Last updated:
April 17, 2024 11:06 EDT
| 3 min read
Source: Worldcoin
Worldcoin, the cryptocurrency initiative co-founded by Sam Altman of OpenAI, has unveiled a novel blockchain network with the aim of integrating all individuals onto the chain.
The latest World Chain is designed to expand the capacity of both Worldcoin and the broader Ethereum ecosystem to encompass over 1 billion users, as per the statement provided to Cryptonews.
Anticipated to be released in a developer preview shortly, the full launch of World Chain is scheduled for later this year.
Transitioning from OP Mainnet
As per the announcement, user transactions from Worldcoin constitute approximately 44% of the activities on Optimism, a Layer-2 scaling solution for Ethereum.
This positions Worldcoin as the leading application on the network.
However, during peak periods, this percentage typically exceeds 80% and occasionally surpasses capacity limits.
Acknowledging the substantial scale and rapid expansion of the user base, the Worldcoin team has decided to transition to a dedicated network.
The migration to a dedicated network is expected to yield significant benefits, the team stated.
Unveiling World Chain, a revolutionary blockchain tailored for humanity ⚪️ pic.twitter.com/qNb7S3vqut
— Worldcoin (@worldcoin) April 17, 2024
Emphasis on Verified Individuals
Addressing the prevalence of automated transactions on the blockchain, Worldcoin highlighted that around 80% of these transactions are automated, with many serving legitimate purposes.
However, there are also unproductive automated processes, such as yield farming bots, which contribute to network congestion and elevated fees.
In response, World ID is introduced to tackle this challenge on the new chain.
While transactions from all users will be accepted on this open and permissionless network, those from verified individuals will receive priority for expedited confirmation.
Striving for maximum inclusivity and privacy. pic.twitter.com/QyY8S4GcMx
— Worldcoin (@worldcoin) April 5, 2024
The new chain aims to alleviate network congestion and high fees by granting verified individuals a certain amount of free gas for casual transactions and prioritizing their blockspace over automated processes.
This initial gas allowance is set to reduce the initial barriers for users and will be initially supported by the Worldcoin Foundation.
Furthermore, the protocol intends to establish a balance where gas for casual users is eventually sustained by fees from automated processes and power users.
While ETH will remain the native token, users will have the option to pay fees using WLD.
Upon claiming their WLD grants biweekly, verified individuals can promptly utilize them for applications.
Additionally, the team pledges to empower developers to reach millions of authentic users worldwide with applications geared towards practical utility.
Focusing on Everyday Applications
The World Chain does not aim to cater to every conceivable blockchain use case, as stated in the announcement.
Instead, it aims to serve as an ecosystem for decentralized financial and identity applications that prioritize practical utility in daily life.
To achieve this, the project will leverage World ID’s Sybil resistance and will revolve around Worldcoin, stablecoins, payments, rewards, ramps, lending, swapping, and more.
World Chain will be seamlessly integrated with the Worldcoin protocol to expedite its expansion and will utilize World ID’s Proof of Personhood for sybil-resistant applications.
Moreover, the chain will be open source and permissionless, ultimately owned and governed by the community.
Ethereum will secure the chain as a Layer-2 solution, tailored for scalability within the Superchain ecosystem.
Furthermore, World ID and WLD will serve as neutral public assets that can be utilized and deployed on networks beyond World Chain.
Insights into the World App metrics pic.twitter.com/zc4RNn4Ypt
— Worldcoin (@worldcoin) April 14, 2024
Since its inception in July 2023, Worldcoin has amassed 10 million users across 160 countries who have established a World ID and a compatible wallet.
These users have conducted 75 million transactions using their wallets.
As of the latest data, WLD’s value has decreased by 0.8% in the past 24 hours.
Source: coingecko.com
Reported by CoinGecko, the current trading price stands at $4.95.
Over the past week, it has dropped by 24%, and within the last month, the decline amounts to 46%.
Its peak value of $11.74 was achieved on March 10, 2024, marking a subsequent decrease of nearly 60%.