Central Storage Kills Decentralization. Worldcoin Case

The Bavarian Data Protection Authority (BayLDA) has ordered the World Foundation (digital identity project World) to delete certain biometric data.

For those unfamiliar: World verifies digital identity by scanning the iris. Users who provide an iris scan receive a World ID, which:

1. Proves the individual is both human and unique.
2. Uses Zero-Knowledge Proof to ensure complete data privacy.

This system could solve issues like state corruption in identity verification. In theory, it could make government involvement in identity obsolete if the data were stored on a decentralized blockchain. Given that World has its own cryptocurrency, Worldcoin (WLD), this approach seemed natural. But instead, World Foundation stores hashed versions of biometric data (like IrisCode) on their centralized servers.

This likely aimed to comply with data protection laws that allow users to demand data deletion - something impossible on a blockchain. But centralizing storage undermines the whole idea. BayLDA ordered data deletion, and those records will likely be erased. Without them, World ID loses its purpose.

World Foundation may find a solution. The simplest fix is to stop storing data on their servers. Users could independently upload their identity proofs to the blockchain, eliminating the need for intermediaries. This way, the WLD financial system tied to World ID would regain its meaning.

Meanwhile, you can exchange WLD at the best rates on rabbit.io.