Worldcoin, founded in 2019 and renamed “World” in 2024, faced criticism due to privacy and data protection scandals. The project aimed to provide digital identities and free tokens in exchange for biometric data like facial recognition and iris scanning. However, the project faced data protection regulation issues in many countries, resulting in fines and bans.

Biometric data has the potential for creating digital identities, but it also carries significant risks. Worldcoin used a centralized storage approach, which lacked transparency and created a security hole for hackers. This contradicts the basic principles of blockchain technology, which emphasize transparency and decentralization.

Worldcoin used ZKsync technology to verify data without revealing its content using Zero-Knowledge Proofs (ZK). While ZK technology is a step forward in data protection, it does not solve the issues related to data storage by itself. Worldcoin promised that the collected data would be deleted after the completion of machine learning model training, but a data protection incident revealed improper use of ZK technology, leading to data loss and loss of trust.

The future of biometric data protection lies in combining zero-knowledge proofs (ZK) and Fully Homomorphic Encryption (FHE). FHE allows data to remain encrypted during processing, ensuring security and enabling the necessary operations on the data. The ZK-FHE combination can process and verify biometric data without decoding its content, preventing security gaps and ensuring sensitive data remains protected throughout its lifecycle.

The Worldcoin scandal highlights that data protection cannot rely solely on a single technology. Although ZK proofs are a significant step forward in data protection, they must be used alongside other encryption solutions like FHE for complete security. Additionally, restoring decentralization requires increasing transparency and avoiding centralized systems.

FHE and ZK technologies have proven effective in various scenarios, providing scalable, secure, and transparent data management models. The case of Worldcoin emphasizes the need for new standards for biometric data protection to ensure user security and trust in technology.

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<p>The post Biometric Data: A Double-Edged Sword in Privacy and Security first appeared on CoinBuzzFeed.</p>