The recent WorldCoin launch brings the world’s eyes to the crypto space. Why is that so? Well, for starters, the co-founder and CEO of WorldCoin is Samuel Altman. He’s the CEO of OpenAI too. Yes, the company behind ChatGPT. Naturally, his crypto project will attract a ton of attention.
But, have you thought of what would happen if WorldCoin was hacked? Today, we’ll be exploring the consequences of such an event. Before we begin, let us recap on what this project is all about.
What Is WorldCoin?
Simply put, WorldCoin aims to make global finance inclusive for everyone. It plans to make digital assets accessible to anyone from anywhere. With its network in place, WorldCoin serves a few key use cases. These include:
- Facilitating global transactions, retail payments and micropayments,
- Enabling humanitarian aid and charity, and;
- Presenting opportunities for investment and diversification.
The Worldcoin project was created to help build an identity & financial network connecting billions of people in the Age of AI. pic.twitter.com/7XbwCHkt2P
— Worldcoin (@worldcoin) July 29, 2023
To achieve this, WorldCoin uses a feature called iris scanning. It uses scans of a person’s eyes to, you guessed it, prove their identities. This is part of WorldCoin’s World ID project. The use of iris scanning is termed as “Proof-of-Personhood”. Submit your iris scan, and you can get a small amount of WorldCoin’s native $WLD tokens.
What Would Happen if WorldCoin Was Hacked?
So, let’s say WorldCoin now holds a ton of iris scans from billions of people. It stores all these data within a centralized database. Now, what would happen if a hacker gains access to said database? Let’s explore the scenarios below.
If WorldCoin was hacked, a hacker would then gain access to many people’s iris scans. In turn, this means he can now access all the data you could with your iris. He could use your identity to commit fraud in your name. He could use your bank account to commit money laundering.
With your identity in his hands, a hacker can use it to scam others. He could use your proof of identity to convince your loved ones to send him money. He could also claim that you’re a victim of kidnapping. By proving your identity, your family would then send a ransom to him. Frankly, the scams that could be perpetuated from stolen iris scans are endless.
3) Identity Theft
Identity theft is a significant concern if WorldCoin is hacked. A hacker assuming your identity has a claim to your possessions. He could do anything on your behalf. This could range from selling your house to changing your email password. Both of which could be disastrous for your professional and personal life.
4) Breach of Privacy
Initially, the public did not like the idea of submitting their iris scans to WorldCoin. The government could use this data to track everything you do. Imagine if you need to scan your eyes to start a bank transfer. Or, to buy your medication online. Even to board the bus or to check in to a place. The government can access all of these through your iris scan.
If this is the end goal, then that’s a severe breach of privacy. Now imagine if WorldCoin was hacked. Then, hackers will have access to intimate information about yourself too. Now ain’t that a double whammy!
5. In addition to privacy issues, there are serious qualms regarding the security of Worldcoin's biometric data. In the event of a data breach, such sensitive information could be used maliciously for identity theft or fraudulent activities.
— Arman Abdul Rahman (@armanarahman) July 27, 2023
Above, we outline the dangers of WorldCoin losing our personal data to hackers. But, what if it was the blockchain that was compromised instead? What would that result in?
5) The Price of $WLD Would Dump
That goes without saying. When a chain is hacked, the hacker will usually siphon out large amounts of the native token. He will then attempt to sell it for as much stablecoins or fiat as much as possible. If WorldCoin is hacked, then the price of $WLD will surely plummet. Many of its investors will look to dump the token before the hacker does, or as early as possible. This cascading cycle will lead to lower and lower prices.
6) The Blockchain Would Halt
When a hacker manages to hack into a blockchain, the developers will act. They aren’t sitting ducks, you know! They will try to halt the blockchain first. This prevents the hacker from making any transactions, while the developers try to solve the issue. As a WorldCoin user, you won’t be able to send or receive your funds. You would not even know if your funds are safe! In extreme cases, developers could opt to reverse transactions. This goes against the principles of blockchain. Sometimes, tough decisions have to be made.
To conclude, we’ve shown you some scenarios if WorldCoin was hacked. We feel that with its technology, that’s unlikely to occur. But in crypto, nothing is 100% safe. We’ve learned our lessons ever since the creation of Bitcoin. That is – to never trust centralized parties.
With that, my iris scans will stay where it belongs. In my eyes.
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The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.