An inside look at Worldcoin’s “Orb,” an eye-catching biometric device that turns iris scans into a cryptographic code. [Worldcoin]
 | EYES OF THE WORLD |
A closer look at Worldcoin, Sam Altman’s eyeball scanning crypto project
In 2023, Sam Altman has become the public face of ChatGPT and the latest generation of artificial intelligence in his role as CEO of OpenAI. But before the meteoric rise of the generative AI tool, Altman had also planted the seeds for Worldcoin, a crypto project that aims to provide a universal currency and a new standard for digital identity and privacy, in part by … scanning people’s eyes to confirm their identities.
Let’s take a closer look at how Altman’s initiative — which just raised $115 million last week amid a bear market for VC funding of crypto projects — works, as well as some of the questions raised about Worldcoin's efforts.
What is Worldcoin?
Founded in 2019 by Tools for Humanity, Worldcoin is a crypto-focused project with a three-part goal of creating universal online IDs (World ID), a global cryptocurrency (WLD), and a self-custodial wallet app (World App) that enables payments using WLD, stablecoins, and traditional fiat currencies. It was co-founded by Altman and Alex Blania, who serves as Tools for Humanity’s CEO.
Worldcoin’s lofty mission entails freely distributing WLD as a form of universal basic income to everyone “just for being a unique individual,” and to establish unique digital identities to prove “humanness in an online world populated with increasingly advanced artificial intelligence.”
The company, which is still in beta, says it has so far onboarded nearly two million users across five continents, however, U.S. residents are not currently able to receive the Worldcoin token. Its World App launched in more than 80 countries in early May.
How does Worldcoin work, and will it really scan people’s eyes?
It’s possible to use Worldcoin without scanning your eyes, but in order to claim a free share of Worldcoin tokens, an individual has to verify their identity with a five-pound, chrome imaging device called The Orb, which scans users’ irises in order to create a numerical code that confirms “unique personhood.”
Worldcoin explains their privacy measures (encryption, image deletion) in detail, and says that it “does not use your iris to identify who you are, only to verify that you’re unique.”
How will Worldcoin use its new $115 million funding round?
The latest capital raise will fund product expansion and also go toward bot detection, as well as an alternative to the universally despised, click-on-the-traffic-lights CAPTCHA test — both efforts to better differentiate between humans and AI on the internet. The series C was led by Blockchain Capital, and included firms such as a16z and Bain Capital Crypto. (Coinbase Ventures participated in a previous funding round in 2021.)
What has been the response to the project?
When Worldcoin was announced in 2021, the project received some criticism from privacy advocates such as NSA whistleblower Edward Snowden, who voiced alarm about how the project planned to handle its biometric information. (Altman acknowledged in response that he had “definitely underestimated the visceral reaction to using biometrics for identity verification.”) And in April of 2022, the MIT Technology Review detailed what it claimed were serious shortcomings in Worldcoin’s privacy and marketing practices. (Worldcoin addresses some common questions about its approach to data privacy and security on its website.)
Last week, Spencer Bogart, a general partner at Blockchain Capital, called some of the critiques of Worldcoin “wildly off the mark” in a blog post about the project. “What at first appeared to be a dystopian attempt to create a global currency … was actually something else altogether: an entirely privacy preserving solution to an increasingly pervasive problem” of distinguishing between humans and machines on the internet, Bogart said.
Why it matters… For many in the crypto community, ownership of digital data and privacy are fundamental to the decentralization that crypto enables. And while Worldcoin’s method to authenticate and preserve digital identities has been headline-making, its underlying technologies (like zero-knowledge proofs and Merkle trees), may power alternative ways to own your own personal data across the internet and verify your ID in an age of rapidly advancing AI. As Altman stated on Twitter back in 2021, “no matter what you think about Worldcoin,” some of its ideas are “likely important to the future of privacy.”
1 | Amazon is reportedly exploring the idea of offering affordable or free mobile phone service to its Prime subscribers in the U.S. Talks are underway with Verizon, T-Mobile, Dish Network, and AT&T, as reported by Bloomberg, though T-Mobile and Amazon have denied the report. More: - Amazon aims to provide wireless plans for $10 per month or less to its members, sources told Bloomberg.
- The company could become a reseller or MVNO, allowing it to set its own pricing structure.
- Earlier reports suggested that Dish was considering offering wireless plans through Amazon.
- Following the news, AT&T, Verizon, and T-Mobile saw a 4% or greater decrease in morning trading, while Amazon's stock rose by around 2%.
