As organizations increasingly rely on biometric data for various applications, from accessing physical spaces to financial services, the frequency and impact of data breaches continue to rise. On May 15, the Worldcoin Foundation, the organization behind the Worldcoin iris biometric cryptocurrency project, announced the open-sourcing of its secure multi-party computation (SMPC) system.
Enhancing Biometric Data Security
This SMPC system is responsible for encrypting iris codes into secret shares held by multiple parties, allowing the Worldcoin Foundation to permanently delete iris codes generated through its previous uniqueness-checking system. The head of protocol at the Worldcoin Foundation, Remco Bloemen, explained that the development and open-sourcing of the SMPC system enhances biometric data security.
The Worldcoin Foundation aims to increase the robustness of the Worldcoin protocol and set a new standard for security. This SMPC approach is even effective against quantum computing threats, highlighting its advanced security measures.
According to a report by Fortune Business Insights released on April 29, the global biometric system market is predicted to grow from $30.77 billion in 2022 to $76.70 billion by 2029. Concurrently, research from MIT’s Stuart Madnick revealed a significant rise (20%) in data breaches between 2022 and 2023, with the number of affected individuals doubling.
Introducing SMPChttps://t.co/LsGtH4bb9U
— Worldcoin (@worldcoin) May 15, 2024
Worldcoin’s Commitment to Privacy and Data Protection
Jannick Preiwisch, the Worldcoin Foundation’s data protection officer, emphasized the community’s commitment to developing and deploying advanced privacy-focused technologies. These efforts aim to improve trust online and increase access to the global economy. The new system demonstrates an unparalleled commitment to compliance with the EU General Data Protection Regulation and other data protection regimes worldwide. Additionally, it complements Worldcoin’s intention to provide users with more choice and control over their data, including personal custody and the ability to un-verify their World IDs.
Worldcoin has previously faced scrutiny from regulators worldwide, particularly in Europe, regarding its GDPR measures and user data practices. However, the foundation has taken steps to signal its willingness to comply with regulatory standards. In March 2024, it made the software of its iris-scanning Orb open-source and implemented a new “personal custody” privacy feature for user data.
In April, it announced plans to tighten privacy checks and allow users to un-verify their World IDs. At the beginning of this year, Worldcoin saw significant milestones, with its active daily user count for its wallet app surpassing one million. Additionally, its token WLD surged by 141%.
Decrease in Cryptocurrency Market Losses
The cryptocurrency market also experienced a notable decrease in losses due to hacking and fraudulent activities in the first quarter of 2024 compared to the same period in 2023. A study report published on March 28 by Immunefi, a blockchain security startup, revealed that overall losses from fraud and hacking in Q1 2024 were approximately $336.3 million, a significant drop from the $437.5 million recorded in Q1 2023. The audit identified 46 instances of hacking and 15 instances of fraudulent activity.
Of the stolen funds, $73.9 million (22%) from seven exploits in Q1 were recovered. The number of attacks decreased by 17.6%, from 74 in Q1 2023 to 61 in 2024. Hacks accounted for 95.6% ($321.6 million) of losses across 46 incidents, while fraud, scams, and rug pulls accounted for 4.4% ($14.7 million) in 15 incidents. Ethereum was the most targeted chain, ahead of the BNB Chain, with both networks accounting for 73% of total losses combined. Ethereum experienced the highest number of attacks, with 33 incidents, accounting for 51% of the losses. BNB Chain had 12 attacks, representing 22% of the exploited funds. Other incidents were identified on Arbitrum, Solana, Optimism, Bitcoin, Blast, Polygon, Conflux Network, and Base.
The Worldcoin Foundation’s efforts to enhance biometric data security through the open-sourcing of its SMPC system mark a significant step in addressing the growing challenges of data breaches. Coupled with the projected growth of the biometric system market and ongoing regulatory adjustments, these developments underscore the importance of robust data protection measures.
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