Vitalik Buterin Identifies Four Risks for Worldcoin (WLD): A Cryptocurrency Alert

• Vitalik Buterin, the co-founder of Ethereum, has raised concerns about Worldcoin’s identity verification solution, citing issues related to privacy, accessibility, centralization, and security.
• Worldcoin’s “Proof-of-Personhood” (PoP) system is designed to verify a user’s unique identity in a decentralized manner, using an application and a device named “Orb” that scans the user’s eyes to confirm their humanity and uniqueness.
• Buterin has suggested combining three main approaches – social-graph, general hardware biometric, and special hardware biometric techniques – to mitigate the risks he identified and create a decentralized, scalable system that ensures privacy and prevents the creation of fake identities.

Vitalik Buterin’s Critique of Worldcoin’s Identity Verification Solution

Worldcoin’s Proof-of-Personhood System

Worldcoin has developed a unique system known as “Proof-of-Personhood” (PoP) to verify the unique identity of a user in a decentralized manner. Users download an application and allow their eyes to be scanned by a device named “Orb”. This device confirms the user’s humanity and the uniqueness of their iris, generating a hash of the eye and ultimately creating a “World ID” for each user. This system allows individuals to prove their identity without sharing detailed personal information, thereby preserving their privacy and security.

Buterin’s Concerns about Worldcoin’s System

Despite the innovative approach, Ethereum co-founder Vitalik Buterin has raised several concerns about Worldcoin’s PoP system. He points out potential risks related to privacy, accessibility, centralization, and security.

Privacy Risks

Buterin suggests that Worldcoin’s system could pose privacy risks. Although the system only stores hashed versions of the users’ irises and employs cryptographic techniques such as ZK-SNARK to protect user identity, there is a risk of misuse or leakage of information. If someone conducts an eye scan, they could potentially check the database to see if you have a World ID, thereby revealing more information than intended.

Accessibility Issues

Buterin also highlights accessibility issues, noting that users must physically access the Orb device to participate in the system. This requirement could create inequality in Worldcoin distribution and disproportionately benefit urban centers.

Centralization and Security Concerns

Centralization is another concern raised by Buterin. He argues that the integrity of the Orb hardware device cannot be verified, potentially allowing for “backdoors”. Even if the software layer is decentralized, the Worldcoin Foundation could create a backdoor and generate fake identities. Furthermore, Buterin points out security risks such as phone hacking, forced eye scanning for others, renting identities, and creating 3D prints of fake humans.

Buterin’s Proposed Solution

To mitigate these risks, Buterin proposes a combined approach involving social-graph, general hardware biometric, and special hardware biometric techniques. This combination could create a decentralized, scalable system that ensures privacy and prevents the creation of fake identities. However, no response to Buterin’s criticisms has been received from Worldcoin or Sam Altman, the co-founder of Worldcoin.