OpenAI co-founder Sam Altman, already well known for the worldwide success of ChatGPT, is once again at the center of media attention, this time as co-founder of “Tools for Humanity”. His latest project: Worldcoin, a biometrics-based cryptocurrency, which has sparked debate on personal data management and digital sovereignty, while promising disruptive advances… for a better world. ?
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- Certifying digital identity with eye biometrics
- “Give me your iris, I’ll give you cryptos”
- An attractive but intrusive technology
- Expected value creation for economic players
- A blurred approach to personal data management
- Security loopholes to be closed
- An attack on state sovereignty
- A possible drift away from social control
- A citizens’ debate on the adoption of Worldcoin?
- Worldcoin: An uncertain future to watch
Certifying digital identity with eye biometrics
Worldcoin is unique in that it is associated with iris scan technology. To carry out these biometric scans, the company has set up centers in cafés and coworking spaces where people can register and have both eyes photographed by a machine designed by Worldcoin called “Orb”.
“Give me your iris, I’ll give you cryptos”
Once biometric data has been registered in the database, each user is issued with a digital passport called “World ID”, and in return receives WLD tokens, the system’s cryptocurrency: each new user receives 25 WLDs and then 1 token per week, which can be attractive in low-income countries, as a WLD token is valued at around 1.5 USD on August 21, 2023). The World ID is then associated with a type of QR code in the smartphone, which would then suffice to identify each user precisely. Users could then carry out transactions, access secure areas or benefit from personal rights.
This technology therefore goes far beyond a virtual currency, and could bring about major changes for governments, businesses and individuals. This is why, as soon as it was launched, there was an outcry from a number of players, particularly public sector ones, who saw it as a very serious threat.
An attractive but intrusive technology
Anticipating the criticism, Worldcoin presented itself in a seductive light: it would combat fake online accounts, and guarantee a reliable digital identity for payments or access to rights. There’s even talk of a project to create a universal income by distributing free crypto-currency to users simply by their existence on the system.
But when it’s free, it’s usually the user who becomes the product. In fact, Worldcoin provides no guarantee that data from multiple sources will be cross-referenced, nor that this highly-qualified, and therefore potentially lucrative, data will be resold for advertising purposes. In this case, we can expect commercial use of this personal data in the more or less long term.
Expected value creation for economic players
Worldcoin has the potential to impact various sectors, such as traditional financing services, with a secure, decentralized and low-cost alternative for online payments and money transfers.
Identity certification considerably increases the advertising value of accounts on social networks (compared to uncertified or anonymous accounts). Cross-checking personal data with other sources multiplies its value. What’s more, online and offline authentication integrated with everyday actions could extend the sources of information. This high data quality could well tempt governments and companies to use the system, and thus contribute to its mass adoption.
A blurred approach to personal data management
For some security experts, Worldcoin aims to build a centralized biometric database, unlike solutions like Apple’s FaceID, whose biometric information never leaves the device. But Worldcoin claims that it does not store or transfer users’ biometric data, but only encrypts it and stores it locally on the Orbs used to scan each iris.
However, it’s hard to believe Sam Altman’s commitments when you consider OpenAI’s past reversals. While the company was initially committed to sharing its research in a transparent, associative and non-profit way, it ended up doing just the opposite in order to become part of the Microsoft ecosystem. Likewise, Worldcoin has announced that personal data will eventually be completely eliminated and biometric data will thus be totally anonymous, but there is no timetable for verifying that this will actually happen. This is why several countries, including France (via the CNIL), are currently investigating the methods and procedures used to collect, store and use personal data.
Security loopholes to be closed
What’s more, Worldcoin raises a number of security issues, not mentioned here, which could hinder its development. For example, hackers had installed malware on the personal devices of several Orbs operators, to steal their access credentials to Worldcoin’s online portal and application(see Frédéric Martin’sarticle to find out more about the security holes). Assuming that Worldcoin manages to correct all the technical problems, this authentication system faces two major challenges: an attack on the sovereignty of states, and a possible drift towards social control.
An attack on state sovereignty
The identity of individuals is currently certified exclusively by the nation-states that provide official identity documents. With Worldcoin, this service is now provided by a private international player. If states lose their monopoly on the identity of their nationals, they may also lose other prerogatives, such as tax collection, payment of social rights, voting rights, access to healthcare, and so on. In the long term, this could lead to an unprecedented weakening of state power.
The coupling of certified identity with blockchain traceability makes it an extremely powerful tool for social control. Some see this as the advent of a global “Big Brother”. Indeed, Worldcoin is a cryptocurrency based on blockchain, a technology that ensures the traceability of all transactions in a public register anonymized by complex identifiers. Combining these anonymous identifiers with biometric recognition makes the system completely transparent: all data relating to individual transactions, rights and access are recorded, stored and accessible to authorized persons.
A citizens’ debate on the adoption of Worldcoin?
For citizens, Worldcoin raises questions: Personal “World ID” identity is no longer managed by a state with known laws and representatives, but by a foreign private company, imposing its own conditions of use. The governance of the system can quickly drift, for example by making personal rights and remuneration conditional on expected behavior, for example by local authorities, companies and sponsors, or with a deadline for using the currency. What will be the possible recourse and democratic legitimacy of these systems?
Worldcoin: An uncertain future to watch
The security problems posed by Worldcoin are numerous and probably insurmountable, which would consign Worldcoin to the dustbin of history. On the other hand, when such a device is considered technically reliable (as with Bitcoin), we can expect rapid adoption.
While the incentive to share biometric data for money poses an ethical and legal problem, the biggest fear concerns the large-scale collection of biometric data, which increases the risk of misuse, especially given the traceability of blockchain records.
At this stage, the future of Worldcoin still seems very uncertain. Its development depends in particular on 3 parameters to be monitored: the evolution of the regulatory status of Worldcoin in the major countries, the evolution of the number of users worldwide, and detected security flaws. The events of the next few months will undoubtedly provide an indication of the general trend.
By Alexandre SONNET
President of Humind