With millions of users, Worldcoin’s concept of a global digital identity system has shown promise after a year.
On July 24, 2023, exactly one year ago today, Worldcoin made its debut internationally with a concept that seemed like it was taken straight out of a science fiction book.
Co-founded by OpenAI CEO Sam Altman, the project aims to launch World coin WLD$2.33, the platform’s native digital token, and a “globally recognized” digital ID in addition to scanning people’s irises using futuristic “orb” style devices to create a universal digital identity and financial network.
The project’s central idea, to use a person’s biometric information to construct a global identity system, was both novel and contentious.
Worldcoin asserted that it may be used for many purposes, such as separating artificial intelligence bots from people and offering a platform to distribute universal basic income (UBI).
The early response to World coin was, predictably, a study in contrasts. Upon its launch, the project garnered considerable attention due to its audacious objectives and prominent support, resulting in the enrollment of over 2.4 million users in just four months.
Regulators and privacy advocates responded to this enthusiasm with just as much skepticism and worry. Large-scale biometric data gathering immediately generated concerns about potential misuse and other related data security issues.
The figures are self-explanatory.
Notwithstanding the worries above, Worldcoin has expanded quickly. The primary wallet for Worldcoin, the World App, has 10 million users in less than a year after it launched.
With two million active users daily and over 70 million transactions completed, the app is available in more than 160 countries, making it one of the most popular self-custodial wallets.
Furthermore, the platform has processed 7.1 transactions per second on average in recent months, maintaining engagement levels. This is likely due to the World App’s ability to streamline regular cryptocurrency interactions by emphasizing the core features of Ethereum and World coin.
Users can use World ID to verify their identity, deal internationally, trade cryptocurrency tokens, and take advantage of Worldcoin Grants in various ways.
Reports indicate that Worldcoin deployed approximately 119 orbs throughout 18 nations by the third quarter of 2023, while exact statistics may take much work to confirm. The project launched a global push to create 1,500 Orbs in July 2024.
Worldcoin is still facing regulatory challenges on a global scale.
While Worldcoin rejoices in its expansion, the project has had to navigate a more complicated regulatory environment in recent months, which has drawn criticism and worries from authorities and privacy watchdogs across the globe.
The recent order from Hong Kong for Worldcoin to stop operations emphasizes the seriousness of these issues. Citing privacy and personal data dangers, the Office of the Privacy Commissioner for Personal Data in Hong Kong served the Worldcoin Foundation with an enforcement notice.
The regulator especially denounced as “unnecessary and excessive” the scanning and gathering of images of the iris and face. This was not an isolated instance, either, as Worldcoin has continued to encounter comparable regulatory obstacles across the globe.
For example, earlier in March, Spain became the first nation to outlaw Worldcoin’s biometric data harvesting techniques. Kenya and Portugal did the same and stopped working on the project.
Germany has started investigating Worldcoin’s compliance with the General Data Protection Regulation of the European Union, while India and South Korea have also opened probes into the company’s data practices.
Decentralized identity solutions in the future
Decentralized identity (DiD) solutions still have a lot of potential, even with the current legislative challenges. Indeed, the global decentralized identity market is expected to develop at an astounding CAGR of 90.3% between 2023 and 2030, with an estimated market value of $647.80 million in 2022.
As a result, as Worldcoin enters its second year, it must simultaneously handle the legitimate concerns expressed by privacy activists and regulators while still pursuing expansion.
The upcoming months will be critical for the project. If it can successfully navigate regulatory obstacles, improve transparency, and uphold user confidence, it will have succeeded in realizing its goal of establishing a truly global, decentralized identification system.
Furthermore, Worldcoin’s development will surely be a hot topic for engineers, legislators, and privacy advocates in the upcoming months as people worldwide struggle with AI’s implications and the necessity of solid DiDs.
