In a recent announcement, Tools for Humanity, the company behind Worldcoin, unveiled their plan to introduce World Chain. This open-source Ethereum layer-2 blockchain is set to make its debut in mid-2024.
Its primary goal is to revolutionize human authentication by integrating with the Worldcoin protocol.
Worldcoin’s Vision for World Chain and World ID
Worldcoin aims to establish itself as the world’s largest identity and financial public network. Utilizing iris scanning technology through smartphones or specialized devices called Orbs, Worldcoin converts biometric images into encrypted numerical codes. These codes, combined with algorithms, verify individuals’ unique human identities. The World ID app acts as a digital passport, enabling users to authenticate themselves across web, mobile, and decentralized applications.
Tools for Humanity deems the upcoming blockchain, World Chain, essential for transitioning from existing networks to a dedicated infrastructure. According to the protocol’s website, over 5 million people from 160 countries have signed up, with verified wallets facilitating 49 million transactions. With the launch of World Chain, Worldcoin aims to enhance scalability, provide a dedicated network for its user base, and attract more users and participants to the project’s ecosystem.
The proliferation of automated transactions, expected to comprise 80% of all blockchain activity, presents challenges such as network congestion. World ID aims to mitigate this by ensuring an inclusive and secure ecosystem. In their announcement, Worldcoin outlines their immediate goal to increase the L2 block gas limit significantly. They emphasize conducting this process safely, supported by research into worst-case performance scenarios.
Integration of World Chain with Worldcoin
While Worldcoin transactions currently operate on the Optimism OP Mainnet, the integration with World Chain is expected to enable seamless deployment across various blockchain networks.
World Chain will retain Ethereum as its native token to ensure compatibility with the Ethereum ecosystem. However, Worldcoin token holders will have the ability to use their tokens to pay transaction fees.
Worldcoin grants, distributed biweekly to verified individuals, will be instantly accessible for use within applications on the chain.
As the launch date approaches, industry observers eagerly anticipate the impact and reception of this new Ethereum layer-2 solution. Despite Worldcoin’s ambitious vision, market fluctuations have affected the token’s price and market cap.
Daily chart shows WLD’s price trending downwards. Source: WLDUSD on TradingView.com
As of the latest data, the native token of the Worldcoin project, WLD, is trading at $4.86, reflecting a significant price decline of over 45% in the past 30 days, with a further 25% drop in the past seven days.
According to CoinGecko data, WLD’s market capitalization has decreased from its peak of $1.4 billion on March 26 to its current value of $950 million.
However, there has been a notable increase in trading volume since the announcement, surging by 6.40%. Additionally, the token has experienced a slight uptick of 3% following the disclosure.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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