Crypto startup Worldcoin to pay users for iris scans

Sam Altman, the chief executive of the nonprofit OpenAI and former head of the venture fund Y Combinator, has launched a new startup, Worldcoin. It collects users’ biometric data, paying for it with its own cryptocurrency, according to Bloomberg.

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Altman told the publication that he had been nurturing the Worldcoin idea since 2019. The startup recently attracted $25 million in funding. It is backed by Andreessen Horowitz, Coinbase Ventures, Day One Ventures and LinkedIn founder Reid Hoffman.

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The head of OpenAI is one of Worldcoin’s early investors, but does not participate in the startup’s day-to-day operations, serving as an adviser. The company is led by Alex Blania, who is listed as a co-founder alongside Altman and Max Novendstern.

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Altman has long been a proponent of the concept of universal basic income. In 2016, under his leadership, Y Combinator launched a research project aimed at testing this idea.

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“I am very interested in things like unconditional basic income, what will happen to global wealth redistribution and how we can improve this process. Is there a way to use technology to achieve this on a global scale?”, — he said.

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According to the publication, Worldcoin has developed a spherical device for scanning the iris. It creates a unique digital code for each user, after which it deletes the image with no possibility of restoration.

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By submitting biometric data, a person receives payments in the project’s eponymous cryptocurrency. According to Blania, this approach will prevent cheating the system.

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Worldcoin is still preparing for launch. The startup’s headquarters will be located in San Francisco — its employees currently work in various countries around the world. However, this has not prevented the company from beginning testing of the project.

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The digital currency is not yet ready for distribution, and the production of each scanner costs $5,000. There are currently fewer than 20 prototypes in circulation worldwide. Volunteers who participated in the trials are offered payments in Bitcoin. Over time, the cost of devices will fall.

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In March 2021, Altman said that in the next ten years AI will create enough wealth to pay every American $13,500 a year.

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