A group of Lido Finance founders is preparing to launch “Y,” a blockchain identity platform that aims to compete directly with the World Network.
Where “Y” came from
A new blockchain project called “Y” is being developed by a group of founders of the largest DeFi platform on Ethereum, Lido Finance, with the aim of competing with OpenAI CEO Sam Altman’s World Network (formerly known as Worldcoin).
According to CoinDesk, Y aims to overcome the controversies and limitations that the World Network is facing, especially in how to authenticate user identities. A person close to Cyber Fund, the company led by Lido co-founders Konstantin Lomashuk and Vasiliy Shapovalov, confirmed the information.
Limitations of World Network
World Network was launched in 2021, with the idea of collecting biometric data, using the Orb device to scan irises and issue World IDs. However, the platform has been embroiled in controversy over the following:
Privacy concerns: Iris data, although encrypted, has raised concerns about the possibility of leaks. Countries such as Kenya, India, Brazil, France, Germany, the UK, Hong Kong, and Spain have suspended the service for that reason.
Data black market: There is a trade in iris scan data to create fake accounts, undermining the transparency of the system.
Centralization: World Network uses centralized hardware and is closely linked to OpenAI, which goes against its decentralized nature.
To compete, Y has proposed a solution to completely eliminate biometrics and replace it with modern blockchain technology.
Y’s New Approach to Identity Authentication
Y focuses on building digital identities through the data users leave behind on the network:
Using social media activity, blockchain history, and the Ethereum Attestation Service (EAS) to verify users.
Based on the social graph, providing a more detailed quantitative score to determine “humanness”.
This solution not only reduces the risk of data leakage but also limits the risk of fraud, while protecting privacy better than World’s iris scanning system.
Marketing strategy focuses on the weakness of World Network
In the document “Y vs. WorldCoin”, the Y development team focused on the limitations of the World Network to attract attention:
Exploiting privacy issues, centralization, and concerns about biometric data.
Compare World Network to OpenAI, which was a non-profit project but later became centralized and for-profit.
Leveraging the reputation and influence of the founders of Lido, the leading liquid staking platform on Ethereum with over $30 billion in staked assets, to promote Y.
Y’s long-term vision is to become a crypto super app, allowing people to build and monetize their digital identities. Overall, the main difference between the two platforms will be how users are authenticated.
Worldcoin has officially rebranded to World Network (or simply World) since October 17, 2024. Sharing the reason, CEO Sam Altman said that the old name Worldcoin no longer reflects full scale and project vision. World Network will converge 3 main elements including World Chain, World ID and Worldcoin, aiming at the ultimate goal of building a network that can distinguish between humans and AI-dominated agents such as chatbots and virtual assistants.
The story of competing with World Network today reminds Coin68 of Lido and Paradigm’s investment in Symbiotic in May 2024 – a move that is believed to threaten EigenLayer’s dominant position in the restaking sector.
