Ethereum Co-Founder Warns Worldcoin Project Threatens Decentralization

Ethereum co-founder Vitalik Buterin has issued a stern warning regarding Sam Altman's digital identity project, World (WLD, formerly known as Worldcoin). Buterin expressed concerns about the project's potential to centralize power and undermine the principles of decentralization that are fundamental to the cryptocurrency ecosystem. He criticized the project for its reliance on biometric data, which he believes could lead to privacy violations and misuse of personal information.

Buterin's criticism comes as World continues to grow, having attracted more than 13 million “unique people” records. The project, developed by Tools for Humanity, a company founded by Sam Altman and Alex Blania, allows users to prove their humanity by scanning their eyes with devices called “Orbs.” In return, users receive both a World ID and WLD tokens. The biometric data used in the identity creation process is protected by zero-knowledge (ZK) technology.

In his paper, Buterin assessed the potential benefits and harms of digital identity systems that use zero-knowledge proofs (ZK). He argued that systems based on a “per-person identity” model, such as World, could threaten the privacy of internet users. “In a per-person identity system, even wrapped in ZK, we run the risk of all your online activities being effectively mapped to a single identity,” Buterin said, noting that eliminating anonymity could have serious negative consequences in an environment of increasing digital threats.

Buterin acknowledged the privacy benefits provided by ZK technology but noted that the system’s imposition of a single identity could be damaging in the long run. He pointed out that similar systems have become widespread in regions such as the European Union and that this trend is becoming global. “On the surface, the proliferation of ZK-powered digital identities may appear to be a significant gain against bots and fake accounts on social media, online voting, and various platforms,” Buterin wrote, but he warned that users' freedom to manage multiple email or social media accounts could be eliminated with these systems.

The World project is making progress despite criticism from privacy advocates. World, which has launched in the U.S., is preparing to issue a Visa card and is taking steps to authenticate users in a pilot program with Tinder. Despite these developments, Buterin proposes a more pluralistic model: “Instead of singular identity systems wrapped in ZK, a pluralistic structure should be adopted where identities can be provided in different ways by more than one institution, platform or person.”

Buterin's comments highlight the ongoing debate within the cryptocurrency community about the balance between innovation and the preservation of core values such as privacy and decentralization. As the market continues to evolve and innovate, it is crucial for projects to prioritize these values and ensure that they are not compromised in the pursuit of growth and adoption. The ongoing debate about the balance between innovation and core values will continue to shape the future of the cryptocurrency market, and Buterin's comments serve as a reminder of the importance of staying true to the principles that underpin the ecosystem.