World, formerly known as Worldcoin, is not a typical cryptocurrency project. On a mission to help humanity adapt to the age of AI, the project was founded by OpenAI CEO Sam Altman, Alex Blania, and Max Novendstern and has raised $250 million in funding to date. Its goal is to develop a more reliable way to authenticate humans online through a blockchain-based digital identification solution called World ID.
To build this digital identity system capable of distinguishing humans from AI and bots with proof of personhood, World collects individuals’ iris data using a futuristic-looking device called the Orb. The Orb scans users’ irises to collect biometric data, which is then converted into IrisHash—a unique code derived from the iris scan. Once the IrisHash is generated, users can verify their identities and prove they are human with their World ID while maintaining full control over their personal data.
World has incentivized users to verify their World IDs and complete iris scans via the Orb by offering rewards in the native Worldcoin token (WLD), which Binance ranks as the 70th top cryptocurrency with a $1.19 billion market cap and nearly $195 million in 24-hour volume as of February 19, 2025. These incentives seem to be paying off, with World announcing 10 million verified users on World Network in January.
Why Does World Collect Biometrics From Humans?
According to World, the rise of AI agents is one of the key reasons it collects iris data from users to create an anonymous digital ID solution on the blockchain. These autonomous systems could enhance productivity, problem-solving, and creativity by performing complex tasks without human intervention. Many view AI agents as one of the hottest trends in Web3 as decentralized projects take the lead in integrating them with blockchain technology.
However, the long-term impact of AI agents remains uncertain, and World believes proactive measures are needed to mitigate potential risks. That’s why the project developed its proof of human (PoH) mechanism, which allows users to verify their humanness and uniqueness online without exposing their real identities. Functioning as a foundational layer for digital identity solutions, it acts like a “blue checkmark,” confirming that an online account or action belongs to a human who has been anonymously verified.
By enabling anonymous identity verification with World ID, World aims to create a system that can accurately and seamlessly distinguish humans from AI and bots. This could help combat online fraud and fake news while strengthening digital security for both platforms and users. If World’s claims hold true, users can verify their identities without revealing personal information or having their actions tracked by external entities, including governments and corporations.
World Faces Global Regulatory Scrutiny
While World presents itself as a solution for secure, private digital identification, its approach to collecting iris data has drawn criticism. Many are concerned about individuals surrendering their biometric information to a private for-profit company, Tools for Humanity, which operates the project.
Others have voiced concerns about World paying users in cryptocurrency for their biometric data, with some comparing the practice to bribery. A 2022 report by MIT Technology Review also alleges that the project exploited citizens in developing countries, acquiring iris scans through deceptive marketing practices and without meaningful consent.
Beyond criticism, multiple governments have taken action against World due to its controversial biometric data collection practices. Kenya was the first to suspend the project’s local activities in August 2023. Other jurisdictions soon followed, including Spain and Portugal in March 2024, and Hong Kong in May. In September, the Worldcoin Foundation and Tools for Humanity were fined $829,000 in South Korea for violating personal data protection laws. More recently, Germany’s Bavarian State Office for Data Protection Supervision (BayLDA) ordered World to delete citizens’ iris data in December 2024, while Brazil banned the project from offering crypto incentives to locals in January 2025.
Despite mounting criticism and regulatory pressure, World maintains that it does not store users’ biometric data. The company asserts that all information is erased after conversion into a cryptographic IrisHash. Additionally, it has emphasized that the project is designed to comply with all relevant laws and data protection regulations, including the EU’s GDPR.
World’s biometric data collection and crypto incentives continue to spark debate over privacy and ethics. While the project aims to create a secure digital ID system, critics warn of the risks of entrusting a for-profit entity with sensitive data. With increasing global scrutiny, the project’s future remains uncertain as it navigates regulatory challenges and public concerns. However, its milestone of 10 million verified users suggests growing adoption and interest in its digital identity solution.
