The Proof of Humanity (PoH) mechanism is an innovative approach that enables human identity verification by leveraging technology and artificial intelligence.
Although robots are currently relatively simple tools compared to the complexities expected in the future, advancements in technology and the development of artificial intelligence are anticipated to lead to far more advanced and intelligent capabilities. These advancements will significantly impact various fields of human activity, particularly technology. In this article, we aim to explore the concept of Proof of Humanity and examine how this mechanism can be used for human identity verification.
Proof of Humanity, often called PoH, is a novel system that uses technology and AI to verify human identity. Various programmers and engineers developed this mechanism to combat fraud and misuse in virtual environments and other domains. This article explores how PoH functions and its diverse applications in enhancing security and trust in online communities, demonstrating how this technology can improve digital experiences.
Currently, AI and programmable mechanisms in the digital asset ecosystem have evolved well beyond the research stage. They are now effectively used for identity forgery and security breaches within this ecosystem. This is a significant concern for the security and stability of digital currencies, as higher technical capabilities provide adversaries with greater opportunities.
Various solutions have been introduced to tackle these challenges, with CAPTCHA being one of the most widely known. CAPTCHA helps identify whether a user is a real human or a bot by presenting specific image recognition or text-based challenges. However, as AI’s capabilities grow, CAPTCHA alone can no longer guarantee protection against fraud and identity theft.
This evolution highlights the need for a more robust digital identity verification test to ensure users accessing online services and resources are human.
Proof of Humanity, as an innovative system on the Ethereum network, pursues this goal. In this article, we will explore the functionality and significance of this system in enhancing security and trust in the digital world. By utilizing artificial intelligence mechanisms and advanced technologies, this system increases the ability to distinguish humans from bots. It elevates confidence in interactions between individuals, providing essential value in creating a secure and sustainable digital world.
What is the concept of Proof of Humanity?
Proof of Humanity, an innovative identity verification system developed in collaboration with the companies “Kleros” and “Democracy Earth”, was launched on the Ethereum blockchain. PoH offers a new approach to security and identity verification in the digital world by combining blockchain and AI.
PoH is a decentralized application (dApp) that allows users to verify their identity by submitting specific photos or videos. This ensures that users are real humans and not using a Sybil account. Essentially, PoH can create a list of verified human identities, protecting against Sybil attacks, where numerous fake accounts are created to manipulate network operations.
PoH is a decentralized application (dApp) that allows users to verify their identity by submitting specific photos or videos.
This system supports the stability of digital currencies and blockchain-based systems and strengthens security and trust in the digital world. Given the rapid growth of communication technologies and the spread of fake news, Proof of Humanity has become one of the essential features for preventing fraud and misconduct in the digital space. This system significantly contributes to network security and transaction processing, enhancing the virtual space user experience.
Main Objective of the Proof of Humanity Project
The Proof of Humanity (PoH) project was developed to verify human identity through a decentralized, innovative approach. In collaboration with Democracy Earth, it introduced the “Universal Basic Income” (UBI) initiative, distributing UBI tokens to everyone verified through this identity system.
This system verifies users’ identity by providing valid documentation and granting access to certain benefits and services. This partnership has turned the project into an active force for social and economic change.
As blockchain technology grows and digital identity security becomes increasingly crucial, PoH plays a vital role in ensuring the security and transparency of personal information. The project not only assists in verifying individual identities but also facilitates the fair and need-based distribution of financial resources. Thus, PoH represents a prominent example of how blockchain technology can intersect with social and humanitarian goals to improve lives in the modern world.
Applications of Proof of Humanity
According to Kleros, Proof of Humanity has many useful applications for everyone, and in this section, we intend to provide a detailed explanation of these applications.
Universal Basic Income (UBI)
Universal Basic Income (UBI) is a periodic payment program designed and created in collaboration with two companies, Democracy Earth and Kleros. This massive income plan is granted to all individuals in a society, provided they can verify their human identity. Through the Proof of Humanity tool, the fair and global distribution of income has become a reality. Registering as a verified human is the only requirement for participating in this program.
In fact, this program provides individuals with the opportunity to participate as members of a society and supports the importance of equality and social justice. With the growing capabilities of blockchain technology and the possibility of human identity verification, this plan has become an effective tool for fair and equal income distribution to all sectors of society. In this way, Universal Basic Income and Proof of Humanity intersect as two essential elements to help prevent economic inequalities and create a fair and sustainable society.
With the increasing capabilities of blockchain technology and the ability to prove human identity, this program has become an effective tool for fair and equitable income distribution across all segments of society.
When you successfully prove you are human, the project rewards you with a UBI token paid every hour. This is a valuable opportunity that has been provided to you, and it is a program that has not only attracted ordinary individuals easily but has also drawn prominent figures who have been encouraged to register. For example, Emanuel Ginóbili, the internationally recognized former Argentine basketball player, decided to register on the Proof of Humanity platform on April 21 this year and receive his UBI.
