World Chain is the only way forward

The launch of World Chain can be seen as a necessary step in the development of the Worldcoin project, mainly based on the bottleneck it encountered in Optimism:

Network congestion and high transaction fees : As the Worldcoin user base grows rapidly, its activities on the Optimism mainnet have led to significant network congestion and high transaction fees. This not only affects the user experience, but also limits the further expansion of the project. World Chain can effectively solve these problems, improve transaction efficiency and reduce costs by providing a network designed specifically for the Worldcoin ecosystem.

Challenges of robot activities : A large number of automated transactions and robot activities have caused many problems in existing blockchain networks, including resource waste and network congestion. World Chain aims to create a more fair and efficient network environment by introducing World ID personality proof and giving priority to verified human transactions.

Scalability and sustainability : As the Worldcoin ecosystem continues to grow and user demand increases, a network that can support higher transaction volumes, faster transaction confirmation times, and better scalability is needed. World Chain is designed with these needs in mind, providing a sustainable development foundation for the Worldcoin ecosystem through a dedicated network and integration with Ethereum L2.

Open source and community governance : World Chain adheres to the spirit of open source and community governance, which is consistent with the core values ​​of the cryptocurrency and blockchain industries. By involving the community in the governance of the network, it can ensure that the development direction of the network is in line with the interests and needs of users.

Future Ecosystem Construction : World Chain is not just a solution to current problems, it also aims to provide a richer and more diverse application ecosystem for Worldcoin and its users. By focusing on decentralized financial and identity applications that are practical in daily life, World Chain is expected to attract more developers and users and drive the growth of the entire ecosystem.

World Chain was launched to address the challenges that Worldcoin encountered in Optimism, and to support its long-term vision and ecosystem expansion. By providing a more efficient, fair and scalable network, World Chain opens new development paths for Worldcoin and its users, ensuring that the project can continue to develop and achieve its goal of increasing global opportunity equality.

The technological revolution of biometrics

The significance of building with OP Stack

World Chain chose to use OP Stack for construction based on the comprehensive considerations of efficiency, cost-effectiveness, Ethereum compatibility, community support and security provided by Optimism.

Transaction throughput and cost-effectiveness : Optimism uses Optimistic Rollups technology, which can theoretically increase transaction speeds to thousands of transactions per second while reducing Gas fees by more than 80%.

Compatibility with Ethereum: OP Stack provides an environment that is fully compatible with EVM (Ethereum Virtual Machine), allowing existing smart contracts and DApps on Ethereum to be seamlessly migrated to Optimism.

Community and Ecosystem Support : The Optimism community includes thousands of developers, as well as numerous deployed projects and partners.

Security : Through Optimistic Rollups technology, although transactions are processed on L2, all transactions must ultimately be settled on the Ethereum main chain, inheriting the security of the Ethereum main chain.

These features together are the reason why World Chain chose OP Stack over other blockchain solutions.

Biometrics Reshape the Crypto World

Worldchain is creating a new era of human-centricity in the crypto space through its unique biometric technology and World ID system. This new blockchain platform not only aims to provide a global open network, but also focuses on ensuring that human users have priority over robots and automated scripts through a series of innovative measures. The following are the key aspects of Worldchain's reinvention in the crypto space through biometric technology:

Human-first network access and resource allocation

By leveraging World ID's proof of personhood, Worldchain ensures that verified human users are given priority in block space and transaction fees (GAS allowance). This design aims to reduce network congestion and resource waste caused by robots and automated scripts, and improve network efficiency and user experience.

Promote the popularity of decentralized finance and identity applications

Worldchain's deep integration with the Worldcoin protocol enables it to leverage the power of World ID, providing developers with a platform to reach millions of real users around the world. This not only accelerates the adoption of decentralized finance (DeFi) and identity-based applications, but also opens up new avenues for practical applications in daily life.

In summary, Worldchain promotes a new era of people-centeredness in the crypto space through its innovative biometric technology and human-centered design concept. This not only provides users with a fairer and more efficient network environment, but also opens the door for developers to the global user base, promoting the widespread adoption and development of crypto technology and applications.

