The worldcoin cryptocurrency refers to a world currency that will reach the hands, or rather the electronic devices, of “the majority of human beings living today,” making it “the most widely distributed digital currency,” reads the founding document of this cryptocurrency, titled Tokenomics.
The cryptocurrency presented by Sam Altman promises to become the vehicle for a universal basic income, a direct transfer of money granted by a government, which is periodic, uniform, individual, and universal, so it is delivered to the entire population.
What is Worldcoin?
Worldcoin is a project that aims to create an identity and financial network. According to the network’s white paper, it has the purpose of delivering an amount of the world coin token to people in exchange for verifying their identity as a requirement to join the network.
Although the development of the Worldcoin project began in 2021, registration to receive the token of this blockchain-based network began in April 2023, and the Worldcoin token was launched in July.
Who created Worldcoin?
The idea for Worldcoin came from Tools for Humanity founders Alex Blania, Max Novendstern, and Sam Altman. The latter also heads the artificial intelligence technology giant Open AI, creator of ChatGPT, and has become one of the main spokespersons for Worldcoin globally.
Tools for Humanity is a corporation incorporated in Delaware with headquarters in San Francisco, both American cities, and has been in charge of developing Worldcoin’s technological infrastructure. However, custody of the network that supports the cryptocurrency was handed over to the Worldcoin Foundation in October 2022.
The Worldcoin Foundation is a non-profit company incorporated in the Cayman Islands, with a subsidiary in the British Virgin Islands called World Assets Limited. According to the Worldcoin white paper, the foundation was established under this legal structure to function as a decentralized autonomous organization (DAO).
Among the responsibilities of the Worldcoin Foundation are the administration of the network software and hardware and the data that is transmitted and stored on it; the development of new identity verification devices; research around the Worldcoin protocol; as well as the creation of a scholarship program that encourages the evolution of the Worldcoin ecosystem.
How does Worldcoin work?
A DAO is a form of organization that uses blockchain technology to operate in a decentralized and autonomous manner without the need for a central authority or intermediaries. This type of organization allows for a shared governance model in which the community of world coin token owners would presumably be the decision-makers of the network.
The Worldcoin decentralized autonomous organization system is based on an identity network called World ID. Through this network, users will be able to verify that they are “real and unique humans” to access “any platform that is integrated into the (Worldcoin) protocol, including Web3 systems, social networks, and government programs.”
To join the network, people must come into contact with three different technologies linked to each other: an application, a biometric data recognition system, and a cryptocurrency, the world coin token.
Conclusion
Worldcoin itself warns that crypto market products are risky and their “regulatory treatment is not regulated in many jurisdictions”. For this reason, it is likely that there is no legal protection around the token and that its value can change “quickly and be lost entirely. In addition, the technologies that support this cryptocurrency are experimental in nature. “There is no guarantee that the network will function as intended.”
