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What is Worldcoin? ChatGPT founder's crypto project has raised security concerns Users scan irises via a silver orb, and get paid crypto in return Altman says project will help differentiate real humans from AI Advocates say it could also be used to facilitate a universal basic income By Daniel Fessahaye Updated: 01:00 EDT, 28 July 2023 e-mail View comments Sam Altman, the founder of AI software ChatGPT, launched a new project on Monday which gives users cryptocurrency in exchange for scanning their eyeballs. He says the aim of Worldcoin, which was founded in 2020, is to create a new 'identity and financial network owned by everyone'. It will collect biometric information from its users, including via facial recognition and iris identification. This information, the company says, will be used to create a system where it is easier to differentiate real humans from AI. Sam Altman (pictured) in a launch letter on the company's website believes that if successful 'Worldcoin could drastically increase economic opportunity' Users are asked to take an iris test using a silver ball known as the Worldcoin 'orb' and those who take part will receive free Worldcoins. On the launch of the project, OpenAI founder Altman said: 'If successful, we believe Worldcoin could drastically increase economic opportunity, scale a reliable solution for distinguishing humans from AI online while preserving privacy, enable global democratic processes.' However, not everyone has been as enthusiastic about Worldcoin as Altman, with some figures in the crypto sector expressing concerns. We decided to take a look at how Worldcoin works, what the tokens might be worth, and what people should know before getting involved. RELATED ARTICLES Previous 1 Next Bitcoin will SURGE to $120,000 by the end of 2024 according... Use crypto ATMs and you risk losing your money, warns City... Young people saddled with vast student debts and struggling... Crypto clampdown: Watchdog bans 'refer a friend' bonuses,... Share this article Share A participant stares into a silver Worldcoin Orb in exchange for crypto tokens What are the potential security risks of Worldcoin? Glen Goodman, author of The Crypto Trader, told This Is Money: 'My first reaction was "there's no way I'm putting my eyeball near that thing". 'The privacy implications make me very nervous. One of the main security risks is the orb itself. We don't know what's inside the sphere and so we don't know whether it's possible for someone to hack the orbs and retrieve our iris scans. When you have your iris scanned, you're basically agreeing to hand over some of your most personal identifying data to a company based in the Cayman Islands 'When you have your iris scanned, you're basically agreeing to hand over some of your most personal identifying data to a company based in the Cayman Islands, a tax haven. Do you trust that company not to misuse it? And if so, why?' The long-term value of the cryptocurrency users receive is also uncertain, he added. 'So far, the promise of free Worldcoins has drawn in millions of people,' Goodman continued. 'With crypto, this kind of hype can of course push tokens up in value enormously, so £50 of tokens could potentially become £100 or £500. 'But the number of tokens for sale on the open market looks set to rise and rise over the coming years, and of course as the market is flooded with tokens, that will put downward pressure on the price. That doesn't necessarily mean the price will crash, but it's a risk investors should bear in mind.' Could AI really pay for a universal basic income? Altman has also said Worldcoin could become the bedrock of a future 'AI-funded' universal basic income (UBI). UBI is a policy concept whereby citizens of a country would regularly receive a guaranteed income, without means testing or the need to work. How Worldcoin would enable such a policy to come into effect is not entirely clear. But Anna Stone, director of GoodDollar, praised Altman and the launch of Worldcoin. GoodDollar is a community-driven non-profit project launched in 2020 which generates and distributes digital money as a means of creating access to wealth for those facing poverty and inequality. Stone said: 'The launch of Worldcoin marks a huge milestone for both blockchain and UBI. Their effort to find a solution to decentralised ID is the most ambitious approach we have seen to date, and hopefully something that others can build on. 'Almost two billion people around the world currently lack access to basic financial services such as a bank account, yet the majority of this group will have smartphones, meaning that with internet connection, they could access some form of digital UBI. 'Blockchain-based UBI therefore offers the opportunity to create sustainable wealth in some of the most impoverished places in the world and the arrival of Worldcoin and Sam Altman in this space can help to accelerate widespread awareness of this journey and its tremendous potential.' Ethereum founder, Vitalik Buterin, responded to the launch by releasing a lengthy blog post expressing his concerns Ethereum founder, Vitalik Buterin, responded to the launch by releasing a lengthy blog post in which he shared his concerns. Although the 29-year-old sees a proof of personhood system as 'valuable', he expressed concerns over the scanning of someone's iris as it could lead to more data being shared than required. This could potentially lead to the revelation of a person's sex, ethnicity and even medical conditions. Twitter founder and a big advocate of crypto, Jack Dorsey appeared to criticise Altman's project in a series of tweets He also expressed concerns over its practicality, this is because the 'orb' is a hardware device. If everyone wanted a World ID they would all need access to an 'orb' which would be difficult to implement, potentially limiting the number of people that will get involved. In reference to the orb, the Russian-Canadian computer programmer also said that 'we have no way to verify that it was constructed correctly and does not have backdoors'. Twitter founder and a big advocate of crypto, Jack Dorsey, also appeared to raise privacy concerns over Altman's project in a series of tweets, saying: 'Visit the orb or the orb will visit you.' What has the Government said about Worldcoin? The Information Commissioner's Office, which covers UK data privacy rights said it will examine the business. An ICO spokesman said: 'Organisations must conduct a Data Protection Impact Assessment before starting any processing that is likely to result in high risk, such as processing special category biometric data. 'Where they identify high risks that they cannot mitigate, they must consult the ICO. 'Organisations also need to have a clear lawful basis to process personal data. Where they are relying on consent, this needs to be freely given and capable of being withdrawn without detriment. 'We note the launch of WorldCoin in the UK and will be making enquiries.' DIY INVESTING PLATFORMS Stocks & shares Isa Stocks & shares Isa Easy investing Capital at risk. Isa rules & T&Cs apply. 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