Crypto Project Worldcoin (WLD), Co-Founded by OpenAI’s Sam Altman, Faces Inquiry from UK Data Watchdog.
In a recent report by Reuters, Worldcoin (WLD), a crypto ID project co-founded by Sam Altman, is set to undergo examination by Britain’s data regulator. The project, which utilizes iris scanners to verify users’ identities, has caught the attention of the UK watchdog, prompting further inquiries.
The surge in WLD’s price came after its listing on major exchanges, including Binance, contributing to the project’s popularity. Founded three years ago by Sam Altman and Alex Blania, Worldcoin boasts a “privacy-preserving” World ID system and a digital WLD token that is rewarded to users simply for their human status.
Worldcoin has ambitious plans to deploy 1,500 iris-scanning Orbs across 35 cities worldwide in the coming summer and fall, aiming to meet the global demand for identification services.
As of now, WLD is valued at $2.32, experiencing a 2.8% increase in the last 24 hours.
However, not everyone is entirely convinced of the project’s approach to privacy. Ethereum (ETH) founder Vitalik Buterin has expressed concerns about potential risks associated with Worldcoin. He highlighted four main areas of concern, with privacy being the most significant one.
Buterin pointed out that storing iris scans in a registry could potentially reveal sensitive information, and unauthorized access to this data could lead to privacy breaches. Additionally, accessibility might be an issue, as World IDs may not be accessible to everyone reliably.
Other risks mentioned by Buterin include centralization and security vulnerabilities, as there’s a possibility of a backdoor being added to the system for the benefit of the Worldcoin Foundation.
The concern is that despite the software layer being decentralized, the hardware devices (Orbs) may not be free from backdoors, granting the Foundation the ability to create fake human identities.
Furthermore, security risks could arise if users’ phones are hacked, or if individuals are coerced into scanning their irises to show someone else’s public key. There’s also the potential threat of 3D-printed “fake people” who could bypass the iris scans and obtain fraudulent World IDs.
Buterin’s critique isn’t solely directed at Worldcoin; he acknowledges that similar “proof of personhood” projects could face these security challenges.
It remains to be seen how Worldcoin will address these concerns and how the inquiry by the UK data watchdog will unfold. As the project gains traction and faces scrutiny, the crypto community will be closely monitoring its developments and responses to potential privacy and security issues.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.