Worldcoin, a start-up that intends to use iris scanning technology to build a secure worldwide cryptocurrency and global identification system, is close to receiving $100 million in backing from OpenAI’s Sam Altman.
- By developing a global identification system, Worldcoin hopes to provide free access to its own international money.
- The whole supply of the company’s tokens was valued at $3 billion at an early-year $100 million token sale.
New Crypto Venture
Sam Altman, the co-founder of OpenAI, is close to getting $100 million in funding for his new cryptocurrency Worldcoin. The business, which Altman and Alex Blania formed in 2019, wants to develop an iris-scanning global identity system allowing users to access Worldcoin, the company’s cryptocurrency. Worldcoin is in advanced discussions to raise more funding from current and potential investors. The business had raised $100 million in a token sale last year, valued at $3 billion for the whole supply of its tokens. The overall cryptocurrency industry, however, has been having trouble lately, with several token prices decreasing and several businesses failing.
Worldcoin’s Plans
Identifying the difference between humans and robots and offering a type of universal basic income that could help offset employment losses brought on by AI are the two issues that Worldcoin seeks to address. The company’s method uses iris biometrics to identify a specific person, after which a digital World ID is made that can be used in everyday apps anonymously without disclosing the user’s identity. Worldcoin has come under fire for using biometric scanning, which critics claim puts users’ privacy at risk. The business has rectified these issues and assured users that the orb won’t hurt their eyes or store iris scans.
Funding for Worldcoin
Three people with knowledge of the transaction said that Worldcoin is in advanced talks to acquire further money as it gets ready to launch in the coming weeks. Former investors in the business include Khosla Ventures, Andreessen Horowitz’s cryptocurrency fund, FTX founder Sam Bankman-Fried, and internet entrepreneur Reid Hoffman. The group consists of both new and existing investors.
According to Worldcoin executives, the company plans to introduce its blockchain protocol in the upcoming six weeks and start logging transactions. The funding takes place during a challenging period for the cryptocurrency sector, which has seen token prices fall and several crypto firms fail. Despite this, the $100 million funding for Worldcoin is a rare sign of hope for the industry.
Concerns about Biometric Scanning
The use of biometric scanning is debatable due to worries regarding security, privacy, and permission. According to critics, biometric information creates severe ethical issues because it may be used to follow and monitor people and might also be compromised or leaked. Other problems include who gets access to biometric data and how it might be utilized.
To alleviate these worries, Worldcoin has assured customers that the device won’t damage their eyes and won’t store iris scans. To protect users’ privacy, the business must, however, ensure that it has robust data security mechanisms in place, such as encryption, access limits, and secure storage.
Conclusion
Worldcoin’s ambitious and potentially game-changing proposal to develop a universal identification system and free global currency creatively uses iris-scanning technology. However, the corporation would need to take significant consideration into account while using biometric data as it presents serious ethical and privacy issues. Although the cryptocurrency sector, which has had a challenging year, is encouraged by Worldcoin’s $100 million fundraising effort, it still needs to be determined whether the company’s lofty objectives can be realized.
