Trading Biometrics for Crypto: Fair Trade or Privacy Nightmare?

In a world where data is the new oil, Worldcoin is offering a unique proposition: trade your biometric data for an airdrop of their new WLD token. The project, co-founded by OpenAI CEO Sam Altman, has launched its token, aiming to distribute it to over 2 million people globally who have verified their identities via iris-scanning orbs. The ambitious project has been met with a mix of intrigue and concern, with critics questioning the privacy implications of such a trade-off.

Worldcoin's mission is to enable people to prove their identities online with credentials verified in person.

According to Tools for Humanity, the company behind the project, the project’s core offering is its World ID, an account that only real humans can get. To get a World ID, a customer signs up to do an in-person iris scan using Worldcoin's "orb," a silver ball approximately the size of a bowling ball. Once the orb's iris scan verifies the person is a real human, it creates a World ID.

The project plans to deploy orbs in over 35 cities across 20 countries to accelerate user sign-ups and increase the number of orbs from 200 to around 1,500 by the end of the year.

Here in Singapore, there are currently two orbs in the CBD, at Vega Solutions and OGBC. A company representative told Blockhead that the "response has been great" and a "good number of people" are making appointments for verification. Those verified by an orb will initially receive 25 WLD tokens and periodic grants going forward.

The project's launch follows Worldcoin's migration to the OP Mainnet, an Ethereum Layer 2 scaling solution, last week. It will distribute a total supply of 10 billion WLD tokens, with 80% reserved for users, operators, and the ecosystem. The remaining 20% is set aside for the Worldcoin team and its backers.

However, Ethereum's founder, Vitalik Buterin, has expressed concerns over the project. In a blog post, he questioned the ethics of trading biometric data for potential financial gain and the potential for misuse of such data. Buterin's concerns echo those of many in the crypto community, who worry about the privacy implications of Worldcoin's model.

Worldcoin's WLD token surged 88% on its debut on Monday and reached $3.14, following listings on exchanges like Binance, Huobi, Bybit and OKX. The tokens have since falled to around $2, with a fully diluted valuation of almost $20 billion.

Elsewhere,

• Binance Squares Up Against CFTC: Binance, the cryptocurrency colossus that holds sway over the world's largest trading volume, is gearing up to swat away a complaint from the U.S. Commodity Futures Trading Commission (CFTC). They're throwing down the gauntlet, arguing that the CFTC's jurisdiction doesn't extend to the alleged misdemeanors.
• Yuga Labs Forges Alliance with Japan: The creative masterminds behind the Bored Ape Yacht Club (BAYC) NFT phenomenon, are joining forces with the Japanese government to propel Web3 forward in the Land of the Rising Sun.
• Japan's PM Envisions a Web3 World: In a stirring address at the ongoing WebX conference in Tokyo, Prime Minister Fumio Kishida shared his vision of a world where Web3 is an integral component of the new capitalist order. His speech underscores the expanding acceptance and comprehension of blockchain tech among the global governance elite.
• SBF Bound by Gag Order: Sam Bankman-Fried, the influential CEO at the helm of the crypto exchange FTX, has consented to a gag order in the wake of a New York Times exposé that flagged potential market manipulation worries. The order curbs SBF's liberty to air his thoughts on particular facets of the ongoing legal drama.
• Peek Inside Do Kwon's Crypto Vault: A fresh-off-the-press report has spilled the beans on the eclectic assortment of assets housed in Terra founder Do Kwon's cryptocurrency vault. Two cryptocurrency detectives identified previously unknown wallet addresses, a significant part of which belonged to Terraform Labs. They received 9,519.26 ARKHM, worth approximately $4,950, from the Arkham for their efforts. Among the intriguing mix are heavyweights like Bitcoin, Ethereum, and, naturally, Terra's own champion, LUNA, totaling over $150 million.
• Russia Gears Up for CryptoRuble Launch: In a plot twist set to send ripples through the international finance scene, Russian President Vladimir Putin has green-lighted the debut of the country's Central Bank Digital Currency (CBDC). The "CryptoRuble" is poised for launch in August, heralding a significant leap in Russia's dance with digital currencies.