The Eyeball-Scanning Plan Designed to Save Us From AI

15 Jun 2023 · 51 min

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In short

Odd Lots Podcast Episode Summary: The Eyeball-Scanning Plan Designed to Save Us From AI

Podcast Overview Title: Odd Lots Hosts: Joe Weisenthal and Tracy Alloway Description: Bloomberg's Joe Weisenthal and Tracy Alloway explore interesting topics in finance, markets, and economics every Monday and Thursday.

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Episode Overview Episode Title: The Eyeball-Scanning Plan Designed to Save Us From AI Episode Description: The rise of artificial intelligence (AI) brings societal concerns such as job displacement and deepfake fraud. The podcast discusses Worldcoin, co-founded by Sam Altman, which seeks to address these issues through an eyeball-scanning device called the Orb. This device aims to provide unique personal identifiers, akin to a global social security number, without the need for sharing personal data. The conversation features Alex Blania, CEO of Tools for Humanity, discussing the potential applications of this technology.

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Key Themes and Discussions

  1. Concerns Surrounding AI
  2. Societal Impact: The episode opens with a discussion about fears related to AI, including job loss and the potential for deepfake fraud.
  3. Personal Anecdote: The hosts recount a recent experience where an AI-generated version of their podcast was created, provoking thoughts on authenticity and identity in the age of AI.
  1. Worldcoin and The Orb
  2. Introduction to Worldcoin: Co-founded by Sam Altman of OpenAI, Worldcoin aims to create a societal infrastructure that would ensure AI benefits everyone.
  3. The Orb Explained:
  4. An eyeball-scanning device that verifies individuals as unique humans.
  5. Produces a unique embedding from iris data, which is signed and stored securely.
  6. No personal information is shared, maintaining user privacy.
  1. Use Cases and Applications
  2. Proof of Human Identity: The technology is designed to facilitate proof of personhood on the internet.
  3. Universal Basic Income (UBI): The Orb could potentially be used to verify individuals for UBI systems in a future where AI displaces jobs.
  1. Challenges and Critiques
  2. Privacy Concerns: The hosts express skepticism about the implications of an eyeball-scanning system and its potential for misuse.
  3. Decentralization and Control: Discussions around the need for decentralization in identity verification systems to prevent monopolization by entities like governments or corporations.
  4. Adoption Path: The conversation explores incentives for people to adopt the technology, such as receiving tokens for participation.
  1. Technical Aspects and Innovations
  2. Hardware Development: Alex Blania discusses the challenges and complexities of developing the Orb, including supply chain issues and the need for advanced optics.
  3. Open Source Philosophy: Emphasizes the importance of transparency in technology development to build trust among users.
  1. Future Implications
  2. Dystopian Scenarios: The hosts consider extreme and unlikely scenarios involving misuse of the technology, including threats to personal safety.
  3. Long-Term Vision: The potential for the Orb and Worldcoin to create a new framework for identity verification and economic inclusion in a changing job landscape.

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Key Takeaways

  • AI and Job Displacement: The ongoing discussion about the implications of AI on employment and personal identity.
  • Worldcoin's Vision: A bold initiative aiming to create a universal identity system while preserving user privacy.
  • Privacy vs. Convenience: A significant challenge in the adoption of new technology involves balancing privacy concerns with the benefits of convenience.
  • Open Source as Trust: Ensuring the technology remains open source can help mitigate fears about centralized control and data misuse.

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Conclusion The episode wraps up with a reflection on the potential societal transformations brought by AI and the importance of developing ethical frameworks to manage these changes. Both hosts express a mix of curiosity and caution regarding the future of identity verification in an AI-dominated world.

For further insights and discussions, listeners are encouraged to follow the hosts and the guest on social media and explore additional content on the Bloomberg platform.

