We're exploring the new Worldcoin's cryptocurrency wallet that provides feeless transactions for all authenticated users. The verification process utilizes the decentralized World ID protocol, a feature unveiled by Sam Altman in March 2023.
How World ID operates
The protocol verifies a user's phone number or iris through the World App. Once the details are authenticated, the results are locally stored using a zero-knowledge proof mechanism. This way, users validate their identities, obtaining a digital certification equivalent without sharing any personal information.
Should the need arise, all keys (World ID and wallet) can be effortlessly removed as they're stored locally and encrypted on the user's personal cloud account. It's noteworthy that the application strongly advocates enabling backup, frequently alerting users about potential risks and limiting several functionalities.
Opting for World ID verification isn't compulsory for World App usage. The team responded to criticisms from human rights defenders about personal data collection, especially regarding iris scans, and moved to voluntary verification with weekly rewards in the form of the project's tokens. Once the beta testing phase concludes, these rewards will become monthly.
The Worldcoin Wallet
This wallet was launched as an integral part of the World App. Currently, it's somewhat restrictive, operating exclusively on the Optimism blockchain and supporting only five tokens, including a few stablecoins. With the presence of a separate dollar account, minimized transaction configurations, and mentions of deposits and withdrawals via Moonpay, the wallet seems to have a hybrid structure, straddling the line between custodial and non-custodial solutions. Nevertheless, it allows users to transfer, exchange, and liquidate tokens to a bank account via its partners.
The app can be downloaded from Google Play or the App Store, and the covering of transaction fees is made possible by account abstraction and the Proof of Personhood mechanism.
App popularity
Reflecting on the wallet's release, the team indicated their goal was to develop an easy-to-use option for individuals unfamiliar with cryptocurrencies. Going by the numbers, it seems they were successful: from the introduction of the first version of the World App (prior to the formal launch), registration has exceeded 1.5 million, with over 500,000 active wallets on a monthly basis. With broader access, these figures are expected to surge significantly.
User growth each month. Source: Official Worldcoin Blog.
