Hardly any crypto project benefited from the hype about AI as much as Worldcoin, sponsored by OpenAI boss Sam Altman. It provided a technical answer to the challenges posed by the progress of artificial intelligence: a system that differentiates between humans and machines. Via a World ID, which serves as an identity card and wallet at the same time – for the cryptocurrency Worldcoin. So far, the project has relied on the tried and tested Ethereum blockchain, or more precisely: the Layer 2 blockchain Optimism. As BTC-ECHO learned in advance, a change is imminent in the summer to the upcoming World Chain. It is also committed to the principle: humans first.
People against bots
“World Chain is a new blockchain built for people,” Worldcoin announces its new blockchain. One might ask: for who else? But a lot of things in the crypto space are now automated, via bots. This is where they want to apply the leverage: “Verified people receive priority in block space over bots and a quota of gas for occasional transactions,” says Worldcoin.
Bots are actually becoming more and more of a problem. The capacities of a blockchain are limited. If these are full, the fees increase. Worldcoin puts the proportion of bots in blockchain transactions at “up to 80 percent”. These include a large number of “unproductive bots”, for example for “airdrop farming”. In the future, transactions created by “verified people will be prioritized for faster confirmation times via World ID”.
Change in summer
Currently, Worldcoin runs on the Optimism Network, a scaling solution for the Ethereum network. But space is getting tight: “Worldcoin user transactions currently account for around 44 percent of the OP Mainnet’s activity, making it the largest application on the network,” says Worldcoin. At peak times the proportion is “often over 80 percent”. Given this growth rate, it is time to “move to a dedicated network.”
The project did not reveal too much technical information in advance. “The network will be deeply integrated into the Worldcoin protocol,” it says, “to accelerate growth and leverage World ID’s Proof of Personhood.” Additionally, it is “secured by Ethereum as L2 and designed for scalability alongside the Superchain ecosystem.” Worldcoin emphasizes that the blockchain will remain public and open-source, and will “ultimately be managed independently by the community.” The start date is “probably this summer”.
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Blockchain is intended to meet demand
The switch to its own blockchain is therefore primarily expected to provide a growth spurt. By expanding capacities, users would benefit from faster and cheaper transactions. The World Chain will be “at the forefront of scaling and decentralizing the Layer 2 paradigm on Ethereum alongside the Superchain ecosystem,” according to Worldcoin.
The stated goal: “Apps that are designed to be useful for everyday life”. World Chain is designed as an “ecosystem of decentralized finance and identity apps” that “focus on utility for everyday life.” This includes transactions with Worldcoin and stablecoins, as well as functions such as lending or swapping.
Ten million registrations
Worldcoin got off to a quick start, probably thanks to the media hype surrounding ChatGPT and its foster father Sam Altman. After less than a year on the market, according to Worldcoin, over ten million people have registered for a World ID. It acts as a kind of digital ID card that is also used as a wallet. 75 million transactions have now been carried out. Five million of the users had “verified the World ID with an Orb”.
However, with the worldwide collection of biometric data, the project was criticized from the start. Concerns about a lack of data protection have put the project under surveillance in some countries. In France, Spain, Argentina, Kenya and Hong Kong, OpenAI boss Sam Altman’s crypto project is being examined for violations of data protection laws. In Germany, the Bavarian State Office for Data Protection Supervision investigated.
Wolrdcoin responds to criticism
These were problematic developments for the external perception of the project. The pressure increased. This is probably why Worldcoin recently “introduced an option to delete the World ID,” as Tim Wybitul, partner at Latham & Watkins, which represents Worldcoin in negotiations with data protection supervisory authorities, explains to BTC-ECHO. This, says Wybitul, is “an important step towards the best possible data protection and very extensive user control”.
Wybitul explains that there was coordination with data protection authorities such as the Bavarian State Office for Data Protection Supervision. “It reflects Worldcoin’s strong commitment to improving consumer choice and control over their data and ensuring compliance with the principles of the EU General Data Protection Regulation.” This also includes “the possibility of permanently deleting the iris code”.
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