Will Worldcoin really be the only currency on planet earth? Will Dogecoin return? Read on to find out!
What is cryptocurrency?
Let’s get the basics out of the way. Cryptocurrency is digital money that you can use to buy things on the internet. It’s like the coins and notes you use to buy things in shops, but without the physical coins or notes
However, cryptocurrencies are not controlled by any government or bank, and is therefore known as a ‘decentralised’ currency as it spans worldwide.
No, cryptocurrencies are therefore not stable in price. In fact, they are far more volatile than centralised currencies, fluctuating wildly as they are not backed by a centralised government. For some, this is what makes crypto a good investment!
The one we’ve all heard of!
We’ve all heard of Bitcoin by now – the currency that took the world by storm during the Covid19 Pandemic in 2019 and 2020. But what most people don’t know is that Bitcoin was actually the FIRST cryptocurrency.
Bitcoin launched in January of 2009 after being created by a computer programmer who goes by the name ‘Satoshi Nakamoto’. Nakamoto designed Bitcoin to be the currency of the digital age. Its sole use was to buy goods and services without the need for intermediaries like banks or governments.
Nowadays, Bitcoin, like most cryptocurrencies, is regarded more as a store of value, similar purchasing items like gold or land. But Worldcoin aims to change this
Worldcoin (or WLD) isn’t just another cryptocurrency. In 2021, the company stated that its token is intended to be a larger effort to drive a more unified global economy driven by the internet economy. Strangely, this omits the large economic powerhouse that is the USA.
In October 2021, the project raised an initial £20 million. Within six months, an additional £80 million was raised pushing the token’s value up to £2.3 billion. Further funding of £90 million was announced in May 2023, to be used for investment into bot detection, research and development, and expanding the Worldcoin project and application.
Speaking of bot detection, Worldcoin has some tricks up its virtual sleeve that could very well change the game…
Worldcoin uses an ‘Iris Biometric Scanner’, known as The ORB, to verify that a user is a human-being and not a robot. No, this is not the same as Apple’s ‘Face-ID’ phone unlock system.
Worldcoin uses orbs to scan people’s eyes in exchange for a digital ID and possibly some cryptocurrency, depending on what country they live in. Once Worldcoin has received a unique iris scan, the project issues a digital identity called a World ID. The ID is not a user’s biometric data itself, but an identifier created using a cryptography method called zero-knowledge proofs.
However, there are concerns about the Worldcoin’s collection of biometric data and how the project will keep and protect that data going forward. In fact, blockchain security platform CertiK has already said it found a security vulnerability in the selection process for operators of the Worldcoin eye-scanning orb.
What does all this mean for you?
The potential benefits of Worldcoin are significant. The project could help to reduce poverty and financial exclusion by making it easier for people to access financial services. It could also help to promote economic growth by making it easier for people to trade and invest.
BUT, as you’ve read in the section above, there are some concerns about the Worldcoin’s collection of biometric data and how the project will keep and protect that data going forward.
With Worldcoin in its current state, there is nothing to worry about for the average consumer. However, the currency is quickly growing, so watch this space!