Unique Advantages of World Chain

The unique advantages of World Chain lie in its human-centric design concept, the application of biometric technology, deep integration of the Worldcoin protocol, and emphasis on decentralized identity authentication and community governance. These features make World Chain not only a Layer-2 solution that improves transaction efficiency and reduces costs, but also an innovative platform that promotes the popularization of decentralized finance and identity authentication applications and enhances user privacy protection and security.

Strategies for dealing with network congestion

Current Network Challenges

Recently, the congestion problem of the Solana network has become a hot topic of discussion in the crypto market. Robot activity is the culprit, and it is also the main reason for congestion in other blockchain networks.

• High-frequency trading : Trading bots are often used to perform high-frequency trading, which means they can initiate a large number of trades in a very short period of time. When a large number of bots are active at the same time, these high-frequency trades can quickly fill up the block capacity and cause network congestion.
• The rise of DeFi : The rise of decentralized finance (DeFi) platforms and other smart contract-based applications has led to an increase in bot activity. Bots are used to automate complex strategies such as liquidity mining, arbitrage, or automated lending. These operations involve frequent interactions with smart contracts, increasing the volume of transactions on the network.
• Dust attack : In some cases, malicious actors may deliberately use robots to initiate a large number of meaningless transactions to cause network congestion. The purpose of this network congestion attack may be to affect the performance of a specific decentralized application, or to profit by increasing transaction fees when the network is busy. The problems encountered by the Solana network come from this.

The significance and strategy of prioritizing humans based on World ID

Role division based on World ID is a core concept in the Worldcoin ecosystem. It aims to verify the real identity of users through biometric technology, thereby providing customized services and permissions for different types of participants. The following are possible role divisions based on World ID:

• Verified human users: Users who have been verified by the World ID system and confirmed to be real humans enjoy priority access to network resources, such as priority block space and gas allowances on the World Chain. Transactions of these users will be processed first to improve efficiency and reduce costs.
• Unverified users: Users who have not been verified by the World ID system or choose not to be verified can access the network and use services, but do not enjoy the priority of verified users in resource allocation and transaction processing.

Through the role division of World ID, the Worldcoin ecosystem aims to establish a fairer blockchain network environment.

The World Chain strategy of giving priority to human transactions is to solve the congestion problem that is prevalent in the current blockchain network, while improving the availability and fairness of the network. The core of this strategy is to distinguish between human users and automated scripts (robots) through the World ID verification system, and provide a series of benefits to verified human users, including but not limited to priority block space and transaction fee allowances. The following is the significance and implementation method of this strategy:

Challenges and opportunities: anti-bot strategies and user growth

Negative Impacts of Anti-Bot Strategies

World Chain’s anti-bot strategy aims to improve network efficiency, protect the interests of human users, and reduce malicious robot activities, but this strategy may also bring some negative effects or challenges:

Technical and Execution Challenges

• False positives : When implementing anti-bot strategies, false positives may occur, where legitimate automated script or robot activity is incorrectly identified as malicious, thereby hindering these legitimate activities from being carried out.
• Bypass strategies : Malicious actors may develop more sophisticated bots to bypass authentication mechanisms, which could lead to an “arms race” to continually upgrade bot technology to combat the latest anti-bot measures.

Potential impact on innovation and efficiency

• Limit the use of automated tools : Automated tools and robots play an important role in many blockchain applications, such as automated trading, liquidity provision, and smart contract operations. Overly strict anti-robot policies may limit the use of these tools and affect the innovation and efficiency of blockchain technology.
• Increase user threshold : Requiring users to authenticate through World ID can improve the security of the network, but it may also increase the complexity of user operations and may be a high entry threshold for new users. \

Network governance and centralization risks

• Governance participation restrictions : Limiting governance rights and priority access to network resources to authenticated users may lead to reduced participation in network governance, especially on a global scale, where users in different regions may not be able to participate equally due to verification thresholds.
• Increased centralization risk : Relying on a specific identity authentication system (such as World ID) may increase the network's dependence on the centralized identity authentication system, which is contrary to the decentralized principle advocated by blockchain technology.

