Tools for Humanity, the organization behind Worldcoin, has unveiled World Chain, an Ethereum layer-2 solution set to debut in mid-2024. This permissionless and open-source blockchain is intricately linked with the Worldcoin protocol, with a primary focus on driving the adoption of World ID.
Worldcoin, described on its website as a “free, privacy-preserving, open protocol aiming to become the world’s largest identity and financial public network,” serves the purpose of verifying individual “humanness” in an era dominated by bots and deepfakes. To achieve this, users are required to scan their iris using their phone or gaze into an Orb, converting the biometric data into an encrypted string of numbers. Through a unique algorithm, this code confirms the user’s identity as a distinct human, with validation facilitated through the World ID mobile application.
The company expressed the need to transition to a dedicated network due to the substantial community size and growth rate. Currently, over 10 million individuals from 160 countries have enrolled by scanning their irises, leading to 75 million transactions utilizing verified wallets.
Functioning akin to a digital passport certifying personhood, World ID enables users to authenticate across web, mobile, and decentralized applications, affirming their human status and distinguishing them from bots or AI systems. As an incentive for undergoing the scan, users receive airdropped Worldcoin tokens, currently valued at approximately $5.
Tiago Sada, Tools for Humanity’s Head of Product, emphasized the inevitability of establishing proof of personhood, highlighting the importance of it being open source, decentralized, and privacy-centric. With an estimated 80% of blockchain transactions being automated, the prevalence of bots, particularly in activities like yield farming, contributes to network congestion and elevated gas fees.
World Chain, designed to enhance scalability for new user onboarding, offers developers access to a community of verified World ID users, half of whom engage monthly. While Ether remains the native token, Worldcoin tokens can be seamlessly used to pay fees. This streamlined process allows verified users to immediately utilize their Worldcoin grants within chain applications.
The protocol aims to strike a balance where gas costs for casual users are offset by fees from bots and power users, promoting inclusivity and reducing barriers to entry. However, the response to this initiative remains uncertain, reflected in the decline of Worldcoin token market cap and price.
Despite facing restrictions in certain European markets due to data privacy concerns, Worldcoin operates in Germany for biometric data collection. Additionally, observations have been made regarding the overlap between Tools for Humanity’s endeavors and the challenges accelerated by Sam Altman’s other venture, OpenAI.