Local instead of cloud

Crypto project Worldcoin changes data protection concept

Worldcoin users can register via iris scans using such spheres.(Bild: AP)

The cryptocurrency project Worldcoin by OpenAI co-founder Sam Altman will no longer store its customers' biometric data in the cloud or on company servers. This was announced by the German operating company Tools for Humanity (TFH) on Friday. Instead, Worldcoin is introducing the concept of "personal data custody", which means that data will only be stored on smartphones in encrypted form.

The Worldcoin project offers a forgery-proof digital proof of identity ("World ID") that can be used to identify oneself as a human being online - in contrast to AI-generated software robots. When setting up the "World ID", interested parties must have their eyes scanned in special registration centers. So far, more than 4.5 million people in 35 countries have taken advantage of the opportunity to have their iris scanned by a special camera ("Orb").

The "World ID" is linked to the cryptocurrency "Worldcoin" (WLD), which is distributed to regular users in small amounts. The WLD token is also traded on certain crypto exchanges and can be exchanged for currencies such as euros or dollars.

The new concept means that all information (images, metadata and derived data) generated in an "orb" and used in the verification of the "World ID" is stored on the user's device, explained Erlangen-based TFH.

"Far beyond legal requirements"
Lawyer Tim Wybitul from the law firm Latham & Watkins, which advises Worldcoin, explained that the company is not only complying with legal data protection requirements. "Rather, it is implementing progressive strategies, some of which go far beyond the legal requirements." In addition, Worldcoin pursues the approach of recognizing users only as people without collecting extensive personal information. This enables a high level of data protection and sets new standards in privacy protection.

Although TFH does not collect any further personal data such as name, birthday and address during the iris scan for the "World ID", the concept was met with great suspicion by politicians and authorities. The Bavarian State Office for Data Protection Supervision initiated a basic review of the project last summer. The results are to be presented in the coming weeks. Most recently, the Spanish data protection authority Agencia Española de Protección de Datos prohibited the operating company TFH from continuing to collect data.