What is Worldcoin (World Network)?

Worldcoin, now officially rebranded as World Network, often referred to simply as "World," is a digital identity and financial project backed by Sam Altman, CEO of OpenAI. The project aims to create the world’s largest identity and financial network that functions as a public utility, offering ownership and access to everyone. Along with the rebranding, World Network announced the launch of its new blockchain, World Chain, which operates as a Layer 2 network secured by Ethereum. This shift reflects an evolution in the project's mission and a broader vision for accelerating global human interaction and identity verification in an AI-driven world.

World Chain, which is now live on the mainnet, is supported by major players in the blockchain space, including Optimism, Alchemy, Uniswap, Safe, Dune, and Etherscan. Built on Ethereum's security, World Chain is expected to provide enhanced functionality for users while integrating core components like World ID, World App, and Worldcoin's native token, WLD. The platform emphasizes seamless global identity verification and financial inclusion, positioning itself as a critical component of the evolving digital ecosystem.

How Does Worldcoin Work?

The World Network operates through its foundational system, World ID—a privacy-preserving identity network designed to verify individuals' "humanness" through Proof of Personhood, while ensuring data privacy through zero-knowledge proofs. To acquire a World ID, users can download the World App and then visit a physical imaging device called the Orb. These Orbs, operated by independent businesses known as Orb Operators, use multispectral sensors to verify users' uniqueness, and all images are deleted immediately unless explicit consent for data custody is provided.

Worldcoin (WLD), now a part of World Network, serves as a utility and governance token on the platform. Users who verify their identity via the Orb receive recurring grants of WLD tokens, helping to drive widespread adoption of the cryptocurrency. WLD tokens are also used for governance, with a unique combination of "one-token-one-vote" and "one-person-one-vote" mechanisms made possible by World ID, paving the way for novel governance structures in the Web3 space. Furthermore, WLD tokens can be used for various purposes, such as paying for actions within the World App, making payments, or signaling support for specific initiatives.

WLD is an ERC-20 token deployed on Ethereum, and most transactions involving WLD are expected to occur on the Optimism Mainnet, enhancing scalability and cost-efficiency. World Network is also expanding its verification processes beyond the Orbs by introducing World ID Credentials, which allows users to verify their identity through other avenues, such as using NFC-enabled government-issued passports.

The project has recently introduced upgrades to the Orb devices, making them five times more powerful while reducing their carbon footprint. The upgraded Orbs will soon be deployed in self-service kiosks across select markets, facilitating the rapid deployment of identity verification on a global scale. Additionally, World Network is integrating with popular apps like WhatsApp, FaceTime, and Zoom to provide seamless identity verification within platforms that users already engage with, thus accelerating adoption.

Worldcoin's Founding Team

World Network, originally known as Worldcoin, was founded by Sam Altman, Alex Blania, and Max Novendstern. Sam Altman, the most prominent figure among the co-founders, is well-known as the co-founder and current CEO of OpenAI, as well as the former president of Y Combinator, one of the leading startup incubators. Altman's vision for World Network is rooted in his belief in creating a decentralized public utility that empowers people globally by giving them control over their digital identities and financial futures.

Initial research and development for World Network was conducted by Tools for Humanity (TFH) along with several other partners. The project has garnered significant financial support, raising over $250 million across multiple funding rounds from notable investors, including a16z, Khosla Ventures, Bain Capital Crypto, Blockchain Capital, and Tiger Global. This strong backing underscores the widespread belief in World Network's potential to become a transformative player in the identity verification and blockchain space.

In October 2023, during a keynote address, Sam Altman announced the project's rebranding and the launch of World Chain. He also introduced significant updates to the Orb devices and showcased the network’s new integrations and features, such as World ID Deep Face, a tool designed to block deepfakes and ensure the authenticity of media content. These initiatives are part of Altman’s broader vision to build a network that accelerates human interaction and identity verification, securing a vital role for World Network in an increasingly digital and AI-driven society.

How WLD's Narrative Boosts Its Price?

Despite the lack of utility, WLD's price has been heavily influenced by the narrative surrounding AI development. This narrative posits that as AI technology advances, the value of WLD will rise alongside it. This association is primarily driven by two factors:

•    OpenAI Connection: WLD is closely linked to OpenAI, a prominent research laboratory focusing on developing safe and beneficial artificial intelligence. This connection stems from the fact that the founders of OpenAI were also involved in the creation of WLD, like Sam Altman, the most well-known among the co-founders.

•    AI Industry Growth: The rapid advancements and growing popularity of AI across various industries have fueled investor confidence in WLD. This is evident in price surges like the one observed in February 2024, coinciding with the launch of OpenAI's "Sora" project. After this AI-video generator was launched, the price of WLD rose significantly from around $2 to $8. If the bubbles of AI keeps expanding, investors' confidence over WLD will not fade away either.

Worldcoin (World Network)’s Tokenomics

World Network aims to create the world's largest identity and financial network, allowing users to verify their identity through a privacy-preserving system called World ID. By using World App and getting verified through the Orb, users can claim free WLD tokens and participate in governance, with most transactions happening on the Optimism network.
The total supply of World Network is currently capped at 10 billion tokens with no maximum supply, with allocations as follows:

•    WorldCoin Community 75%
•    TFH Investors 13.5%
•    Initial Development Team 9.8%
•    TFH Reserves 1.7%

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