OpenAI’s CEO Discusses Worldcoin’s Eye-Scanning Crypto Project

The international launch of Worldcoin has caught the interest of privacy regulators globally, leading to the indefinite shutdown of the service by the Kenyan government.

The international ID startup, which is backed by the big names of Silicon Valley, now has to defend itself in investigations about whether the biometric data collected by the company is really safe.

Here’s what you need to know about Worldcoin and the concerns it raises:

WHAT IS WORLDCOIN?

Worldcoin is the creation of Sam Altman, best known as the CEO of OpenAI, a company that has gained widespread recognition for its AI chatbot ChatGPT.

The goal of Worldcoin and its supporting company, Tools for Humanity, is to give people a form of identity that can never be stolen or copied. Worldcoin creates a “World ID” by scanning someone’s eyeballs through “orbs” – a device that captures an image of their irises, the colored parts of the eyes.

One possible use for such a token would be online services, where people often have to remember multiple passwords and usernames for the different websites they’re registered with.

However, the data security of these sites may be lacking, and there have been numerous data security breaches where usernames and passwords have been stolen. Instead of using old technology like passwords, a person could just register using their world ID.

WHAT DOES IT HAVE TO DO WITH CRYPTO?

Worldcoin is first and foremost an identification project, but it uses cryptocurrency to get people to sign up. The Worldcoin token is worth around $1.90, but its value is largely based on speculation rather than its current utility as a currency.

Worldcoin was officially launched in July, and as part of the promotion, early adopters were given a number of cryptocurrencies worth between $50 and $60 depending on the jurisdiction. Most of the countries where Worldcoin was launched do not widely use or accept crypto.

Also, $50 is a lot of money in the developing countries where people are asked to register, including Kenya, where the average monthly income is about $170.

WHY IS WORLDCOIN WORTH YOUR ATTENTION?

Thousands of Kenyans lined up in Nairobi last week at a registration center where Worldcoin will scan their irises in exchange for 25 coins worth about $50. The mostly youthful crowd included a special line for mothers waiting with their children on their backs.

Some of those in line told local media they had traveled for miles after friends said “free money” was being handed out. They admitted that they didn’t know why they had to scan their irises and where this information goes, but they just wanted money.

University graduates were among those who waited for hours, citing Kenya’s high unemployment rate, where many are angered by the rising cost of living.

The Kenyan government has since suspended new registrations to Worldcoin as it investigates whether people’s data is properly protected.

Home Affairs Minister Kithure Kindiki said last week that “investigations into the security and protection of the data being collected and how the harvesters intend to use the data” have been launched.

WHAT ARE PRIVACY PROTECTIONS?

Worldcoin’s balls collect biometric data by taking photos of a person’s iris. Although Worldcoin claims that the data is used to create a unique and secure form of identification, privacy experts are concerned that the company may use the data in other ways, such as for personalized marketing.

This has led some countries like France, Germany and now Kenya to look into Worldcoin’s operations.

The Bavarian State Data Protection Authority says it has started a comprehensive investigation into the data security practices of Worldcoin and Tools for Humanity.

The agency will find out whether the rights of those who disclosed their personal data have been respected. They should have been given adequate information about how their data will be used and given the opportunity to object to the data, delete the data or withdraw their consent, the agency’s director, Michael Will, said.

The data must also be protected from unauthorized use – for example to prevent identity theft, he said in his statement.

France’s data protection authority said the legality of Worldcoin’s data collection and how it stores data “seems questionable.” It launched an investigation that found Germany’s data protection authority competent under Europe’s strict data protection rules.

The UK Information Commissioner’s Office says it is investigating Worldcoin.

Privacy experts worry that even Worldcoin could eventually be vulnerable to criminal infiltrations, similar to the data breaches of other large companies. Privacy experts have said biometrics are already being sold in China and could spread to other countries or jurisdictions.

“When biometric data is leaked, especially in poor countries where Worldcoin has operated, people’s lives are at risk,” said Pete Howson, professor of international development at Northumbria University in Newcastle upon Tyne, England.

In a blog post last week, Worldcoin acknowledged privacy concerns about its new service, but said: “Everything is optional and no personal information is shared by default, so each holder can decide what (if any) personal information to share with third parties when you use World ID.

Worldcoin has previously said the company uses industry best practices to secure user data, citing an audit conducted by two security firms in late July.