What is Worldcoin?

Worldcoin, now rebranded as World, is a digital identity and cryptocurrency initiative co-founded in 2019 by Sam Altman, CEO of OpenAI. The project employs iris biometric technology to verify human users, distinguishing them from automated entities.

Worldcoin's main components include:

• World ID: A digital “humanness passport” that allows individuals to prove they are unique and human online without revealing personal information.
• The Orb: An iris scanner device used to verify users and issue unique World IDs for them. It's produced by Tools of Humanity and its code is open-sourced.
• World Chain: The custom-built Ethereum Layer 2 network of Worldcoin, which recently went live on mainnet.
• WLD Token: An ERC-20 cryptocurrency and governance token of World Chain, airdropped to those who prove their humanity using the Worldcoin Orb.
• World App: A self-custodial app that facilitates payments, mini-applications, purchases, and transfers in digital and traditional currencies globally.

Worldcoin uses a "Proof of Personhood" model, ensuring that users can prove their uniqueness without revealing personal data, setting it apart from traditional identity systems like KYC.

How Does Worldcoin Work?

Worldcoin works through a two-step process that creates secure digital identities for users. First, users download the World App, which acts as their main interface and crypto wallet. Then, they verify their identity by visiting a Worldcoin Orb, receiving both a World ID and 25 WLD tokens as a reward for confirming they are a unique human.

The system ensures privacy through encrypted identifiers like the “IrisHash” and uses Zero-Knowledge Proofs (ZKPs) to verify users without disclosing personal data. World ID also supports multiple verification levels, including the advanced Orb+ option for added security, and allows users to reset their ID if needed.

What is World Chain?

World Chain is a Layer 2 network intended specifically to support digital interactions for verified human users. The network uses the OP Stack, making it fully compatible with Ethereum (EVM-equivalent) and part of the Optimism Superchain.

After high demand during its testnet phase, World Chain launched on the mainnet in October 2024 and now has over 15.95 million wallet addresses. Key features include:

• Free Transactions for Verified Users: Verified users with World ID receive a free gas allowance, lowering the cost barrier to interacting with blockchain applications.
• Native Integration with World App: Through World App, users can easily access World Chain, complete transactions, and interact with applications, all from their smartphones.
• Human-Priority Blockspace: World Chain prioritizes transactions from unique, verified users, ensuring efficient usage of network resources.
• Cross-Chain Bridging: Users can bridge ERC-20 tokens from Ethereum or other OP Stack chains, using World Chain’s native bridge.

Worldcoin Tokenomics

Worldcoin (WLD) is an ERC-20 token created to reward individuals who verify their humanity through the Worldcoin Orb system. The token’s total supply is capped at 10 billion, with 22.2% currently in circulation and a current price of 1 WLD at $2.55.

The WLD token allocation and vesting schedule are as follows:

• Community: 75% distributed across four 3-year cliffs, with daily token releases.
• Investors: 13.5% with a 1-year cliff, followed by daily vesting over 4 years.
• Initial Development Team: 9.8% with a 1-year cliff and daily vesting over 4 years.
• Tools for Humanity Reserve: 1.7% with a 1-year cliff, followed by daily vesting over 2 years.

Worldcoin Scanner Locations

Worldcoin has 391 Orb scanner locations across 17 countries, where users can verify their identity and receive WLD tokens. Major sites include cities in the US, Germany, Japan, and Argentina, with more locations planned as the project expands.

To find the nearest Orb, visit worldcoin.org/find-orb, select your country from the dropdown menu (if available), and click the location to open it on Google Maps for easy navigation.

Worldcoin Restricted Countries

Worldcoin faces restrictions or suspensions in multiple countries due to privacy, biometric data security, and regulatory concerns. As of late 2024, operations are limited or under suspension in France, the United Kingdom, South Korea, Brazil, Spain, Portugal, and Hong Kong.

In 2023, Kenya’s Data Protection Commissioner suspended Worldcoin enrollment (cleared in 2024), while privacy investigations were launched by authorities in France, the UK, and South Korea. In 2024, Spain’s Data Protection Agency, Portugal’s CNPD, and Hong Kong’s Privacy Commissioner halted Worldcoin’s data collection over iris scanning concerns.

Who Founded Worldcoin?

Worldcoin was co-founded in 2019 by Sam Altman, CEO of OpenAI; Max Novendstern, a former investment associate at Bridgewater Associates; and Alex Blania, a researcher in theoretical physics.

Altman brought his expertise in AI and innovation, while Novendstern and Blania handled operations and technology development, creating a team uniquely focused on merging digital identity with cryptocurrency.

Funding

Worldcoin has raised $240 million in three funding rounds from 27 investors, including venture capital firms Andreessen Horowitz and Blockchain Capital, alongside investors like Reid Hoffman.

The project saw gradual financial support, securing an initial $25 million in October 2021, followed by an additional $100 million within six months in March 2022, and a final $115 million injection in May 2023 at a valuation of $3 billion.

Worldcoin Token Applications

The Worldcoin token (WLD), alongside World ID, powers a diverse range of “Mini Apps” for utility, entertainment, and social engagement. These include financial tools like ORO for daily rewards, UNO for token management, and creative apps like World Art for NFT minting.

Additionally, Worldcoin has incorporated its World ID feature with several mainstream platforms, including Reddit, Discord, and Minecraft. This integration allows users to verify their human identity across these platforms using World ID, potentially receiving VIP roles.

Bottom Line

World, formerly known as Worldcoin, is redefining digital identity with innovations like the Orb, World ID, and World Chain. Although sometimes controversial, it has one of the most unique use cases in recent years with 7 million people having already scanned their irises.

Recently, at the “Hello World” event in San Francisco, the project introduced major upgrades: the new Orb model, powered by NVIDIA’s Jetson chipset, World App 3.0 now supporting Mini Apps, and World ID 3.0 that can store info from physical NFC-enabled passports.