Worldcoin’s approach to decentralized identity: Privado ID CPO weighs in

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As a seasoned crypto investor with a keen eye for both opportunities and potential pitfalls, I’ve seen my fair share of ambitious projects that promise to revolutionize the digital landscape. Worldcoin, the brainchild of Sam Altman and his partners, is no exception. With its grand vision of establishing a global digital ID system and introducing a universal currency, it initially piqued my interest.

Since its debut towards the end of July last year, Worldcoin, an innovative project conceived by Sam Altman (CEO of Open AI) along with two of his associates, has faced a series of controversies.

As someone who has spent years working in the tech industry, I can confidently say that the concept of a global digital ID system, a universal currency like Worldcoin token (WLD), and a World App for seamless transactions is truly intriguing. In my experience, I’ve seen the challenges faced by people worldwide when it comes to managing multiple identities and navigating various financial systems, especially in less developed regions.

Upon its debut, the response to the project was split. While privacy activists and regulatory bodies from various regions voiced concerns about potential dangers associated with gathering extensive biometric data, the initiative successfully attracted more than 2 million users eager to obtain a digital ID during its early stages.

Under the influence of regulatory demands, Worldcoin chose to adopt a Secure Multi-Party Computation method to protect scanned iris information. This system converts the sensitive data into confidential parts that are dispersed amongst several entities, aiming to alleviate worries related to data concentration.

At its launch, certain nations had prohibited the project, while others were examining its methods of data gathering.

Regarding the project, it faced diverse opinions but managed to establish 119 iris-scanning devices (known as ‘orbs’) across 18 different countries during its initial phase. The aim now is to increase this number significantly, targeting a global presence of around 1500 units. Simultaneously, the World App has seen tremendous growth, amassing more than 10 million users.

Although Worldcoin’s method for decentralized identity is promising, there are continuing discussions about whether it effectively addresses the larger problems involved.

Addressing crypto.news, Sebastian Rodriguez, Chief Product Officer at the decentralized identity platform Privado ID, pointed out that although Worldcoin’s application of cryptographic methods is praiseworthy, there are still significant concerns about governance and transparency that need to be addressed.

What are your thoughts on Worldcoin’s biometric data collection efforts? 

Recently, Worldcoin disclosed their plan to erase all biometric data and distribute it within a Secure Multi-Party Computation (MPC) network. This move addresses a significant technical concern regarding data centralization. Moreover, Worldcoin employs a system called nullification to shield users from cross-application tracking across platforms. From a technical perspective, we deem the revised Worldcoin method secure.

Do you see any shortcomings with the project’s current approach to security?

The complexity of security goes beyond just the technical aspects; it encompasses the overall solution (the technology, people, processes, and power structures). In our view, Worldcoin is employing suitable cryptographic tools to ensure privacy and security, but they seem to deviate from the decentralization and transparency principles that characterize many Web3 projects. Although they’ve made strides in open-sourcing their technologies (even hardware to some extent), there are lingering questions about the project’s governance, long-term objectives, and token distribution model.

Essentially, their system functions best when it’s the sole provider for verifying uniqueness, similar to a specific type of credential that relies on unique, non-standard biometric data templates. Unlike national ID documents which can have multiple providers for identity verification, this system is built around a single private organization controlling an exclusive, non-standardized biometric hash database.

Does Worldcoin’s assertion that Secure Multi-Party Computation improves both data privacy and security by dispersing biometric data among several entities resonate with you as a potential solution to address the ethical dilemmas?

It’s crucial that technical security considerations don’t stifle ethical discussions about the long-term effects of a permanent, unalterable identifier assigned to me. This identifier is one I cannot refuse to possess, can be compelled to disclose, and cannot modify. The potential consequences are profound and, in certain situations, potentially harmful.

In spite of the debates, Worldcoin has managed to attract a significant amount of interest. I’m curious, what factors do you believe are contributing to its popularity?

Each token-based venture carries the risk of speculation, and Worldcoin is no exception. It’s worth noting that they share connections with Sam Altman and OpenAI, an association that, in my view, has stirred up debate and attracted both criticism and investment. Some people believe that OpenAI is essentially funding a challenge they are helping to develop (artificial identities), which raises ethical concerns as well as economic opportunities. This perceived conflict of interest could be seen as problematic.

Is it possible to strengthen and streamline identity verification systems, reducing dependence on biometrics, by improving their security and efficiency?

Biometrics is at the core of all identity systems, even National ID and Passports. It’s not about the technology, but about who is the source of trust and how centralized it is. We believe that governments should play that role, and with projects like EUDI [the European Unitons’s digital identity solution] it’s going to become more available for many citizens. Some alternatives are based on networks of trust (social graphs, p2p vouching, etc.), but none of these has seen mass adoption so far. 

Could you share some essential factors that need to be taken into account when designing identity solutions at Privado ID to ensure they adhere to global privacy regulations?

We strongly support open networks that seamlessly work together (interoperability). Instead of relying on a sole identity provider, which can seem more efficient and convenient, it’s crucial to encourage a diverse marketplace of competing and regionally-focused identity providers. This promotes fair competition, offers options, prevents monopolies, and allows for adaptability according to local laws. For instance, instead of incorporating Age Verification into our Google or Apple accounts with phone or email verification, it’s wiser to have multiple Age Verification providers that share compatible credentials. Doing so keeps companies from amassing vast databases of your credential usage locations and ensures compliance with all relevant local regulations on the topic.

How does Privado ID tackle the issue of building open environments and guaranteeing compatible credentials across its system, specifically?

As a researcher in this field, my team and I are dedicated to establishing a robust foundation that enables the creation and maintenance of open, interoperable ecosystems for digital credentials. Unlike traditional systems, we don’t issue these credentials ourselves; instead, our focus is on empowering identity providers and users with seamless platforms for exchanging and monetizing these credentials in a way that prioritizes privacy protection and enhances user experience.

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2024-08-05 15:49