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Transcript

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0:00You're being sold an AI future where you're obsolete or irrelevant. That vision is wrong. At Palantir, they're building AI that helps workers and unlocks their full potential. American workers are our nation's greatest strength. AI shouldn't eliminate them. It should elevate them. Palantir is here to tell their stories. From factories to hospitals, AI is freeing people from drudgery, letting them do what humans do best. Create. Solve. Build. Palantir, making Americans irreplaceable.

0:38So you're telling me that the AI that's meant to make everyone's job easier to manage just adds more to manage on top of the thousands of apps the IT department already manages. Funny how that works. Any business can add AI. IBM helps you scale and manage AI to change how you do business. Let's create smarter business, IBM.

1:15Hello and welcome to another episode of the Odd Lots podcast. I'm Joe Weisenthal. And I'm Tracy Alloway. Tracy, do you remember a few weeks ago or maybe a couple of months ago now, Someone made a fake AI version of the Odd Lots podcast, and they replicated our voice. Yes, I think they used ChatGPT to do it, and they basically asked ChatGPT to create a script for Odd Lots, and then they had someone replicate another app or something replicate the voices. It wasn't a someone. I mean, it was some other AI app. It was pretty good. It was good. I mean, it clearly was not us. How much did it worry you, Joe?

1:56I think I'm more of an AI doomer warrior than you are. Interesting. I mean, I have concerns, don't get me wrong, but what do you think is the worst case scenario? Is it robots taking over the world? No, I think that like in a couple of years, the AI will do a really good job of making the Outlaws podcast. And people will say, I don't really need to listen to Joe and Tracy anymore. The AI is, I don't know. I'm like, you know. But I feel like maybe that's a little paranoid. No, I feel like there is reason for concern. I hope. Maybe I'm just being an optimist here. I hope we are a few years away from the Odd Lots replicant.

2:29I know, but I want to do this for like another 30 years. I don't want to just have like three or four years or a few years. That's the optimistic scenario, is it? Doing this in 30 years time? Okay. All right. AI, lots of people expressing some worries about it. A million different kind of worries. Yeah. And we see all these, you know, good ways that the technology is being used, but also insidious ways. As you pointed out, someone made an Odd Lots episode. I think that was in a very fun-spirited way, a nice way. But there are people who use this technology for more nefarious things. Yeah, I think there was like a 60 Minutes recently where someone was able to impersonate someone's voice and say, hey, you could imagine a scam where someone's like kids say, hey, I need money or something like that.

3:15And they call and it sounds just like them, especially in a couple of years when the tech gets better. and it becomes a bit of a crisis in the sense it's like, do I know that a person is a person? When they talk to me on a Zoom, when they talk to me on a podcast, when they talk to me on a phone call, et cetera. Well, even on Twitter, on a much more basic level, you have all these bots. And I don't know about you, but there seems to be a new Tracy Alloway with the L as like an I and fooling everyone almost like every few weeks. And then you have to go through the whole bureaucracy of reporting to Twitter and proving that you are in fact the original Tracy Alloway.

3:49And not to get on too much of a tangent, but wasn't Elon going to solve this? Because he said like, oh, I'm buying Twitter to solve the bots problem. And I don't, and as you say, it's not been solved. I think that's a whole other episode. But even with like really rudimentary, like, you know, fake Tracys and fake Joes, like that's the most rudimentary thing. Just like taking our avatar and like changing like one of the L's and Trace in L away to like a I or whatever, or a one. Like, that's just going to get worse. Mm-hmm. You know what's a really good business model? creating a problem and then creating the solution to it.

4:26Yes, that's exactly right. So we have all of these AIs and they're going to replicate us and they're going to look like us and they're going to talk like us. But the good news, in a sense, good, is that others are working on the problem of how do you prove that you are who you are in a world in which AIs can replicate our voices and our faces and our expression? Technology can save us from technology is the thrust of this, right? Exactly. So we are going to be speaking to someone working on a technology designed to address this concern in part. And as you say, some of the people working on it are some of the same people behind some of the most cutting edge AI research that's sort of like blowing everyone's minds in both good and scary ways these days.