In summary, although World Chain’s anti-robot strategy takes into account the interests of improving the network environment and protecting human users from multiple aspects, it also needs to be carefully balanced during implementation to avoid possible negative impacts and ensure the openness, innovation and inclusiveness of the network.

Sacrificing short-term income

World Chain implements an anti-robot strategy that prioritizes transactions of human users verified by World ID. Although this strategy aims to build a fairer and more efficient network environment in the long run, it may indeed have an impact on the network's revenue in the short term. The following are several major aspects that demonstrate that this strategy may sacrifice short-term revenue:

Reduce transaction fee income

• Reduced transaction volume : By limiting or reducing bot trading, the total transaction volume on the network could decrease. This is because bots can generate a large number of trades, especially in high-frequency trading strategies, which can increase transaction fees when the network is congested, thereby increasing the network's revenue.
• Low fees for priority transactions : To incentivize human users to participate and complete World ID verification, World Chain may offer lower transaction fees or other incentives for these transactions, which directly reduces the fee income per transaction.

Impact on potential speculative activities

• Reducing market manipulation : Bots are often used in cryptocurrency markets to manipulate the market by creating false buying and selling pressure to influence prices. Restricting such bot activity could reduce this source of revenue.

Increased investment and development costs

• Increased initial costs : Developing and maintaining advanced counter-bot systems requires significant initial investment and ongoing operating costs. These costs may in the short term exceed the cost savings or direct revenue generated by implementing these systems.

Will long-termism ultimately win?

World Chain implements an anti-bot strategy, which may face some challenges and revenue sacrifices in the short term, but from a long-term perspective, this strategy has potential significant advantages. The following are the possible long-term benefits of adopting this strategy:

• Improve network quality and user experience : significantly reduce network congestion and increase transaction processing speed. Reduced congestion also means that users can enjoy lower transaction fees, making it more economical to participate in network activities.
• Enhanced security and trust: By identifying and limiting robot activities, the risk of malicious attacks on the network is reduced and the overall security of the network is enhanced.
• Promote fairness and inclusion: Protect the rights of human users: Ensure that human users can access and use network resources fairly and avoid being squeezed out by automated scripts and robots.
• Encouraging responsible use: Anti-bot policies encourage users and developers to use network resources responsibly, promoting the long-term health and sustainability of the network.

From a long-term perspective, World Chain's anti-robot strategy is not only a solution to current problems, but also an investment in future sustainable development. By improving network quality, enhancing security and trust, promoting fairness and inclusiveness, and strengthening network governance, this strategy is expected to bring World Chain a broader user base, a stronger ecosystem, and a more stable source of income. Ultimately, this will prove the value of long-termism in the blockchain field, ensuring that World Chain can stand out in a highly competitive market and achieve long-term success.

Regulatory challenges and data privacy

Data Collection Challenges

The Worldcoin project, and in particular its practice of collecting biometric data (such as iris scans) to verify user identities through its World ID system, faces a number of regulatory challenges stemming from growing concerns about personal privacy and the strengthening of data protection regulations around the world.

• Privacy regulations : Regulations such as the European Union’s General Data Protection Regulation (GDPR) place strict restrictions on the collection and processing of personal data. Worldcoin needs to ensure that its data collection and processing practices comply with these regulations.
• User consent: Obtaining explicit consent from users before collecting biometric data is critical. Worldcoin must ensure that users fully understand how their data will be collected, stored, and used.
• Data security: Protecting the collected sensitive data from unauthorized access or disclosure is another major challenge. Any data breach incident can lead to serious legal consequences and loss of reputation.

The ongoing blockade

The temporary blocking of Worldcoin by different countries reflects the concerns of various governments about emerging technologies and data collection practices. These concerns mainly include:

• Data privacy concerns : National regulators may be concerned that biometric data collected by Worldcoin could infringe on citizens’ privacy rights, especially if this data is processed and stored in a manner that is not fully transparent or compliant with local data protection regulations.
• Security issues : Security becomes a major concern for systems that store large amounts of sensitive biometric information. Any potential security breach could lead to illegal access or theft of data.
• Regulatory adaptability : Due to the global nature of the Worldcoin project, its operations must adapt to the legal and regulatory frameworks of different countries and regions. Regulatory differences between different countries may lead to blocking measures against the project in some regions.

