We have been exploring how blockchain can integrate into a world where AI is rapidly proliferating, with "Proof-of-human" being a prominent area.
In a future where AI agents and AI-generated content become increasingly prevalent, distinguishing between humans and robots will become an urgent necessity. In many scenarios, we might accept or even prefer interacting with robots. However, in critical areas such as advertising, dating, or government services, authenticating unique human identities becomes particularly crucial. Using a permissionless blockchain to verify online "human-ness" in a global and censorship-resistant manner is undoubtedly one of the best options.
Worldcoin is a blockchain protocol that builds a privacy-preserving global identity and financial network through the "Proof-of-human" concept. "Proof-of-human" means proving that a person is both human and unique. Worldcoin verifies users as unique individuals through iris scanning with its biometric device "World Orb" and issues a World ID to each user on its blockchain Worldchain. Developed by Tools For Humanity (TFH), this technology is being promoted globally. The protocol's native token WLD is designed as a global internet currency and used for protocol governance.
OpenAI's CEO Sam Altman is also a co-founder of Worldcoin. His motivation for creating Worldcoin is to maintain human uniqueness and centrality in an internet world filled with AI-driven content. If widely adopted, Worldcoin will provide a scalable and reliable global solution for distinguishing humans from AI while protecting user privacy. This capability has far-reaching implications, not only expanding economic opportunities but also promoting global democratic processes.
Since investing last year, we have had the opportunity to meet with Sam Altman, Tools For Humanity CEO Alex Blania, and team members. Worldcoin held its latest public event on April 30th, providing investors and industry professionals with an in-depth introduction to its product roadmap and growth strategy. Based on this, we believe it is an excellent opportunity to share our investment logic and look forward to exciting upcoming developments.
Investment Logic Overview
We believe that Worldcoin's "Proof-of-human" solution will become critical infrastructure in a future where humans and AI coexist. Our investment logic is primarily based on the following reasons:
1. Proof-of-human as a Key Tool: With the proliferation of autonomous AI agents and AI-generated content, verifying unique human identities is crucial for commercial and government applications. In extreme scenarios where AI-driven productivity might replace human labor, governments may need to implement Universal Basic Income (UBI) programs, and "Proof-of-human" will become indispensable.
2. Superior Verification Solution: Worldcoin's biometric solution combined with blockchain technology surpasses existing government and private identity verification systems by crossing judicial boundaries and being censorship-resistant.
3. Early Growth Indicators: Since its establishment less than two years ago, the Worldcoin protocol has already authenticated over 12 million unique individuals. Worldchain adoption also shows strong growth, with approximately 45,000 new wallets added daily.
4. Experienced Leadership: Worldcoin greatly benefits from the involvement of OpenAI founder Sam Altman. Altman's global influence and reputation are powerful tools for establishing trust with international government institutions and facilitating strategic cooperation.
Worldcoin's vision is not just technological innovation but a profound reflection on future social structures. At the intersection of AI and blockchain, it may become a key bridge connecting humans and technology.
World ID Application Scenarios and Potential
We believe "Proof-of-human" is crucial for many application scenarios, and World ID may have significant potential in scaled commercial applications. Particularly in advertising and government services, World ID could bring substantial value. Considering the size of these end markets - advertising is a trillion-dollar market, and government services account for 25% of US GDP - even adding a small amount of value through a unique human identity solution represents a massive growth opportunity for Worldcoin.
In the short term, Worldcoin has identified gaming, dating, and social networks as three core application scenarios, significantly enhancing user experience by distinguishing unique humans from robots. The protocol has already established partnerships in these areas:
・Gaming Domain: Razer is collaborating with Worldcoin to launch Razer ID to verify real player identities and enhance competitive gaming fairness. Razer ID will make its debut in the game 'Tokyo Beast' in the second quarter of 2025.
・Dating Domain: Worldcoin recently announced a partnership with global online dating leader Match Group, allowing users to verify profiles through World ID. This aims to reduce robots and fake accounts, improving user safety and trust.
・Social Domain: Worldcoin launched World Chat in the World App, helping verified individuals connect and communicate safely. Worldcoin is currently negotiating collaborations with several major social media platforms.
・Advertising Domain: Hakuhodo, Japan's second-largest marketing agency, plans to use World ID to build an anti-fraud advertising network, aiming to eliminate robot-driven advertising fraud.
Worldcoin's Mini App ecosystem plays a crucial role in unlocking new possibilities and application scenarios for World ID. Currently, there are over 300 Mini Apps on the World App, all of which can leverage World ID and the World App wallet to facilitate creative experiments and proof of concepts. Although the potential for future application scenarios has not been fully developed, early experiments show promising prospects.
· Kalshi: A prediction market Mini App that allows certified humans to bet on real-world events. As more verified users participate, the platform's credibility increases, creating deeper and more diverse markets, helping the public better understand popular perspectives.
· Aqua: This Mini App uses World ID to measure online interactions of verified humans, ensuring content creators are compensated based on real user interactions rather than bot activities.
· Worldle: A Wordle competition Mini App where certified humans can bet and compete with each other.
World Chain itself is built in a way that provides unique advantages for verified humans. Gas fees for verified humans are subsidized by fees collected from non-verified humans (i.e., bots), ensuring humans benefit from increased commercial activities by chain agents. The rest of the translation follows the same principle, maintaining the original structure and translating all text except for the content within <> tags, while preserving specific terms like Worldcoin, DeFi, etc.Of course, there is still a long way to go from the current state to realizing Worldcoin's long-term vision. Questions remain about whether the protocol can scale quickly enough, the effectiveness of its growth incentive mechanism, and the reflexive impact of its volatile cryptocurrency. Moreover, Worldcoin is not the only institution aware of the critical foundation of "human identity", as most large tech companies are also developing their own identity solutions. Although decentralized and censorship-resistant solutions are theoretically superior, this does not mean they will necessarily prevail in practice.
With the proliferation of artificial intelligence, people are increasingly recognizing the importance of Worldcoin's mission to build a powerful and secure identity verification solution, which is worth striving for. The Wall Street Journal and Time magazine have recently published feature stories about Worldcoin, emphasizing its crucial role in the context of increasingly prevalent and indistinguishable AI agents, especially in payment and social network domains. Blackrock reiterated the strategic importance of "human identity verification" in its annual shareholder letter, particularly against the backdrop of growing on-chain economics and asset tokenization.
Although Worldcoin is still in its early stages of development, there is no doubt that it is led by an excellent management team with Sam Altman as chairman of the board. If successful, its "Big Hairy Audacious Goal" (BHAG) could bring potential growth by orders of magnitude. Looking ahead, we look forward to Worldcoin's continued progress in geographical expansion kits, strategic partnerships, and the robust growth of its Mini App ecosystem. As investors in this protocol, we are incredibly excited and honored.
