Worldcoin, the Sam Altman-Backed Iris-Scanning Cryptocurrency Project, Launches Amidst Privacy Concerns

OpenAI co-founder Sam Altman launched Worldcoin in 2023 to give people a digital identity to verify themselves securely and anonymously online.

OpenAI co-founder Sam Altman launched Worldcoin in 2023 to give people a digital identity to verify themselves securely and anonymously online. At a time when AI is rapidly advancing, Altman believed that a new technology was needed to differentiate between machines and humans.

The idea was to scan people’s irises and, in exchange for their personal data, they would be rewarded with a small amount of cryptocurrency, which would inspire more people to sign up. Altman described it as “proof of personhood.” But as the project expanded, it faced backlash over privacy risks, data safety, fairness, and consent.

Tech experts and privacy groups warned that the biometric data from these eye scans is extremely sensitive because the information connects directly to who you are as a person. And since you can’t change your eyes like your password, a hacker could easily stalk or steal from you.

The Electronic Frontier Foundation (EFF) also criticized the project, saying the company was rushing to collect information from third-world countries because the people were unaware of how Worldcoin would use, protect, or delete their data. People would also be less likely to refuse to participate in the project.

In addition, people raised concerns about consent because Worldcoin would sometimes target individuals with limited internet access or education. This means they are less likely to understand the risks and make a more informed decision. Some users claimed they only registered for Worldcoin for the free cryptocurrency but did not know how the company would use their data.

Worldcoin also faced scrutiny over transparency, as it failed to clearly explain how user data was anonymized, who had access to it, and what would happen if the company changed ownership or shut down. Although Worldcoin claimed to anonymize the data, experts pointed out that it could still be traced back to the individual with the right tools. Once a scan is in the company’s database, it could remain there indefinitely.

Due to these mounting concerns, various governments launched investigations into Worldcoin’s practices. Nations like Spain, Portugal, and Kenya are at the forefront of demanding that Worldcoin cease operations in their regions. These actions are unfolding quickly as many governments are integrating new legislation to better protect user interests.

However, after several countries, like Portugal, Spain, Vietnam, and Indonesia, slammed the brakes on Worldcoin, the company quickly tried to save its image and respond to the criticism.

In an effort to regain trust, Worldcoin shared the code behind its Orb scanning device to help people understand how it worked and prove that it wasn’t secretly collecting more data than it claimed. The company also introduced “Personal Custody” to allow users to control their data by storing it themselves or deleting it from the database.

Moreover, Worldcoin brought in independent experts to perform third-party audits to ascertain that the company’s technology and policies aligned with the regulations the way Worldcoin claimed.

But despite these efforts, legal and tech experts still have mixed opinions. Some say it was the first step toward making things right, but others claim that these endeavors are not enough and that the company still has big problems to solve.

Therefore, even after all the changes Worldcoin has made, the gap between what the company claims and what regulators believe remains wide. It seems that regulators want more from the company, which means the company still has more work to do and more steps to take before the bans are lifted.