- An Amazon spokesperson said the company is constantly exploring new benefits for Prime members but has no current plans for wireless services.
Zoom out: - Amazon's possible entry into mobile phone services could boost loyalty among its Prime members as it faces increased competition from Walmart+.
- Likewise, the move could address an apparent slowdown in Prime subscriptions. Consumer Intelligence Research Partners estimates that Prime had 168 million subscribers at the end of 2022, down from 170 million the year before, which is the first time ever that the service didn't see annual growth.
|     |
|
2 | The news: Apple's App Store facilitated an estimated $1.1 trillion in developer billings and sales in 2022, up 29% from the year before, according to an Apple-sponsored study conducted by Analysis Group. The figures include money from in-app advertising, apps and subscriptions, and physical goods and services, with the latter covering mobile commerce like retail, ride-hailing, and travel, along with digital payments conducted through the App Store. What the numbers say: The study emphasizes that more than 90% of billings and sales went to developers alone, with Apple not taking a commission of 15% to 30%. Of the $1.1 trillion total, in-app advertising contributed $109B, digital goods and services accounted for $104B, and $910B came from sales of physical goods and services. Since the App Store launched in 2008, iOS developers have also earned a total of $320B, up from the previously reported $260B in 2021. Apple also highlighted that small developers saw 71% earnings growth between 2020 and 2022, surpassing larger app developers. Quotable: “As this report shows, the App Store is a vibrant, innovative marketplace where opportunity thrives,” Chief Executive Officer Tim Cook said in a statement. Why it matters: While the study downplays the notable high costs of doing business on the platform, it does break down the data of Apple's ecosystem and shows the continued growth of the App Store. The figures have grown significantly since the marketplace facilitated $519B in commerce in 2019, with $61B coming from digital goods and services. The study emphasizes the popular and expanding app categories, specifically noting a significant rise in travel sales (84%) and ride-hailing apps (45%). 
|
|
 |
| | Growth Wanes at Instacart, Gopuff | By Cory Weinberg | Grocery upstarts Instacart and Gopuff haven’t been able to deliver two things at once this year: growth and profits. Privately held Instacart disappointed some investors last week by reporting the number of grocery orders it facilitated declined by 2% in the first quarter from the same period last year, and was flat compared to last year’s fourth quarter, people familiar with the matter said. The company’s gross transaction volume—the amount of money customers spend on grocery orders—inched up by just 3% from the same period last year. |
|
|
|
|
THE AI AGE E-COMMERCE AI
By Chris Stokel-Walker
When Andy Wilson’s company received its first successful client referral through ChatGPT, he was shaken to his core.
EXCLUSIVE STARTUPS CRYPTO
By Aidan Ryan
In November 2021, just as crypto prices were hitting all-time highs, MoonPay—a crypto payments startup that celebrities including Jimmy Fallon and Paris Hilton had praised for its non-fungible token “concierge” service— announced it had completed its first ever outside fundraising: an eye-popping $555 million round at a $3.4 billion valuation from investors including Tiger Global Management and Coatue Management.
THE BIG READ MARKETS FINANCE
By Michelle Celarier
In the spring of 2022, the irascible Wall Street short seller Marc Cohodes was in a particularly foul mood.
SEMICONDUCTORS AI
By Anissa Gardizy
Nvidia’s business of selling chips for artificial intelligence is going gangbusters, but the company faces a looming problem.
EXCLUSIVE APPLE AR/VR
By Wayne Ma
If Apple unveils its long-awaited mixed-reality headset next week as expected, it will represent the company’s riskiest gamble on a new product since the iPhone.
SOCIAL STUDIES CULTURE
By Amanda Florian
On June 29, 2020, as thunderstorms swept Mumbai and daily Covid-19 cases in India surged by almost 20,000, millions of people began experiencing a flood of network errors on their mobile devices.
Amazon agrees to settle children’s-privacy charges for $25M as regulators sleuth out data misuse | Servers get served… This week Amazon agreed to settle FTC charges that it illegally stored children’s data (like voice recordings and locations) gathered from Alexa devices. The commission said that 30K Amazon employees had access to Alexa transcripts in 2018 and 2019, and that children’s data was used to train Alexa to better understand kids' lingo. That would be a violation of the Children's Online Privacy Protection Act, or COPPA. Amazon denied it broke the law. Pay up: If the settlement is approved, Amazon will pay a $25M fine and be required to delete any saved children’s data. Separately: Amazon agreed to pay $5.8M in refunds to Ring customers to settle FTC allegations that employees had illegally viewed Ring footage. Amazon said it had fixed the issue before the commission looked into it.