Global IDs and Sovereign Identities
Proof of Humanity is directly connected to global identifiers and sovereign identities. This system enables the creation of an integrated method for entering the global system. As a result, users can quickly and securely access various services and applications without re-entering their personal data.
One of the main advantages of this system is that the identity information entered by users in Proof of Humanity can be used as a global identifier. In this way, individuals can access all services and applications connected to this system with a single identity verification without the need to re-enter their personal information. This improves the user experience and is also effective in terms of security.
Overall, this system aims to accelerate communication processes and facilitate the transfer of information across multiple environments while protecting the security and confidentiality of users’ data.
Certification Systems
Using the Proof of Humanity mechanism, individuals or organizations that need to verify your information, for example, to find your titles across different platforms can do so quickly and accurately through the data you provide to the platforms. Therefore, instead of needing a broad and time-consuming review of your information, they can quickly and automatically access the desired information by accessing a badge on your personal profile.
This feature of PoH not only greatly reduces the time and effort associated with searching and verifying information, but it also increases the accuracy and reliability of the data. Given that this system operates on a blockchain basis and uses verified and trusted information, it minimizes the potential for human error.
In other words, Proof of Humanity, as an advanced identity verification system, has become an efficient tool for quick and secure access to personal and important information in the digital world.
Enhancing Security in Side Chains with PoH
Using identity verification based on the principle of “one person equals one vote” has become a reality, and securing side networks or side chains can be important. This method leverages the integrity and humanity of individuals in resolving disputes and issues related to side networks.
According to this principle, people are allowed only one vote or identity within these networks. This limitation is a fundamental and core measure to ensure integrity and fairness in the actions and decisions made within side networks. In this way, issues such as fraud, violations, and conflicts can be minimized, ensuring fairness is upheld in the decision-making processes and actions related to these networks.
It is worth mentioning that several platforms, including Worldcoin, Proof of Humanity, BrightID, Idenam, and Circles, have stated that with the advancement of robotic skills, humans may face threats that could lead to a reduction in Universal Basic Income. According to Vitalik Buterin, the co-founder of the second-largest blockchain network in the world, Ethereum, these concerns highlight the need for measures to develop human digital identity verification systems.
Buterin emphasizes that such systems can effectively prevent spam and distribute energy, provided they follow the principles of decentralization. This decentralization helps reduce reliance on centralized entities and prevents errors in data transmission.
Although the design and implementation of these systems are complex, Buterin stresses that using protocols without identity verification may lead society toward centralized identity technologies, legal currencies, and restricted communities.
Vitalik Buterin’s Proposal for Replacing Token-Based Governance
The co-founder of Ethereum claims that the token-based governance system in its current form needs change and suggests that Proof of Humanity or Proof-of-Participation options be used in governance.
In this regard, Buterin posted a lengthy critique of the token-based governance system in the DeFi space and emphasized the importance of reforming and improving this system. He believes that this type of governance could be detrimental to DeFi. He pointed out that token-based governance faces drawbacks such as reduced decentralization, which arises from the centralized voting methods in DeFi, and it seems that this approach contradicts the fundamental principles of decentralization in DeFi.
Due to the importance of maintaining decentralization and the principles of DeFi, Buterin stresses the need for human digital identity verification systems with a focus on validation. These criticisms indicate that developing and using human identity verification systems must be highly valued to create fair and decentralized digital communities.
The creator of Ethereum also introduces “Proof of Participation” as a possible alternative to the token-based governance system. In this approach, voting rights are limited to users who have participated in a specific protocol or project, and it is suggested that governance be exclusively distributed among addresses that meet certain criteria. He also presents the idea that second-degree voting could provide a unique solution for decentralized governance, meaning that the power of each voter would be proportional to the square root of the assets they have introduced to have decision-making rights within the system.
Continuing his critique of the token-based governance system, Buterin introduces the “skin-in-the-game” approach. This approach ensures that each voter is responsible for their own decisions, rather than being collectively accountable.
“Voting and token-based governance fails because, in this system, voters are collectively responsible and accountable for their decisions. As a result, if one person makes a wrong decision, everyone loses their assets together, and no one is individually accountable for this issue.” -Vitalik Buterin, co-founder of Ethereum
Why Did the Creator of Ethereum Criticize Token-Based Governance?
Currently, most DeFi projects manage protocol upgrades, reward distribution, and other aspects of governance through a token-based system. In this model, decisions are made by the largest token holders, with votes weighted according to token ownership.
As a result, many projects face criticism for enabling “whales” (large token holders) to vote in their self-interest, which undermines the fairness of the governance system. These whales can sway decisions according to their preferences, raising concerns about impartiality.