Sam Altman's response

In response to data privacy and regulatory scrutiny, Worldcoin and its founder Sam Altman have taken the following steps:

• Increase transparency: Increase transparency about how user data is collected, used, and stored, including by publishing detailed privacy policies and data processing agreements.
• Encryption and Security: Advanced encryption technology and security measures are used to protect stored data and prevent unauthorized access and data leakage.
• Compliance Audits: Regular compliance audits are conducted to ensure that Worldcoin’s operations comply with data protection regulations in various countries and regions.

User empowerment and control: Ensure that users have adequate control over the use of their data, including providing clear consent options, data access and deletion rights.

• Active Communication and Cooperation: Actively communicate and cooperate with regulators to explain Worldcoin’s data collection and processing practices, demonstrate how it protects user privacy and complies with regulatory requirements.

Through these measures, Worldcoin aims to build trust with users and regulators, ensuring that its project can develop smoothly around the world while protecting user privacy and data security.

WLD Token: Market Performance and Social Impact

WLD Market Performance

One of the core ideas of Worldcoin is to explore the technology and economic model that can support Universal Basic Income. The WLD token is seen as the main utility of this social experiment. As long as users are located in a Worldcoin-permitted region and have fully verified their uniqueness on Orb, they can start applying for Worldcoin Grants and receive their free WLD tokens. Currently, WLD has no other practical use except governance and providing Worldcoin Grants to serious Word ID users, and Worldcoin Grants will also create selling pressure on prices.

Investors are currently motivated to purchase WLD tokens for:

• Belief in Sam Altman: Founder Sam Altman has a huge influence worldwide, and his followers believe that holding WLD is the best way to participate in the growth of the WorldCoin project.
• Price speculation: When the cryptocurrency market is in a bull run, high-profile cryptocurrency assets have huge room for speculation, and WLD is recognized to meet this criterion.
• The upcoming World Chain: After the official announcement of World Chain, the discussion of WLD on social media continues to rise. Investors actually expect to enjoy the dividends of World Chain development by holding WLD.

Judging from the WLD price performance, the token price has gone through three stages:

• Liquidity accumulation : In the early days of World ID registration, a large number of users poured in, resulting in a large number of Worldcoin Grants being issued, which may have caused a certain degree of downturn in the price performance of WLD tokens. However, as the discussion of WLD and the number of followers continued to increase, buying liquidity gradually increased. This phenomenon shows that the market's interest in the Worldcoin project and WLD tokens is growing, and investors' willingness to buy is gradually increasing, laying the foundation for the recovery of token prices and the improvement of market activity.
• OpenAI board turmoil hype: In December 2023, the OpenAI board of directors suddenly issued an announcement announcing the removal of Sam Altman from the board. This decision quickly became the focus of global attention and sparked widespread discussion and speculation. Rumor has it that Sam Altman may devote himself to the Worldcoin project he founded. These rumors spread quickly, inspiring the price of the WLD token to achieve a 50% increase in a single day. With Sam Altman returning to the OpenAI board of directors, the token price has returned to its previous level. This event shows the market's attention to Sam Altman's role in the Worldcoin project.
• Crypto bull market hype: In 204, the AI ​​sector flourished with the rapid rise of Nvidia's stock price, and the cryptocurrency market also began to hype AI concept tokens. Due to Sam Altman's special identity as the CEO of OpenAI, the WLD token has become the leader among AI concept tokens, and its price has been rising all the way and constantly breaking historical highs. However, with the pullback of Nvidia's stock price and Bitcoin price, the WLD token has also fallen from its highs.
• New Narrative?: Worldcoin announced the launch of Worldchain, a move that could add new momentum to the WLD token. Investors expect that the launch of Worldchain could bring more application scenarios and value-added opportunities to the WLD token, further enhancing its position and potential value in the cryptocurrency market.

