Ethereum, the world’s second-largest cryptocurrency by total market value, has been losing ground to Bitcoin for the past six months, reaching its lowest levels. Today, Vitalik Buterin, co-founder of Ethereum (ETH), made significant statements about Worldcoin (WLD), the most talked-about cryptocurrency of the day.
Vitalik Buterin, the co-founder of Ethereum, published a detailed article about the Worldcoin system, which creates unique identities for individuals by scanning their retinas. Worldcoin, also known as WLD token, which is a project of OpenAI CEO Sam Altman, has drawn a lot of attention for this aspect.
Buterin discussed important risks such as privacy, accessibility, centralization, and security. According to Buterin, the Proof of Personhood (PoP) system of Worldcoin carries significant risks. Buterin also proposed an alternative to this system and the associated risks.
PoP is described as a system that allows individuals to verify their uniqueness and singularity in a “decentralized” manner without the need for any central authority. It is emphasized that it is unnecessary and unnecessary for individuals to share their personal information. One of the main purposes of this is to protect against Sybil attacks and prevent individuals managing thousands of wallets from continuing to do so.
Buterin stated that the Worldcoin project scans retinas, which will create serious privacy issues. Although the system currently only stores encrypted versions of retina scans and provides privacy with zk-snarks, Buterin believes that someone can somehow access the retina information beyond this encryption. It is emphasized that this has the potential to reveal more information.
Another issue highlighted by Buterin is the issue of accessibility. According to Buterin, it is impossible to use the platform without accessing the Worldcoin lenses (Orbs) located in different locations in the real world. This seriously affects the accessibility of the project.
The third risk mentioned by Buterin is centralization. Although the project is focused on decentralization, its software is decentralized, but everyone else is centralized. Buterin stated that Worldcoin has control in this regard and the Worldcoin team can technically produce fake identities to gain the majority in decentralized governance.
Finally, the security risk of the Worldcoin system caught Buterin’s attention. The famous figure stated that incidents like phone hacking could directly result from retina scanning. In addition, 3D scans of “fake people” can also pose security risks. Despite pointing out these factors, it cannot be ignored that Worldcoin is an important project.