News - Worldcoin launches its own blockchain

By Mike Hesp

Worldcoin launches its own blockchain

Worldcoin (WLD)

The cryptoproject Worldcoin announces its own blockchain. The move to the World Chain will take place in the summer. Background.

Almost no other crypto project has benefited from the hype surrounding AI as much as Worldcoin, which is sponsored by OpenAI boss Sam Altman. It offered a technical answer to the challenges posed by advances in artificial intelligence: A system that distinguishes between human and machine. A World ID that serves as both an identity card and a wallet - for the cryptocurrency Worldcoin. So far, the project has leaned on the Ethereum blockchain, specifically the layer 2 blockchain Optimism. But, as the German BTC-ECHO learned in advance, it is switching to the upcoming World Chain this summer. This is also committed to the principle: people first.

Humans against bots

"World Chain is a new blockchain developed for people," Worldcoin announces its new blockchain. You might ask: for whom else? But much of the crypto space now runs automatically, via bots. This is where leverage should be applied: "Verified people get priority over bots and get a quota of gas for occasional transactions," Worldcoin says.

Bots are actually becoming more and more of a problem. The capabilities of a blockchain are limited. If they are fully utilized, costs rise. Worldcoin estimates the share of bots in blockchain transactions to be "at most 80 percent." This includes a large number of "unproductive bots," such as for "airdrop farming." In the future, transactions made by "verified humans will be prioritized for faster confirmation times" via World ID.

Change in summer

Worldcoin currently runs on the Optimism Network, a scalable solution for the Ethereum network. But space is getting tight: "Transactions by Worldcoin users currently account for about 44 percent of OP Mainnet activity, making it the largest application on the network," Worldcoin said. At peak times, the share "often exceeds 80 percent." Given this growth rate, it is time to "move to a dedicated network."

The project did not release too much technical information in advance. "The network will be deeply integrated into the Worldcoin protocol," it said, "to accelerate growth and leverage World ID's Proof of Personhood." It is also "secured by Ethereum as L2 and designed for scalability alongside the superchain ecosystem." Worldcoin stressed that the blockchain will remain public and open-source and "will eventually be independently managed by the community." The launch date is "expected this summer."

Blockchain to meet demand

The move to a proprietary blockchain is therefore expected primarily to stimulate growth. By expanding its capabilities, users would benefit from faster and cheaper transactions. World Chain will "take the lead in scaling and decentralizing the layer 2 paradigm on Ethereum alongside the superchain ecosystem," according to Worldcoin.

Its stated goal: "apps designed to be useful in everyday life." World Chain is designed as an "ecosystem of decentralized financial and identity apps" that are "focused on benefits for everyday life." This includes transactions with Worldcoin and stablecoins, as well as functions such as borrowing and bartering.

Ten million registrations

Thanks to the media hype surrounding ChatGPT and its mentor Sam Altman, Worldcoin got off to a fast start. After less than a year on the market, more than 10 million people have registered for a World ID, according to Worldcoin. It acts as a kind of digital identity card that is also used as a wallet. There have now been 75 million transactions. Five million users have "verified the World ID with a sphere."

However, the global collection of biometric data meant that the project was criticized from the start. Concerns about a lack of data protection led to the project coming under scrutiny in some countries. In France, Spain, Argentina, Kenya and Hong Kong, OpenAI CEO Sam Altman's crypto project is being scrutinized for violating data protection laws. In Germany, the Bavarian State Office for Data Protection Supervision is conducting a research.

Worldcoin responds to criticism

These were problematic developments for the external perception of the project. The pressure was mounting. This is probably why Worldcoin recently "introduced an option to remove the World ID," as Tim Wybitul, Partner at Latham & Watkins, which represents Worldcoin in negotiations with data protection authorities, explains to BTC-ECHO. According to Wybitul, this is "an important step toward the best possible data protection and very comprehensive user control."

This was done in consultation with data protection authorities such as the Bavarian State Office for Data Protection Supervision, Wybitul explained. "It reflects Worldcoin's strong commitment to improving consumer choice and control over their data and ensuring compliance with the principles of the EU General Data Protection Regulation." This includes "the option to permanently delete the iris code."

Download the Anycoin App

Finally, a crypto app for everyone!

Check it out