Launch of a controversial digital identity crypto project; Worldcoin has caused a flurry of attention and controversy. Led by Sam Altman, CEO of OpenAI, Worldcoin made headlines by promising to introduce a futuristic digital identification system based on iris scanning that distinguishes humans from artificial intelligence (AI) objects.
The proof of humanity process generates a unique World ID, with all biometric data stored on a decentralized blockchain. The innovation lies in a zero-knowledge proof mechanism that allows for human verification without exposing the underlying data.
Despite controversy since its inception, Worldcoin received an impressive $115 million in funding in May and amassed over 2 million registrations prior to its debut. The official launch, which took place on July 24, was met with some indifference.
However, many critics of the project have raised concerns about data privacy, questioning Worldcoin’s approach to protecting and managing personal information. While the design claims to comply with relevant laws and regulations, experts have pointed to potential vulnerabilities in its design. Cybersecurity experts and Ethereum co-founder Vitalik Buterin have warned about the methodology used to create the World ID.
The company now plans to make its technology available to businesses and governments to implement localized systems without collecting personal information, which could have several implications.
Finally, the fact that the project avoids launching its token in the United States shows a deep understanding of potential legal hurdles. Given the scrutiny from UK and EU regulators, as well as the concerns voiced by industry insiders, the path ahead for Worldcoin is complex. The delicate balance between innovative digital identity solutions and individual rights is likely to determine the project’s fate in an ever-changing landscape of data and privacy regulations.
This week, Crypto Biz reviews Worldcoin expansion plans, GameStop exit from crypto, MicroStrategy quarterly results, and Nomura crypto license in Dubai.
Worldcoin will allow governments and companies to use an identity system
Worldcoin plans to expand its operations to allow governments and businesses to use iris scanning and identity verification technology to register users. According to developer Worldcoin Tools For Humanity, the company is on a mission to “create the largest financial and identity community” by allowing third parties to use its iris scanning technology. Worldcoin wants companies to pay to use a digital identity solution if they want to implement localized systems without collecting personal data.
GameStop will stop supporting its cryptocurrency wallets, citing “regulatory uncertainty”.
Game retailer GameStop has announced plans to withdraw its digital wallets from the market starting in November, citing “regulatory uncertainty in the crypto space.” Wallets launched in May 2022 allow users to manage non-fungible cryptocurrencies and tokens. GameStop advised users to secure access to secret keys by October 1st. It is not clear what aspects of “regulatory uncertainty” the company had in mind. GameStop is based in the United States, where lawmakers and regulators are taking controversial approaches to cryptocurrency and Blockchain technology.
MicroStrategy returns to profit and now owns $4.4 billion worth of bitcoin
MicroStrategy — one of the largest corporate holders of bitcoin (BTC) in the US — returned to profitability in the second quarter as the price of bitcoin soared. The company reported a net profit of $22.2 million, a huge reversal from a net loss of $1.1 billion in 2022. Total revenue was generally unchanged at $120.4 million. The company also plans to raise up to $750 million through a new share sale and says it could use the proceeds to buy more bitcoin to get ahead of the upcoming halving. The company currently owns 152,800 bitcoins, worth about $4.5 billion at current prices. He added 12,333 bitcoins in the second quarter and another 467 in July.
In July, @MicroStrategy purchased an additional 467 BTC for $14.4 million and now owns 152,800 BTC. Join us at 5:00 pm ET as we discuss Q2 2023 financial results and answer questions about the outlook #Business analytics And #Bitcoin. $MSTR https://t.co/SCHeBJ80TH
—Michael Saylor⚡️ (@saylor) August 1, 2023
Laser Digital, Nomura’s crypto arm, receives license from Dubai VARA
Japanese giant Nomura has received a license from the Dubai Virtual Assets Regulatory Authority (VARA) for its subsidiary Laser Digital Middle East. The license will allow to offer brokerage and investment services, as well as virtual asset management in the emirate. In addition, the license allows the company to conduct trading and asset management operations in the coming months, including over-the-counter services and “a range of products and solutions for investing in digital assets.”
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