Welcome to ‘Crypto Summer’
Sam Altman’s Worldcoin Is The Next Level of Web3
There aren’t many Superstar Tech and Media CEOs at the moment. But Sam Altman, the CEO of ChatGPT parent OpenAI, certainly fits the bill.
He’s already been hailed as a visionary for being the executive most closely identified with generative artificial intelligence. But you might not have heard about his latest project, Worldcoin. While ChatGPT is truly transformational in terms of creativity and content, Worldcoin’s impact on finance and privacy as well as the business of tech could have an equivalent societal impact.
It’s a cryptocurrency-based project initiated by Berlin-based Tools for Humanity, a software and hardware company focused on using blockchain to improve the global financial system.
Approve the Human, Deny the Bot
Worldcoin, which launched last Monday, is breathtaking in its varied ambitions. The company claims the ability to verify the authenticity of users, combat fraud, and enable “global democratic processes.”
Worldcoin's core offering is the World ID, which requires customers to undergo an in-person iris scan using the project's innovative “orb.” This silver sphere, about the size of a bowling ball, scans a person’s iris to create a unique identifier — and with it, be able to prove that the individual is a genuine human and not an AI bot.
The World ID, stored on blockchains to preserve privacy, serves as a powerful tool to differentiate real people from AI bots in the age of generative AI chatbots like ChatGPT, ensuring more secure online interactions.
Web3’s Global Moment
Worldcoin is poised to fully open web3 experiences, which are predicated on being decentralized and authentic. It could also portend a thaw in the “Crypto Winter” that blew across tech late last year. At the time, the crypto marketplace FTX imploded and its founder Sam Bankman-Fried was accused of securities fraud.
The resulting headlines about crypto scandals degraded the value of NFTs, whose value was seen as a hot investment rather than a way to build loyalty by guaranteeing authenticity between devoted fans and brands.
A genuine shift in the marketplace appeared to be gaining momentum even before Altman unveiled Worldcoin. In June, Andreessen Horowitz opened its first office outside of the U.S. in London with a particular focus on web3. The venture capital firm sees the UK as a potential global capital for blockchain, crypto, and other digital currencies.
Meanwhile, Paris fashion house Louis Vuitton has been vying for the role of web3 pioneer by creating an NFT for its iconic trunk. It also sponsored one of the most groundbreaking out of home campaigns by displaying giant immersive displays from Tokyo to Los Angeles.
Escaping the Hype Cycle
These examples are a reminder of how resurgent emerging tech — and a practical idea — can be. While crypto and NFTs were viewed as long past their position in the Hype Cycle, brands and investors are ready to embrace these tools once more. That Europe is being viewed as a center for activity is also instructive.
When the European Union’s GDPR privacy rules were established in 2016, it looked like the death knell for advanced tech on the continent. But utility is the value that provides technologies with a way of escaping the Hype Cycle’s dreaded “Trough of Disillusionment.”
Still, it helps to have an advocate as admired as Sam Altman is. But can Worldcoin surmount the Hype — or will the Cycle come to claim his World ID? I’m betting that the warmth of this burgeoning crypto moment will be longer lasting.