoin.com, lack of proof of personality can lead to a world dominated by centralized identity solutions and closed communities. Emphasizing the value of proof of identity, Buterin expressed hope that progress will be made in this area. On the other hand, he envisioned a future where different approaches were combined into a coherent whole.
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