Article | a16z

Written by | Christian Catalini

Translated by | Portal Labs

Just a few weeks ago, World Company founder Alex Blania revealed the latest strategic card in front of a full house of crypto bigwigs. While seizing the opportunity presented by policy to enter the US market is eye-catching, the real stroke of genius is their lightning breakthrough into mainstream consumption scenarios. This marks that cryptocurrencies are shedding the label of 'geek club' and truly entering the battleground of everyday business.

World made a bold move: persuading Americans to use iris scans in exchange for a 'real person certification badge' is indeed difficult, even with promises of privacy protection (and the timing may be too early). However, they have quietly accomplished a significant feat: over the past three years, they have laid down three layers of insurance for this crazy plan.

First create real product value, then add a sweetener with tokens.

World also walked an old path in its early days: attracting new users through token incentives. However, this approach, praised as the 'successful paradigm of Bitcoin' and later copied by numerous projects, actually reversed causality. World encountered pitfalls in early testing — the incentives were too aggressive; users did come, but privacy circles and some developers began to criticize: 'This is not growth; this is using profits as a cloak of shame.'

But let’s not forget that Bitcoin has come this far because it provided an unprecedented asset logic from the very beginning: decentralization, fixed supply, and independence from central bank control. Yes, miner rewards and the myth of explosive growth attracted early speculators, and later also drew in institutions and nations. But the builders who truly remained were not captivated by the 'get-rich-quick expectations,' but rather by its radical potential as a new asset and payment system.

Most of those projects that later copied the playbook are now lining up in the 'graveyard' of the crypto world, waiting for burial.

The crypto world cannot escape the basic laws of economics. Like any startup project, first create a real usable product, then use tokens to solve cold start or ecological incentive issues. Otherwise, no matter how many economic models there are, they are merely theoretical.

Blania presented three real pain points to substantiate this: socializing, gaming, and credit fields, where bots are rampant and distinguishing between humans and machines is difficult. Thus, he put World’s 'real person proof' system on the table, clearly explaining why it is worth scanning your iris to exchange for a 'I am a real person' ticket.

In an era where AI is accelerating the invasion of everything, we will eventually face the certification demand of 'are you a human?', and World is just a step ahead.

Learn to deal with 'infrastructure inversion.'

In the early days of the crypto craze, we all rushed in. When I designed the Bitcoin experiment at MIT, I truly believed that within two or three years, it could completely disrupt the payment and financial systems. Ten years later, we have just begun.

If we really want to push crypto products to the mainstream, we must align with the experiences that traditional users and merchants are already accustomed to. This means building a bridge between the old systems and new technologies. However, this bridge often requires compromises that may seem heretical to 'crypto fundamentalists.'

But this stage is unavoidable. You must traverse that awkward period of 'new and old coexisting' — Andreas Antonopoulos calls it 'infrastructure inversion.' Imagine: dial-up internet occupying the phone line, the first broken car clattering over gravel roads; it sounds uncomfortable.

This 'technological fence-sitting period' makes it difficult for new systems to scale up from the start, allowing only for patching in certain niche scenarios, without being able to disrupt the entire system. The AI field faces similar dilemmas.

World initially tried to skip this phase, launching tokens as the main character directly. But the new version has completely turned the tide: embracing 'infrastructure inversion,' returning to product practicality, and moving more steadily and deeply.

Don't fantasize about creating a wallet that works globally without connecting to the old system. Deposits and withdrawals must be as smooth as PayPal's online payments back in the day; otherwise, how can we talk about mainstreaming?

This is why the new version of the World App integrated Stripe and Visa cards as soon as it launched. Trust, familiarity, and practicality — all achieved in one day. It is also because it is willing to be 'backward compatible' that traditional finance has the chance to watch and test the waters instead of being directly eliminated.

This logic is quietly pushing crypto towards cross-border payments behind the scenes. In the future, maybe technology can gain a foothold, but before that, it needs to first 'borrow' well on the old tracks, streamline processes, and minimize friction.

Don’t forget that many crypto mechanisms (including economic models) only have magic when scaled. But to achieve scale, you first need people to get on board. Without even a ramp to get on, no matter how perfect the model is, it is still just idling.

The key to whether crypto can succeed lies in its implementation.

Like all new technologies, crypto is not destined to win. Don't believe the myths from those self-indulgent fans. To be more specific, 'decentralization,' the soul pillar of crypto and its most crucial contribution to market disruption, has never been a sure thing.

Stablecoins are a good example.

To integrate with traditional financial systems, the crypto world has spawned such tools, which are indeed useful. But problems also arise: the specter of centralized management and closed networks has returned.

I tend to believe that open architecture will ultimately win, but let's not forget that those 'vested interests' have no reason to let you pass easily.

Blania and his team have made a big bet: betting that users will care about decentralized control of their data, and that businesses will build better user experiences on this system. Once decentralized identity disrupts the existing landscape, how hard will it be to navigate — centralized players start with inherent advantages in UX and functionality.

So if World wants to overtake on the curve, the first step is to persuade users to willingly hand over their biometric data. The US market has already started, and soon we will see if they can find a balance between 'privacy vs convenience.'

Of course, a gentler 'onboarding method' might be smarter: for example, first issuing a familiar 'certification badge' that unlocks additional features in your commonly used apps. Don't rush to have people focus on the sphere and scan their irises right away. The problem is that this approach makes identity verification less reliable and more susceptible to exploitation.

Blania's judgment may not be wrong. In this endless cat-and-mouse game with AI, only military-grade biometric recognition can truly provide an 'unbreakable' proof of being human. But that doesn't mean he can't be a bit gentler and not push users hard against the sphere on the first day.

Those looking for airdrops will certainly line up, but this wave of sweet stimulus will last at most a few days; once the subsidies stop, the enthusiasm will dissipate. Real sustainable growth only exists in the realization of everyday value, and that is their true opportunity.

If the World App can break the circle with the payment experience and have smooth global deposit and withdrawal channels, then it may truly strike a chord.

Conclusion

Looking at it now, they have bet the entire rhythm. Next, we will only watch one thing:

Can the crypto world really break into the mainstream market?

Regardless of whether World’s experiment ultimately succeeds, I hope to see more crypto projects willing to shift the spotlight away from 'token economics' and 'price fluctuations' towards actually doing some daily usable products.

Because while this shift may not be sexy or exciting, it is the crucial step that the entire industry must take to enter the mainstream market.