Ethereum co-founder Vitalik Buterin has voiced concerns over the rise of zero-knowledge (ZK) digital identity projects, specifically warning that systems like World — formerly Worldcoin and backed by OpenAI’s Sam Altman — could undermine pseudonymity in the digital world.
In a post published on Saturday, Buterin addressed the benefits and risks of digital ID models that use zero-knowledge proofs to verify user authenticity without revealing personal data. While these systems are designed to prove a user is a “unique human,” Buterin cautioned that the current trajectory may lead to a centralized, rigid identity framework.
“Under one-per-person ID, even if ZK-wrapped, we risk coming closer to a world where all of your activity must de-facto be under a single public identity,” he wrote.
World claims to have signed up over 13 million users using its biometric-scanning Orb device to assign a unique ID. While the project employs ZK proofs to safeguard identity data, Buterin remains skeptical of the long-term implications.
He argued that even privacy-preserving mechanisms like ZK proofs could become problematic if linked to rigid, one-to-one digital identities. In such a model, users might no longer be able to manage multiple pseudonymous accounts, a core feature of today’s digital landscape.
“Taking away the option for people to protect themselves through pseudonymity has significant downsides,” Buterin warned, especially in an era of increasing technological threats like AI and drones.
While Buterin acknowledged ZK-wrapped ID systems could help combat spam, bots, and AI-generated manipulation across social media, voting, and online services, he emphasized the need for flexibility.
He cautioned that social apps could easily default to “one ID, one account,” which would mimic a real-name policy and stifle personal privacy. Instead, he proposed a pluralistic approach, where no single platform or government controls identity issuance.
“Weak ID systems, like Google accounts today, still let users manage multiple accounts,” Buterin said. “We should preserve that flexibility rather than enforcing rigid identity structures.”
JPMorgan and other major U.S. banks are under fire for a lawsuit aimed at dismantling the Consumer Financial Protection Bureau’s (CFPB) newly established “Open Banking Rule.”
The crypto market remains firmly in “Greed” territory, with CoinMarketCap’s Fear & Greed Index clocking in at 69/100 on July 19. Despite a modest 24-hour dip from 71, the index has now held above 60 for 11 consecutive days.
The crypto industry saw major advancements this past week across DeFi, NFT, Layer 2, and AI-powered platforms.
Cryptocurrency exchange Bullish, backed by billionaire investor Peter Thiel, has officially filed for an initial public offering (IPO), marking a major step toward entering the public markets.