Would you make Sam Altman’s eye scanner your online ID? – Crypto News

Yet, according to the World Bank, more than 10% of the world’s population—mostly in Sub-Saharan Africa and South Asia—still lacks any official or digital ID. Without identification, access to jobs, healthcare, financial support, mobile services, or even the right to vote can be severely limited. 

In this context, digital ID systems like India’s Aadhaar, the open-source Modular Open Source Identity Platform (MOSIP) from the International Institute of Information Technology Bangalore (IIIT-Bangalore), and OpenAI chief executive Sam Altman-backed World ID are gaining traction.

However, not all approaches are being embraced equally. Altman’s World ID, which aims to verify humans through biometric scans to counter AI-driven bots, is raising privacy alarms. On 20 June, when Semafor reported that Reddit is considering adopting World ID to comply with potential age-verification rules and curb fake accounts, the idea sparked a backlash, with some users even threatening to leave the platform if the system is implemented.

What’s World ID?

It is a relatively new entrant in the digital identity space. Aadhaar was launched in 2009, and nine years later, it inspired the creation of MOSIP. In 2019, Sam Altman and Alex Blania founded Tools for Humanity, which introduced a crypto project called World Coin and a World ID in July 2023 to verify users by scanning their eyes (iris) with a metallic device called the ‘Orb’. 

World, a real human network, says it currently has 12 million people who have signed up globally, and 26 million app downloads. In comparison, the 12-digit Aadhaar has about 1.39 billion registered users to date, while MOSIP has 133 million registered users to date in 26 countries across Asia Pacific, Africa, Latin America, and the Caribbean.

In early May, Altman rebranded the biometric system as World and unveiled the Orb Mini, a portable iris scanner that generates a blockchain-based World ID. The Orb now also has a mobile-phone-size counterpart. The World ecosystem currently comprises the World ID, World App, World Chain, and the Worldcoin (WLD) crypto token. 

One may download the World App to locate a nearby World Space. According to the company, more than 7,000 of World’s Orbs will be available for iris scans at physical “World Space” locations in the US and in Razer (a lifestyle brand for gamers) stores.

How does the technology work?

World ID uses an Nvidia-powered device called the Orb to create a unique cryptographic code that confirms a user is a real, unique person. Built on an open-source, decentralized protocol, World ID allows broad developer access. The Orb encrypts and signs user photos for security, sends them to the user’s phone via its server, and then deletes them. 

WLD, on the other hand, is capped at 10 billion tokens. It launched with 143 million—100 million loaned to market makers and the rest given to early verified users. WLD is now integrated with platforms like Tinder and supported by Visa and Stripe.

World ID may sound similar to CAPTCHAs that prove to machines that you’re a human through behavioural tests like image selection. But unlike CATPCHA, which is only a one-time requirement when accessing a website or online service, World ID aims to assign a persistent, global identity tied to one’s biometric signature. 

The comparison to India’s Aadhaar—the world’s largest biometric ID programme—is also understandable. But Aadhaar is state-run and central to accessing everything from rations to banking in the country. It captures fingerprints, iris scans, and demographic data under a legal framework—albeit with its own controversies over privacy and exclusion.

World ID, in contrast, is a private initiative. Its creators say World ID uses the open-source Semaphore protocol to prevent identity tracking across apps and publishes its code under an MIT-style licence that bans use for surveillance or rights-infringing purposes. They add that cryptographic protections like zero-knowledge proofs will ensure user anonymity, but these safeguards remain largely untested at scale.

So, why are there concerns?

While World has been launched in the US and the UK, regulatory pushback has been strong in other countries, with some banning Orb or Worldcoin, or both, outright. These include Brazil, Colombia, Germany, India, Kenya, Portugal, South Korea, Indonesia, and Spain, as well as the special administrative region of Hong Kong. The European Union (EU) has flagged potential violations of the General Data Protection Regulation (GDPR), citing issues with meaningful consent and data irreversibility.

Concerns about coercion are especially acute in low-income regions, where crypto incentives may push people to trade biometric data without fully understanding the risks. For instance, offline ‘Orb’ verifications and biometric identity-based user onboarding in India were stopped in late 2023. Besides, the Reserve Bank of India (RBI) has been consistent in expressing its displeasure with cryptocurrencies even as gains from cryptocurrencies in India are treated as income, and a 1% tax is deducted at the source. 

WLD is currently priced at ₹77.55 on the Coinbase exchange, a massive drop from its all-time high of ₹1,015.96 on 10 March 2024. With 1.66 billion WLD in circulation—17% of its 10 billion max supply—there were 322 trades involving 218 buyers and 117 sellers as on 25 June.

There are other concerns, too. In a 21 May note, Andras Cser, VP and principal analyst at Forrester, pointed out that Orb faces several key challenges that could limit its broader adoption. For one, unlike most identity systems that rely on built-in mobile sensors like cameras or fingerprint readers, Orb requires a specialized iris scanner, adding hardware costs and integration hurdles. 

Second, without mobile-compatible sensors, it struggles to support common use cases like travel check-ins or online registration, and could face serious scalability issues. Accuracy is also a concern. Factors like alcohol consumption or eye disorders can reduce the reliability of iris scans, Cser noted.

Privacy worries persist, as iris data, even if encrypted or deleted, raises questions about consent and data usage, Cser underscored. 

Security is another issue. Past hacks of iris scanners show they can be fooled by simple methods like doctored photos. Finally, Orb’s system isn’t linked to government-issued IDs like Aadhaar, limiting its utility for services that require formal verification, and its centralized design further restricts broader interoperability. 

As an example, MOSIP’s fully open-source codebase is available on GitHub. It also collaborates with the Institute of Electrical and Electronics Engineers (IEEE), governments, and industry partners to develop open standards and protocols, ensuring easy integration, interoperability, and cost efficiency. Further, its mobile digital wallet, Inji, enables residents to access their digital identities even in remote areas with limited connectivity.

Altman’s World believes that the project “…could considerably increase economic opportunity, scale a reliable solution for distinguishing humans from AI online while preserving privacy, enable global democratic processes, and show a potential path to AI-funded UBI (Universal Basic Income)”. 

However, the above-cited concerns underscore that the debate is not so much about whether digital identity is necessary in an AI-first world but more about who defines it, who profits from it, and whether consent can truly exist.