The launch of WorldCoin (WLD) is on the agenda today. It has undoubtedly generated excitement and enthusiasm for the vision of a universal currency that promotes global prosperity. However, as with any new technology, it has potential drawbacks. It is also necessary to critically examine these risks.
Dark sides for Worldcoin
There is a worrying aspect to WorldCoin’s approach. It relies on central iris scanning for authentication. Accordingly, this raises important privacy and security concerns. In this article, we cover the downsides of WorldCoin. On the other hand, we address the risks involved in entrusting our personal information to a central institution. Let’s explain each point.
First, let’s talk about the pitfalls of centralization. One of the founding principles of blockchain technology is very important. It is decentralization that aims to eliminate the need for trust in a single central authority. However, WorldCoin’s approach to authentication contradicts this basic concept. There is a downside to relying on a central iris scanning system. It’s about individuals handing over their most private biometric data to a single entity. Thus, they need to create a honeypot of sensitive information that is vulnerable to exploitation.
I thought crypto was about anonymity, privacy and freedom from third party abuse…
…and not about scanning your iris and giving that data to a third party to prove you are human.
If this is the direction of crypto in the future, I may be in the wrong market. #WLD #Worldcoin pic.twitter.com/AKWySoxhgJ
— Duo Nine ⚡ Crypto Alpha (@DU09BTC) July 24, 2023
Privacy breach and surveillance concerns
Even though iris scanning technology is touted for its accuracy and uniqueness, it raises serious concerns about breach of privacy and mass surveillance. Central control over such a powerful identification system is dangerous. It puts individuals at risk of being constantly monitored and tracked, both online and offline. It reveals the potential for this data to be misused by governments, companies or malicious actors.
Worldcoin is taking full advantage of the fact that the vast majority of humans are complete fucking idiots who lack any ability to critically think about why they shouldn’t be exchanging their retina scan for a few dollars worth of absolute shitcoin. pic.twitter.com/TCs644tIqM
— Chris Blec (@ChrisBlec) July 24, 2023
On the other hand, it raises worrying questions about the erosion of personal and civil liberties. Also, no system is immune to data breaches. Centralized repositories of sensitive information pose a higher risk of cyberattacks. Successful hacking of the iris scan database can lead to identity theft, fraudulent transactions and even blackmail with devastating consequences. Individuals may find themselves at the mercy of hackers who can use their biometric data for nefarious purposes.
Worldcoin and lack of anonymity and profiling
Anonymity has been one of the major lures of cryptocurrencies, allowing users to transact without revealing their real-world identities. But with WorldCoin’s centralized iris scanning system, anonymity is compromised.
Scan your eye to begin
ChatGPT’s parent company Open AI just announced that their digital currency is going live, called World Coin
you have to scan your eye to sign up for their digital ID, and they “might” pay you Universal Basic Income which comes from ai
Ethereum’s founder… pic.twitter.com/lABlug7RMz
— Crypto Tea (@CryptoTea_) July 24, 2023
Users are forced to link iris data to their digital wallets, allowing authorities or companies to trace transactions back to individuals. This leads to profiling and discrimination based on financial background or spending patterns. It also further erodes users’ trust in the system.
Exclusion of Worldcoin and marginalized communities
Requiring individuals to use iris scanning for authentication can lead to the exclusion of marginalized populations that do not have access to the necessary technology or have physical conditions that preclude iris scanning. This exacerbates existing inequalities. It also contradicts the concept of financial inclusion that WorldCoin claims to promote.
Worldcoin distributed ~25 WLD to 90,000 participants, totaling 2.25M to the global community. So who on earth is selling blocks of size 400,000 WLD, ie 20% of the entire global community's supply?
Anyone have more info on the token distribution today / where this supply is from? pic.twitter.com/YV2JdRHpr7
— DeFi^2 (@DefiSquared) July 24, 2023
On the other hand, centralized systems create a single point of failure as they rely on a central authority to protect and verify data. Any technical problem, power outage or glitch in the central system can paralyze the entire network, causing users to be unable to access their funds or make transactions.
State surveillance and control
Central iris scanning raises concerns about government oversight and control over financial transactions. Governments will use this technology to closely monitor citizens’ financial activities. It could also potentially violate privacy rights and suppress opposition. Not to mention the fear of taking punitive measures for unpopular or political views. Accordingly, it can deter individuals from using WorldCoin. This, in turn, will lead to a less diverse and vibrant ecosystem.
Results
WorldCoin WLD’s ambition to create a universal currency for global prosperity is commendable. However, the negative aspects of the central iris scanning approach cannot be ignored. Privacy breaches, vulnerabilities, exclusion of marginalized communities and potential government surveillance pose significant risks to user trust. Also for greater decentralization in the cryptocurrency space.
The world is moving towards a digital age. However, it is vital to strike a balance between technological innovation and the protection of individual rights and freedoms. It is important to adopt advanced authentication methods that prioritize user privacy and decentralization while maintaining security. This will pave the way for a more equitable and inclusive future for cryptocurrencies. cryptocoin.comAs users and stakeholders, it is crucial to critically assess the risks and consequences of any new technology.
