Worldcoin Launches Human-Centric Layer-2 Blockchain

Worldcoin, an initiative from OpenAI founder Sam Altman, is introducing World Chain, a layer-2 blockchain based on Ethereum. This blockchain aims to prioritize authenticated humans over AI and trading algorithms. Users who verify their identities through Worldcoin's "orb" device will enjoy benefits like reduced fees, faster transactions, and priority blockspace. World Chain will operate within the OP Stack framework, allowing for cheaper fees and faster speeds compared to direct Ethereum transactions. This move towards an independent blockchain provides greater control and optionality for the project while potentially lowering costs for users.

Worldcoin Launches Layer-2 Ethereum Blockchain, Prioritizing Human Users Over Bots

By Sam Kessler

April 17, 2024

New York City, NY - Worldcoin, the crypto startup founded by OpenAI's Sam Altman, has announced the launch of a layer-2 Ethereum blockchain. The new chain, dubbed World Chain, will prioritize verified humans over artificial intelligence (AI) bots and trading algorithms, aiming to reduce the growing influence of automation on blockchain networks.

Background: Worldcoin's Mission

Worldcoin is a blockchain network focused on decentralizing the future and enabling universal access to the digital economy. The project aims to create a decentralized identity system based on proof of personhood, ensuring that each account is associated with a unique human being.

World Chain: A Layer-2 Solution

World Chain is a layer-2 network built on top of Ethereum using Optimism's OP Stack framework. Layer-2 solutions are designed to alleviate congestion and reduce transaction fees on the main Ethereum blockchain by bundling transactions and processing them off-chain.

World Chain will offer significantly reduced fees for users compared to directly transacting on Ethereum. By prioritizing transactions submitted by verified humans, the network aims to mitigate the surge in bot activity that has driven up fees on other blockchains.

Iris-Scanning Technology and Verified Humans

Worldcoin is known for its unique iris-scanning technology, which is used to create a "World ID" digital passport for each user. This process ensures that account holders are real people and prevents bots or multiple accounts from being created.

On World Chain, verified humans will enjoy priority block space, ensuring faster transaction processing times. This prioritization will enhance the usability and accessibility of blockchain applications for legitimate users.

Addressing Privacy Concerns

Worldcoin's iris-scanning technology has raised privacy concerns among some. However, the company emphasizes that the data collected is encrypted and not stored centrally, minimizing the risk of misuse.

The project has also implemented additional privacy-enhancing features and has taken steps to address concerns raised in a critical MIT Technology Review exposé.

Growing Adoption and Integration

Despite initial skepticism, Worldcoin has gained significant traction, onboarding over 10 million users in 167 countries. The project's World App integrates with popular crypto protocols and offers exclusive functionality to orb-scanned users.

Worldcoin is the second-largest protocol on OP Chain by transaction volume, with its WLD token boasting the largest market cap on the chain behind ETH and OP.

Benefits of World Chain

World Chain offers several benefits:

• Reduced fees: Layer-2 architecture provides significantly lower transaction fees compared to Ethereum.
• Prioritization of humans: Verified human users receive priority block space, ensuring faster transaction processing.
• Built-in bot-vetting: The network's design mitigates the impact of bots and trading algorithms, preventing them from clogging the chain.
• Integration with other wallets: World ID will be compatible with wallets beyond World App, enabling other applications to integrate verified human identity.
• First-class currency status for WLD: WLD becomes a first-class currency alongside ETH, usable for paying network fees.

Future Outlook

The launch of World Chain is a significant milestone for Worldcoin. It allows the project to scale its user base, reduce costs for users, and further embed its focus on verified human identity into the blockchain ecosystem.

With the rise of AI and the increasing influence of automation on the internet, World Chain's prioritization of human users is a timely and necessary step towards ensuring the accessibility and integrity of blockchain networks.

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About Sam Kessler

Sam Kessler is CoinDesk's deputy managing editor for tech and protocols. He reports on decentralized technology, infrastructure, and governance. He owns ETH and BTC. Follow him on Twitter.