{"id":422755,"date":"2023-07-25T15:26:11","date_gmt":"2023-07-25T15:26:11","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=422755"},"modified":"2023-07-25T15:26:11","modified_gmt":"2023-07-25T15:26:11","slug":"worldcoin-gets-reality-check-after-buterin-raises-doubts-uk-regulator-examines-sam-altmans-crypto-project","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/worldcoin-gets-reality-check-after-buterin-raises-doubts-uk-regulator-examines-sam-altmans-crypto-project","title":{"rendered":"Worldcoin Gets Reality Check After Buterin Raises Doubts, UK Regulator Examines Sam Altman’s Crypto Project"},"content":{"rendered":"

Sam Altman’s Worldcoin got a reality check after Ethereum’s Vitalik Buterin raised concerns about its design and a UK regulator said it would examine<\/a> the project.<\/p>\n

WLD, its token, dropped as much as 52% from its high of $3.58 yesterday but has since recovered some ground. It traded at $2.28 at 10:30 EST time, up a fraction in the past 24 hours.<\/p>\n

Buterin expressed doubts over Worldcoin, which aims to assign people a kind of world ID, in a blogpost yesterday. He said it may face issues over factors that include security and privacy.<\/p>\n

”I definitely do not envy the people attempting the task, and it will likely take years to find a formula that works,” he said<\/span><\/p>\n

Separately, the UK Information Commissioner’s Office (ICO), Britain’s data watchdog, is also looking into the project by OpenAI CEO Sam Altman, Coin Desk reported<\/a>.<\/p>\n

“We note the launch of WorldCoin in the U.K. and will be making further enquiries,” it told Coin Desk, adding that  organisations “need to have a clear lawful basis to process personal data. Where they are relying on consent, this needs to be freely given and capable of being withdrawn without detriment.”<\/p>\n

Raining On Worldcoin’s Parade<\/h2>\n

Worldcoin is a project<\/a> geared towards creating a globally-inclusive identity and financial network. To facilitate global identification, the project assigns people WorldID which is created when a user gets their iris scanned on the Worldcoin Orb.<\/p>\n

The project is built on proof of personhood which is simply when a person establishes that they are both human and unique which proves that they are a real person and different from another real person, without having to reveal their real-world identity.<\/p>\n

Worldcoin also debuted the WLD token<\/a> which was created for the purpose of establishing a financial network and also for the governance of the protocol. Seeing as the token is still newly launched, the actual utility is yet to be determined.<\/p>\n

Unfortunately, these concepts and their practicality failed to convince Buterin who wrote a long blog post<\/a> discussing his concerns with the proof of personhood projects. First, he questioned Worldcoin’s ability to maintain the privacy of a real person’s true identity.<\/p>\n

\n

Vitalik Buterin described \"four main risks\" associated with Worldcoin<\/p>\n

Vitalik Buterin pointed out four potential problems with the identity verification system in his blog<\/p>\n

He highlighted the main risks:
– confidentiality;
– accessibility;
– centralization;
– safety.#Worldcoin<\/a> pic.twitter.com\/2nY7ZRB84N<\/a><\/p>\n

— 100 X (@Cryptofranknews) July 24, 2023<\/a><\/p><\/blockquote>\n