OpenAI co-founder Sam Altman launched Worldcoin in 2023 to give people a digital identity for securely and anonymously verifying themselves online.
The idea behind the project required people to scan their irises and, in exchange for their personal data, the company would reward them with a small amount of cryptocurrency, which it believed would inspire more people to sign up.
Altman expressed his intention for Worldcoin as a "proof of identity" because AI could mimic human behavior and talk like them, making it harder to know who or what is real online. He also wanted to close the gap between the rich and the poor by giving everyone equal access to digital services without paperwork or passwords.
At first, Worldcoin was quite a buzz, as social media posts showed people waiting in long lines to scan their irises, especially in countries in Africa, Asia, and Latin America. Most volunteers were more than happy to be part of the global tech movement, while others did it for the free cryptocurrency that the company gave to everyone who scanned their irises.
However, Altman's vision of a connected and equal world began to crumble as people and governments expressed concerns about privacy, data security, fairness, and project consent.
Privacy groups criticize Worldcoin for biometric risks and exploitation
Technology experts and privacy groups warned that the biometric data from these eye scans is extremely sensitive because the information is directly linked 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, stating that the company rushed to collect information from third-world countries because people were unaware of how Worldcoin would use, protect, or delete their data.
Moreover, individuals expressed concerns about consent because Worldcoin sometimes targeted individuals with limited Internet access or education, as they are less likely to understand the risks and make a more informed decision. Some users even stated that they only signed up 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 users' data was stored, 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 growing concerns, several governments launched investigations into Worldcoin's practices. Nations like Spain, Portugal, and Kenya are at the forefront demanding that Worldcoin cease operations in their regions. These actions demonstrate that many governments worldwide are moving too quickly, breaking several legislative laws aimed at protecting users' interests.
Worldcoin tries to regain trust after the bans
Due to government opposition, Worldcoin quickly tried to save its image and respond to growing criticism by sharing the code behind its Orb scanning device to help people understand how it worked and demonstrate that it was not collecting more data than it claimed.
Additionally, the company introduced "Personal Custody" to allow users to control their data by storing it themselves or deleting it from the database. Furthermore, Worldcoin brought in independent experts to conduct third-party audits and determine that the company's technology and policies aligned with regulations in the manner that Worldcoin claimed.
Despite these efforts, legal and technology experts still have mixed opinions because some say it was the first step towards correction, while others argue that these efforts were insufficient and the company still has major issues to resolve.
Therefore, even after all the changes Worldcoin has made, the gap between what the company claims and what regulators believe remains wide because regulators say the company still needs to explain, correct, and prove more before lifting the bans.
The Indonesian Ministry of Communication and Digital (Komdigi) plans to summon Worldcoin and WorldID developers next week. This action follows the temporary suspension of platforms that collect users' iris data for alleged regulatory violations.
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