Is the Worldcoin Crypto Safe or Dangerous?

People around the world are lining up to Have their eyeballs scanned by a Metallic orb in exchange they get free Cryptocurrency I know it sounds crazy But what I'm describing is actually the Most controversial crypto project at the Moment worldcoin is a cryptocurrency That aims at creating a global digital ID by collecting people's biometric data The project was co-founded by Sam Altman The CEO of openai and creator of chat Gbt many c word coined as a serious Danger to privacy that could lead the Humanity into a technological dystopia Since its launch the project has been Under Fire from regulators and privacy Advocates around the world if this video Will tell you everything you need to Know about the word coin controversy and Determine how dangerous it really is I'm Giovanni and this is a coin Telegraph Report [Music] What kind offers a verified identity Solution called proof of personal good a System designed to distinguish humans From AI while preserving privacy but why Would you need an ID to prove that You're a human you may be asking it's Simple with the rise of artificial Intelligence it is becoming increasingly Difficult to distinguish robots from Humans in online interactions proof of Personhood has multiple use cases we

Asked Jake Brockman award coins backer And the CEO of coinfun to give us more Details about them this Primitive enables a wide Variety of applications for World point It enables highly Democratic one-person One-vote voting systems in blockchain Which basically have not been possible Before in it enables why token Distributions and fair air drops It could be applied toward bot Protection on Twitter but word coin is Not the first project that aims at Solving the proof of personhood problem And creating a verified digital ID an Existing solution is proof of humanity This protocol requires participants to Perform human specific tasks such as Video selfies or voice verification to Demonstrate they are genuine individuals Rather than Bots the problem with this System is that as AI technology evolves Robots may become sophisticated enough To perform those tasks circles and other Blockchain network adopts a different Approach its users need to be vouched For by existing members his goal is Creating a decentralized web of trust in This system however power risks to be Concentrated among early Network users Which creates a centralization problem So how is worldcoin different from these Solutions word coin tries to avoid these Problems by using a piece of Hardware

Called the orb to scan young people's Irises and collect their unique Biometric data then it rewards them with A fixed amount of Wldcoin's native token whilst Participants have their eyes scanned They get a word ID a sort of digital Passport that proves they are actually a Human being and not a robot at the Moment worldwide orbs can be found in 35 Cities around the world so what's wrong With the world clients approach the main Criticism around the worldcoin has to do With data privacy it is not entirely Clear how the organization behind word Coin is handling people's biometric data A single entity collecting millions of People's data is an obvious reason for Concerns to many it reminds of Libra Facebook aborted cryptocurrency project Like Libra wordcoin is being scrutinized By Regulators around the world a privacy Watchdog in France recently questioned The legality of world coins methods for Collecting and storing private data the Government of Kenya where the project Has been tested recently suspended this Operation in the country citing data Privacy concerns to find out more about These privacy issues we talked to Aileen War an investigative reporter who Extensively covered World coins Operation on the ground there is just a Huge gap between what world coin was

Saying publicly which focused on Protecting privacy in a very specific Way which is just the technology itself And then what users actually experienced On the ground and so that meant Deceptive marketing practices collecting Far more data than World coin Acknowledged and maybe even new Um failing to obtain meaningful informed Consent but wordcoin Advocates point out That the Privacy issue is overblown and The company is not actually collecting People's data by using cryptographic Technology users biometric information Is transformed into Strings of anonymous Code which will eventually be stored on A public blockchain bioelectric data Never leaves the device Collected it is used to create an iris Code which is a hash essentially of your IRS information That hash Goes into a system at no point is a User's World ID ever revealed to a third Party still the Privacy problem has to Do not so much with the protocol but With the hardware used to collect the Data the orbs those can create a Centralization problem as vitalik Butarin the founder of ethereum pointed Out in a recent blog post it is hard to Verify whether the orbs contain a secret Back door basically users still need to Trust the orb manufacturer that is an

Issue that is for now without the clear Solution Hardware is probably kind of The hardest point of a system to Decentralize you'll probably first have To open source all of the hardware then You need to find manufacturers that are Willing and able to manufacture kind of Alternative devices that still work with The protocol there needs to be some Governance and like auditory processes That that determine you know that these Devices are safe finally another Controversy surrounding worldcoin has to Do with the ethics of the methods used To onboard its first 2 million users in Order to incentivize people to sign up Worldcoide has been giving out wld its Native token each user can claim one wlg Per week which is about two dollars wsd Has no real use case at the moment which Makes it a highly speculative investment In the future success of wordcoin the Problem is that word coin has been Focusing its air drops on the global South mainly Africa and Asia companies That are That require a lot of data to make their Products and their algorithms work well They often test in the global cells Where it is easier to get the data where Regulations may not be as strong where It is cheaper where you know 15 or 25 Dollars or worth of world coin will be a Lot more of an incentive for someone to

Sign up than in the United States or in Europe now these allegations are serious Still as vitalik butarily pointed out These problems can be solved since they Have to do with organizations practice More than with the underlying technology Itself overall it is still early to say Whether World coin will be successful as We saw there are plenty of problems to Address both ethical and Technical the Project will have to win the trust of Privacy activists and Regulators around The world a certain amount of skepticism Is definitely Justified the stakes are Very high if the company manages to Achieve its goal of collecting millions Of people's biometric data that could Pose a huge security risk if the data is Not that properly at the same time the Concept of proof of personhood a way of Distinguishing humans from robots is a Valuable idea in the padding era of AI a Truly decentralized Global ID which Allows user to interact online in a Private and secure way is a goal worth Pursuing whether word coin will be able To implement it successfully in practice Remains to be seen that's all for Today's video I'm Giovanni Rost thanks For watching and see you next time Foreign [Music]