"Humanity Protocol Raises $20M, Valued at $1.1B, Challenging Worldcoin with Palm Scan ID"

Blockchain identity platform Humanity Protocol has reached a valuation of $1.1 billion following a successful fundraise, according to a report by Reuters. The decentralized identity project, which aims to develop a network using palm scans to verify online accounts, raised $20 million in a funding round led by Pantera Capital and Jump Crypto.

Humanity Protocol's founder, Terence Kwok, stated that the protocol allows users to prove their humanity without revealing personal details, helping to solve issues like bots, fake accounts, and online fraud. The company is planning to issue a token soon, with final preparations underway for a smooth launch.

The funding will be used to accelerate the development of Humanity Protocol's Proof of Humanity, Human ID, and seamless integrations with leading Web3 platforms. With the support of Jump Crypto and Pantera Capital, the project is poised to scale its operations, expand its global reach, and drive adoption across industries beyond Web3.

Humanity Protocol is not the first project to use biometric identification with Web3 financial services. In 2023, OpenAI's Sam Altman co-launched Worldcoin, which uses iris scans to generate a distinct digital identity. However, Worldcoin has faced scrutiny from data protection authorities in Brazil and Germany due to alleged mishandling of biometric data.

Earlier this month, Kwok told Cointelegraph that Humanity Protocol's palm scans are less invasive than World's iris scans without sacrificing security. Despite its controversy, biometric verification is considered an important driver of Web3 adoption and integration with financial services and healthcare.

In a September podcast with Cointelegraph, Privado ID's chief product officer, Sebastian Rodriquez, said biometric verification doesn't have to be a privacy nightmare. He cautioned against equating privacy with anonymity and praised World's technology but questioned its business model.

Humanity Protocol's innovative palm-scan verification method presents a less invasive alternative to traditional biometric data collection, addressing privacy issues facing its main competitor, Worldcoin. The company's recent funding and upcoming token launch position it as a direct competitor to Worldcoin in the digital identity sector.

The competitive landscape for digital identity solutions is heating up, especially following Worldcoin's legal challenges concerning the handling of biometric data. Humanity Protocol plans to use its recent funding to expand its global outreach and cultivate partnerships, which