The kids aren’t alright… While $25M is a drop in the bucket for Amazon, it’s part of a bigger regulatory push to crack down on misuse of kids’ data by tech giants. Last year, “Fortnite” maker Epic Games settled with the FTC for $520M, partly over claims of unlawfully collecting children’s info, and Google agreed to pay a $170M penalty for YouTube channels harvesting kids’ data. Thinking ahead: Several recent bills aim to bar platforms from targeting ads to under-13-year-olds, mostly by setting and enforcing age restrictions. Red flag: The bills seek to protect kids’ mental health, not just their data. But experts warn that age-verification processes could require more info to be shared with platforms.
|  | THE TAKEAWAY |
| It’s supposed to be user data, not used data… Big Tech’s once unfettered access to sensitive info is being reined in. The EU and California have passed sweeping data-privacy laws that restrict digital platforms’ ability to gather data without users’ permission. Four more US states will start enforcing similar laws this year. | |
|
|
AMC shutters its streaming service as theaters push blockbuster-size plush-grades | Heartbreak not feelin' so good… AMC said yesterday that it would close the curtain on its streaming service. Launched in 2019, AMC Theatres on Demand let users rent or buy movies to watch at home. The platform likely came in handy during the pandemic when theaters were closed, but now AMC says it's focused on "making movies better by enhancing the theatrical experience." If you can’t join ’em… beat ’em. US movie chains are charging ahead to deck out the in-theater experience, since butts-in-seats still bring in more $$ than couchbound streams. In addition to dropping top dollar on new IMAX screens (cost: $1M, not including install), theaters are splurging on plush-grades like heated seats that move with on-screen action, fans who blast viewers during chase scenes, and on-call dinner servers. In February, AMC even rolled out tiered seat pricing (picture: paying extra for center row). The premiumization push seems to be paying off: Seat-side sushi: Theaters are charging up to 65% more for tickets in fancified theaters, easily topping $20 apiece. More from less: Upgraded screens are expected to bring in 17% of theaters’ revenue this year, up from 9% in 2019. Some pain, some gain: AMC’s losses are shrinking ($178M last quarter versus $266M a year earlier).
| | THE TAKEAWAY |
| Experiences command a premium… After the streaming surge and lockdowns knocked theaters on their heels, chains are trying a luxury-driven comeback. The US box office hit $7.5B last year (up from $2.3B in 2020), and could top $9B this year. Meanwhile, studios like Warner Bros. and Disney have cooled on plans to release films straight to streaming as cineplexes draw more customers off the couch and into heated, reclining theater thrones. | |
|
|
|  Spicy… The DOJ said it might drop some of the charges against Sam Bankman-Fried if the Bahamian gov’t says they violate the terms of his extradition to the US. The FTX founder is awaiting trial over his role in the exchange’s implosion.
 Flashy… Charles Schwab and Nomura are among the Wall Street titans backing or building their own crypto companies. In a post-FTX world, finance institutions are hoping that customers will trust them more than they do crypto-native firms.
 Coins… Tether (aka: USDT) now has a record $83B+ market cap. Tether’s share of the stablecoin market grew this year after regulators ordered its competitor to stop minting BUSD (a Binance-branded stablecoin).
| |
|
|
What else we're Snackin' | Loans: The Senate voted to repeal President Biden’s student-loan-forgiveness plan to cancel up to $20K in debt. The White House is expected to veto, but the plan’s on hold anyway as SCOTUS debates it. Metout: Meta's threatening to pull news from its social apps in California if the state passes a law that would require tech platforms to compensate publishers. A similar federal bill is sitting with Congress. Play: Chewy shares popped 23% after it posted a surprise profit as Americans continued to splurge on their furry friends. Chewy’s Autoship sales (think: monthly kibble delivery) hit a record. Check: As college-tuition costs skyrocket, more high-school grads are skipping bachelor’s degrees to go straight to work in industries like hospitality, where wage growth has outpaced other sectors. Hold: Nordstrom topped expectations, fueled by strength at its discount Rack stores, but total sales fell 12% as shoppers curbed discretionary splurges. Macy’s slashed its annual outlook by nearly $1B.
|
|
|
No comments:
Post a Comment