Worldchain’s Catfish Effect

The Worldchain project, with its unique positioning and strategy, has the potential to create a significant catfish effect in the cryptocurrency market. Here are a few key factors that together could drive this effect:

• Sam Altman's special influence

Sam Altman, as the CEO of OpenAI, is already a well-known figure in the technology and artificial intelligence fields. His involvement not only brings credibility and visibility to the Worldchain project, but also helps attract the attention of investors, partners, and developers due to his extensive connections and influence in the industry. Altman's endorsement is likely to enhance market confidence in Worldchain and promote broader industry participation and innovation.

• Worldchain’s special relationship with OpenAI

Worldchain’s connection to OpenAI provides the project with a unique competitive advantage. This relationship may indicate that Worldchain will integrate advanced artificial intelligence technology on its platform, providing new possibilities for cryptocurrency and blockchain applications. The prospect of such technological convergence may inspire other projects to explore similar AI integrations, thereby driving the entire industry towards more advanced technological applications and solutions.

• Worldchain's unique anti-bot strategy

Worldchain's anti-bot strategy aims to ensure fair use and resource allocation of the network, which is rare in the current cryptocurrency market. By effectively identifying and limiting the malicious behavior of robots, Worldchain can provide a more secure and user-friendly environment.

As the project unfolds and further develops, Worldchain could become a key force in driving innovation in cryptocurrency and blockchain technology.

Two Crypto Stars: Sam Altman and Pavel Durov

Different fields, the same excellence

Sam Altman and Pavel Durov are two very influential figures in the technology world. They have made significant achievements in different fields. The following table compares some of their similarities:

Although Sam Altman and Pavel Durov are active in different fields, they are both representatives of promoting technological innovation, valuing user rights, and having a strong entrepreneurial spirit. Their work has not only had a profound impact on the technology industry, but also promoted social and cultural changes around the world.

Revaluation of WLD through TON

With the launch of Worldchain, it is expected that the valuation logic of WLD tokens will change significantly. The valuation factors based on liquidity, project vision and other relatively vague factors will shift to a more specific and clear public chain token valuation model. This shift means that the value of WLD will reflect its actual application potential and network effects as a public chain infrastructure, rather than just speculation or vision expectations. In the cryptocurrency industry, the influence of the founder is crucial to the success of the project. Therefore, comparing WL led by Sam Altman and TON led by Pavel Durov, the upside potential of WLD can be more clearly assessed.

Since Worldchain has not yet been officially launched and there is a lack of specific data on network operation, there are certain limitations in comparing TON and WLD from the perspective of network performance and operation data. Based on the existing price data comparison, a simple valuation of WLD can be made.

In the next year, the circulation of tokens will increase to 15%, that is, 1.5 billion tokens, and assuming that WorldChain

Already online:

• WorldChain is developing fast (optimistic): Based on 50% of the current circulating market value of Ton, the theoretical price of WLD is $10;
• The development speed of WorldChain is medium (neutral): based on 25% of the current circulating market value of Ton, the theoretical price of WLD is 5 US dollars;
• WorldChain is developing slowly (pessimistic): Based on 10% of the current market value of Ton, the theoretical price of WLD is $2;

The price has already fallen back 60% from its peak, and the risk of further decline is low. As WLD tokens begin to be unlocked in July 2024, the momentum for its price increase may gradually weaken.

Although market investors have high expectations for Worldchain, its price still faces certain challenges, especially after a large number of tokens were unlocked in July this year, and as the number of circulating tokens increases every month, there may be selling pressure. Only when the cryptocurrency market re-enters the bull market volatility period, the investment value of WLD may be fully reflected.

Summarize

The Worldcoin project aims to reshape its long-term development vision through its Layer-2 network, WorldChain. However, whether WorldChain can be successfully deployed and achieve its set goals remains to be seen. As for the specific impact of WorldChain on the price of WLD tokens, it has not yet emerged. As the project progresses and more details are disclosed, the market will be able to more accurately assess WorldChain's potential contribution to the entire Worldcoin ecosystem and the value of its tokens.

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