Worldcoin turns one: Looking back at a year of controversy and growth

Shiraz Jagati10 hours agoWorldcoin turns one: Looking back at a year of controversy and growthOne year in, Worldcoin’s vision of a universal digital identity system shows promise with millions of users.1248 Total views2 Total sharesListen to article 0:00OverviewOwn this piece of crypto historyCollect this article as NFTJoin us on social networksOne year ago today, on July 24, 2023, Worldcoin burst onto the global stage with a vision that seemed to have been lifted directly from the pages of a science fiction novel. 

Co-founded by OpenAI CEO Sam Altman, the project aims to create a universal digital identity and financial network by scanning people’s irises using futuristic “orb” style devices in addition to launching Worldcoin (WLD) (the platform’s native digital token) and a “globally recognized” digital ID.

The project’s core premise — to create a global identity system using an individual’s biometric data — was as innovative as it was divisive. 

Worldcoin claimed to offer a variety of use cases, from distinguishing humans from artificial intelligence bots to providing a platform for universal basic income (UBI) distribution.Source: Worldcoin

As expected, the initial reception to Worldcoin was a study in contrasts. On the one hand, the project’s ambitious goals and high-profile backing attracted significant interest, drawing more than 2.4 million subscribers within just four months of its launch.

However, this enthusiasm was met with an equal measure of skepticism and concern from privacy advocates and regulatory bodies. The collection of biometric data on such a large scale raised immediate red flags about its potential misuse and other associated data security risks.The numbers speak for themselves

Despite the concerns mentioned above, Worldcoin has grown apace. In less than a year since its debut, the World App — Worldcoin’s native wallet — has amassed 10 million users.

The app’s reach extends across more than 160 countries, with two million daily active users and over 70 million transactions processed — positioning World App among the top self-custodial wallets in the world today.

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Additionally, the platform seems to have maintained engagement levels in recent months by processing an average of 7.1 transactions per second. This is most likely because the World App helps simplify everyday crypto interactions, focusing on the essential functions of Worldcoin and Ethereum in particular. 

Users can authenticate their identity with World ID, execute global transactions, engage in crypto token swaps, and access Worldcoin Grants in many areas.A Worldcoin orb at an event in London. Source: Cointelegraph

While the exact numbers may be difficult to verify, reports suggest that by the third quarter of 2023, Worldcoin deployed around 119 orbs across 18 countries. In July 2024, the project rolled out an initiative to establish 1,500 Orbs globally.Worldcoin continues to face regulatory headwinds worldwide

As Worldcoin celebrates its growth, the project has found itself navigating an increasingly complex regulatory landscape in recent months, raising eyebrows and concerns among privacy watchdogs and regulators worldwide.

Hong Kong’s recent directive for Worldcoin to cease operations highlights the severity of these concerns. The Office of the Privacy Commissioner for Personal Data in Hong Kong served an enforcement notice to the Worldcoin Foundation, citing risks to privacy and personal data. 

The regulator specifically called out the scanning and collection of iris and face images as “unnecessary and excessive.” However, this was not an isolated incident since Worldcoin has continued to face similar regulatory challenges worldwide.

For instance, Spain was the first country to ban Worldcoin’s biometric data collection practices earlier in March. Portugal and Kenya followed suit and also halted the project’s operations. 

Similarly, India and South Korea have launched investigations into Worldcoin’s data practices, while Germany has begun an inquiry into the company’s compliance with the European Union’s General Data Protection Regulation.The future of decentralized identity solutions

Despite the prevailing regulatory issues, the potential for decentralized identity (DiD) solutions remains quite large. In fact, the global decentralized identity market — estimated to be worth $647.80 million in 2022 — is projected to grow at a staggering CAGR of 90.3% between 2023 and 2030.

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Therefore, as Worldcoin moves into its second year, it faces the dual challenge of continuing growth while addressing the valid concerns raised by regulators and privacy advocates.

The coming months will be crucial for the project. Its ability to wade through regulatory hurdles, enhance transparency and maintain user trust will determine whether it can come anywhere close to fulfilling its vision of creating a truly global, decentralized identity system.

Moreover, as people across the globe continue to grapple with the implications of AI and the need for robust DiDs, Worldcoin’s evolution will undoubtedly be a major topic of discussion for technologists, policymakers and privacy advocates in the coming months.# Privacy# Identity# Adoption# AI# Identification# WorldcoinAdd reaction