Decentralized identity is the future’s solution to current problems regarding data privacy, identity verification, and fragmented systems. AI-generated fraud, synthetic identities, and keeping up with regulations and compliance updates make it more difficult for companies to secure user data.
However, the slow merge toward decentralization systems is bringing more transparency and security to the process of identifying users and businesses. Projects like Worldcoin aim to blend identity with finance through innovative programs and leverage its native token, which distributes ownership to users. Hence, the Worldcoin price depends on the growth of a vast ecosystem that contributes to the decentralized future.
As a pioneer in decentralized identity, cryptocurrency is part of an innovative movement toward safety and trust, so let’s explore its history.
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Worldcoin ecosystem
Worldcoin created various tools to establish a fair future of decentralization. First, World ID is an innovative technology that allows humans to sign into mobile and desktop apps and prove they’re human without needing to enter any data. For any online verification that allows further actions like voting or buying products, people can anonymously and securely ensure their human nature.
World ID uses the Face Auth technology as an additional security layer so that face authentication can prevent fraud. In addition, the authentication feature supports passport credentials, so people can connect their World ID with real-world forms of ID without the need for third parties.
The World ID feature is part of the World App, a network for users to leverage digital apps, receive Worldcoin rewards, and use them in Mini Apps. When verifying their humanness, people can receive the cryptocurrency for free when participating in the World Network. The token also allows for paying gas fees and buying in-game assets.
How does Worldcoin ensure humanness?
Proving identity is necessary to counteract fraud and identity theft, which have been increasing lately. That’s why the Worldcoin project created The Orb, a device created by Tools for Humanity that verifies a human being’s uniqueness. It processes pictures taken of people but doesn’t store them.
However, it encrypts the image and secures codes on your phone to prevent double verifications. Currently, there are Orbs all over the world, and their number is boosting as Worldcoin becomes more popular and demand for face identification.
Community operators can leverage the devices, which receive Worldcoin tokens for the number of individuals checked by the Orb. However, those who want to become operators must undergo an interview process and receive training on how to use the devices efficiently to contribute to the decentralization of identification.
The World Chain technology
Most of the features presented above are supported and developed by the World Chain blockchain that connects developers with millions of users worldwide. The permissionless, open-source Layer-2 solution exists with the help of Ethereum and the Superchain ecosystem that offers scalability.
The blockchain is also scalable to all humans and is secured through Sybil resistance, meaning it can successfully resist such attacks in case of multiple malicious attempts. Other benefits of the World Chain include low gas fees and the ability of users to contribute to the community through the World Community Grants Program. In other words, developers eligible for the program can receive help in building apps on the blockchain.
Why is decentralized identity so important?
In the middle of the AI rise, humans and companies are finding it more difficult than ever to return to human-to-human communication. Despite the numerous benefits of artificial intelligence in centralized systems, proving one’s humanness becomes a challenge when the AI is as close to being passed as a human being.
That’s why Wolrdcoin is the first of its kind to establish the technology that separates but brings together humans and technology at the same time. The solution reduced the risk of data breaches since sensitive information on the blockchain exists on multiple copies and cannot be tampered with once online. Worldcoin has also established seamless interoperability, so platforms can connect without various logins.
Decentralized identity is so important because it includes one’s digital footprint, which goes beyond personal information as we use it today. At the same time, the identity exists in a vast array of ecosystems, which makes the process of identification easier.
Can governments step in to create digital IDs?
As opposed to decentralized identities, digital identities might be the closest next step in striving for decentralization. There are methods for governments to switch from traditional forms of identification to modern systems, but there’s a staggering reluctance to manage them. While there have been attempts in numerous countries, it seems like the growing reliance on biometrics and digital identity is met with risks of data breaches and cyberattacks due to critical infrastructure.
The recommended approaches in establishing digital identities would include:
- Having a human rights and privacy regulation in place;
- Avoiding to collect biometric data until infrastructures are safe enough;
- Offering the service as a choice for consumers rather than an inflicted law;
- Aiming for public disclosure of partnerships and contracts;
However, there are many flaws in government-owned IDs
While a digital identity created from a trusted source would seem a better idea than approaching a decentralized system, governmental bodies tend to be exposed to many risks, including the use of outdated software and hardware.
Therefore, regardless of the innovation, it would still be challenging to protect consumers. On the other hand, a decentralized solution would better employ safety and usability, considering its nature. As long as consumers contribute to these ecosystems, they could also benefit from their own efforts. That’s how Worldcoin is a blockchain made for people to be able to use technological resources without being overthrown by them.
What do you think about Worldcoin?
Worldcoin is an innovative solution that could help establish decentralized identities. The technology behind it verifies humans and addresses their identity as a code, which they can use in multiple environments without double verification. At the same time, Worldcoin also leverages a blockchain solution, a cryptocurrency, and many decentralized applications that ensure transparency, user data safety, and support interoperability.
