Don’t get excited about Worldcoin just yet

The digital identification platform Worldcoin has launched its mainnet and native token WLD after three years in development. Co-founded by OpenAI CEO Sam Altman, Worldcoin aims to provide a verified digital identity for each person on earth.

The company proposes to solve the problem of distinguishing real humans from AI by using iris scans to generate secure identification codes tied to users’ “proof of personhood.” Worldcoin claims over 16 million users have registered so far.

However, the launch has sparked backlash over privacy concerns and the regulatory uncertainty surrounding Worldcoin’s data collection practices. Critics argue that biometric data could be misused and that consent mechanisms are unclear.

Several regulators have pushed back or launched investigations into Worldcoin, tempering excitement around the supposedly groundbreaking project. Kenya suspended Worldcoin pending further review, despite it being one of the most active markets. A parliamentary panel called for the project to be shut down entirely there until stringent regulations are enacted.

France’s data privacy regulator CNIL is assessing the iris scanning technology and conditions for storing biometric data. German and UK regulators have also raised questions, with the UK warning that people must be able to freely withdraw consent for data processing without consequences.

Ethereum co-founder Vitalik Buterin published a blog post outlining potential issues with Worldcoin’s “proof of personhood” system, including privacy risks, lack of accessibility, centralization, and security vulnerabilities. As the hardware is proprietary, there could be undisclosed backdoors.

Essentially, while designed to mitigate problems like bots, Worldcoin itself could theoretically spoof identities. The fact that it is not available in the US due to regulatory uncertainty further dampens enthusiasm.

Rather than heralding a new era of AI-resistant digital identity, Worldcoin’s messy launch highlights the difficulties of biometric data collection and the need for thoughtful governance frameworks. It remains unclear whether the benefits outweigh potential misuse of sensitive personal information.

For now, Worldcoin is operationally live after three years of development. But serious regulatory scrutiny and privacy concerns suggest caution is warranted until stronger guardrails and accountability measures are in place. The project may aim to provide convenience, but global scale biometric ID systems raise more questions than answers.