Given these criticisms, DeFi projects face a governance crisis, suggesting a need for reform. Alternatives such as Proof of Humanity or participatory stability are proposed to enhance decentralization and transparency in DeFi elections and decision-making. These changes aim to improve DeFi project performance and ensure fair, participatory governance across these networks.
Vitalik Buterin has highlighted two major issues with token-based governance. First, it can create conflicting motivations among community members, potentially leading to weakened unity and alignment within the community.
The second issue he raised is the vulnerability of token-based governance to “vote buying” and “collusive attacks.” Buterin points out that tokens can be bought and sold, which may distort voting outcomes. Additionally, well-organized, self-interested groups could influence governance, steering decisions to serve their own ends.
It appears that addressing these vulnerabilities is crucial to establishing fair and reliable governance in DeFi projects.
Buterin stated, “The most important thing to do today is to let go of the idea that token-based governance is the only legitimate form of decentralized governance.”
The Ethereum co-founder discusses “unbundling” in governance, where “vote buying” occurs through tokenized assets. He explains that unbundling allows borrowers to gain governance power without an economic stake, while lenders pursue their economic interests without governance power or voting rights.
Vitalik Buterin’s View on Worldcoin (WLD)
Following Worldcoin’s (WLD) launch with a human identity verification system, Buterin shared his thoughts in a blog post. This post covers Worldcoin’s vision and the development of the Worldcoin token. Buterin stressed the importance of human identity verification, noting that the boundary between humans and machines is rapidly blurring as AI and similar technologies advance.
Buterin believes systems like these can address spam prevention and equitable power distribution, provided they commit to decentralization. Decentralization reduces reliance on centralized authorities and minimizes data exposure risks.
However, Buterin expressed concerns in four main areas: privacy, accessibility, the focus on the Worldcoin Foundation, and security.
Despite design and implementation challenges, Buterin argued that without identity verification, the world may increasingly turn to centralized identity solutions, digital currencies, closed communities, or a combination thereof.
Worldcoin Project and the Proof of Humanity Mechanism
Worldcoin, launched globally on July 24, 2023, after two years of development and testing by OpenAI, quickly drew scrutiny. The UK’s Information Commissioner’s Office is investigating potential data protection violations, and France’s National Commission for Information Technology and Civil Liberties has deemed it unlawful. Following the intense criticism, Worldcoin published an audit report on July 28, 2023.
The WLD token, built on Ethereum using the ERC20 standard, saw a rapid price increase after listing on major cryptocurrency exchanges like Binance, Bybit, Huobi, KuCoin, OKX, and Gate.io.
Sam Altman and Alex Blania, Worldcoin’s founders, stated that this currency aims to serve as a universal basic income. The project seeks to provide equal access to the global economy through identity verification.
“Worldcoin innovates in identity verification. While cryptocurrencies like Bitcoin allow anyone with multiple identities to transact, Worldcoin assigns a single address to each individual on the planet.” -Jeremy Clark, Professor at the School of Information Engineering Systems at Concordia University.
How Worldcoin Verifies Identity
Worldcoin uses a hardware model called ORB (Orbital Resonance Biometric) for user authentication. According to the explanation on the Worldcoin website, ORB is a device that scans the iris of the eye and stores each individual’s information as a set of unique numbers (IrisHash). This IrisHash is used as an individual identification method for humans, such that every person using Worldcoin has a unique code called “World ID.” Therefore, when you have your IrisHash and use your encrypted wallet, you essentially have a type of digital passport or global identifier. These features have led some individuals to consider the Worldcoin project as a biometric project, which is not entirely surprising.
According to one of Worldcoin’s spokespersons:
“This orb-shaped device does not store any biometric data, and the images collected by the Orb are quickly deleted unless the person registering explicitly requests to keep them.”
Major Concerns with the Worldcoin Project
While Buterin sees great potential in this protocol, he also highlights serious risks. His primary concern is the privacy implications of iris scanning, which could capture information beyond expectations, including gender, ethnicity, and some medical conditions.
Furthermore, Buterin argues that if projects like Worldcoin continue decentralizing, they can avoid reliance on centralized authorities and share minimal information. Otherwise, if the proof of humanity remains unresolved, wealthy actors, including adversarial governments, could easily take over decentralized governance.
Final Thoughts
In summary, human identity verification has become a critical issue in the cryptocurrency world. Projects like Worldcoin use biometric technology and specialized mechanisms to give individuals equal access to the global economy without requiring sensitive personal information. This effort could enhance security and privacy while offering everyone a fair chance to participate in the worldwide economy.
However, challenges such as privacy, accessibility, centralized project focus, and security need careful consideration. These challenges demonstrate that successfully implementing human identity verification in crypto will require precise strategies to ensure security and uphold individual rights. This article highlighted the importance of these issues and emphasized the need to advance these mechanisms for the future of cryptocurrency.
