Virtual currency is a digital asset based on blockchain technology. It is not controlled by a central authority, but maintained and verified by a decentralized network. The market size of virtual currency has reached trillions of dollars, with Bitcoin (BTC) and Ethereum (ETH) being the two largest representatives.
In May 2023, OpenAI CEO Sam Altman announced a project that has nothing to do with artificial intelligence, but is closely related to virtual currency: Worldcoin. Worldcoin is an Ethereum-based cryptocurrency that aims to distribute a certain number of tokens to everyone on the planet for free, as long as they are willing to undergo an iris scan through a device called Orb to prove that they are a real and unique individual. Orb is a metal ball similar to the size of a basketball that can convert iris data into a short digital code without leaking the user's privacy or identity.
Worldcoin's vision is to build a global identity and financial network that allows everyone to participate equally in the digital economy, regardless of their country or background. Worldcoin believes that by fairly distributing cryptocurrency, more people can be encouraged to use blockchain technology, thereby promoting innovation and social progress.
So, what impact will OpenAI's release of Worldcoin have on the virtual currency market?
On the one hand, Worldcoin may bring some positive impact to the cryptocurrency market because it has the following advantages:
- It has a noble mission to provide economic opportunities and practical benefits to all mankind. This may attract more people to pay attention to and participate in the field of virtual currency, thereby expanding the market size and user base.
- It has a strong team and resources, including OpenAI’s technical strength and reputation, and $1 billion in funding from multiple well-known investors and institutions. This may enhance Worldcoin’s credibility and influence, and ensure the smooth advancement and operation of its projects.
- It has a large potential user base, with over 100,000 irises reportedly scanned in 12 countries, and plans to reach 1 billion people by 2023. This could make Worldcoin one of the most widely distributed and used cryptocurrencies, and enhance its liquidity and value.
On the other hand, Worldcoin may also bring some negative impacts to the virtual currency market because it has the following challenges:
- It needs to address users' concerns about the security and privacy of iris scanning, as well as questions about the reliability and usability of the Orb device. If users do not trust or are dissatisfied with Worldcoin's mechanism, they may refuse or give up using Worldcoin, affecting its distribution efficiency and fairness.
- It needs to deal with competition and resistance from other cryptocurrency projects and communities, as it may threaten their interests and status. If other cryptocurrency projects and communities believe that Worldcoin is an unfair or unreasonable distribution method, or a potential means of monopoly or control, then they may take various measures to hinder or oppose the development and promotion of Worldcoin.
- It needs to comply with the laws and regulations of different countries and regions regarding cryptocurrency and identity authentication, as well as deal with possible political and social intervention. If different countries and regions have different views or requirements on the legality and compliance of Worldcoin, or have different attitudes or concerns about the goals and impact of Worldcoin, then they may prohibit or restrict the use and dissemination of Worldcoin, and bring legal risks and social pressure to it.
In summary, Lao Jiu believes that OpenAI's release of Worldcoin is a forward-looking and subversive project. It may open a new chapter in the virtual currency market, but it may also encounter many difficulties and obstacles. At the same time, we should also maintain an open and critical attitude, fully understand and evaluate the mechanism and goals of Worldcoin, and reasonably predict and supervise its impact on individuals and society. Only in this way can we truly enjoy the opportunities and benefits brought by virtual currency, rather than being led by it.