5:12So I'm just going to go ahead and lay out my priors here, which are that I find this sort of instinctively dystopian. The topic of this podcast, what we're going to be discussing, this technology creeps me out a little bit. But that said, I don't know that much about it. I don't know much about how it works. And so I am very interested to hear the bull case on eyeball scanning. So you just jump right. We're going to be talking eyeball scanning. We are going to be speaking with Alex Blagna. He is the co-founder of WorldCoin, an entity that was set up also by Sam Altman, a name that everybody knows now because he's the co-founder or the founder of OpenAI, which powers ChatGPT and other tools, other co-founder, Max Novenstern.

5:58We're going to be talking about how an eyeball scanner can allow us to theoretically prove our humanity in this future AI world. So, Alex, thank you so much for coming on OddLots. Thank you for having me. I'm excited to talk. So I'm trying to think, I mean, like the threat, how real is it that, you know, in a few years, do you think, not whether AI will be able to create a perfect replica of the podcast, but that let's say we're having this conversation. and I might really not know that I am talking to the real Alex Blania versus an AI that can perfectly replicate your voice and replicate your face.

6:44Like, is that two years away? Is that three years away? Like, how soon is that coming? Well, I think partially we are already there, right? The technology is not completely open source yet, so you don't have widely deployed systems that can do that. But rather, right now, you have a few entities that actually can do things like that or would be able to do things like that. But this is going to change because, of course, the progress is increasing. So it started with DALI, and you had stable diffusion and many other things that, on the image generation side, became increasingly impressive. And I think AI art is one of the coolest things of the last couple of the last year, to be honest.

7:31So that's on the image generation side of things. And then, of course, you have ChatGPT on the text generation side of things. So I think on Twitter, as you discussed in the introduction, you are, I think, already there. That it could happen that you just chat with a neural network and you have absolutely no idea that you chat with a neural network. And you might argue about odd lots for like an hour and don't realize that this is not actually a person. I'm just thinking like half the people I argue with on Twitter probably are bots. Neural networks. Yeah. Well, maybe just to step back in time a little bit.

8:03I mean, WorldCoin has been around for a few years now. And to some degree, as Joe mentioned, you guys kind of anticipated this threat. What was the sort of aha moment that made this all come together? Like, how did this actually develop into a company? and what was the use case thesis when you were just setting out? Well, we honestly did not, we didn't start off to solve a threat, right? That is not brief history in time. Back then I did research. So we started the company a little bit over three years ago and I was doing research in deep learning applied to quantum physics. So I I basically predicted quantum systems of neural networks.

8:50And that's kind of, I think, is a very promising field in physics. And Sam was already working on the idea of Roquan together with Max. So I think they've already been on it for like six months. But of course, Sam had a full-time job at OpenAI. Max had a full-time job back then. So it was all like in a early idea phase. Then I got an email from Max back then with an early paper describing the vision of WorldCoin and that I should come by and talk. And then I had a couple of interviews with Max, one with Sam. We spent a lot of time together and actually decided to proceed. But to go back to the initial proposition, and I think that is very important, that it's not about solving a threat, but rather how, I mean, Sam was already working on OpenAI, and this was three years ago.

9:41So back then it was not yet an accepted topic that AI is going to happen and it's going to be as powerful as it is today. It was a very niche topic, I think. Although OpenAI, of course, was already quite a famous entity. But of course, Sam was motivated by the idea of AI and what it's going to do to the world. And it's going to be this very powerful technology. And so the initial proposition of Rockland was really, what is the societal infrastructure that we can build that makes sure that AI is for the better of all of society versus a few? And so there's many things actually that come together here, like proof of personhood is what you just described is the ability to prove that you're an actual human being on the internet, which is basically just a much more capable identity system.

10:30but it goes as far as we think eventually UBI will become a thing and it actually is like a big chance if you have like a very, very powerful technology and it's not about kind of political redistribution but you have a very centralizing technology that you want to share the upside with the world with and that was another motivation kind of all kind can actually be the infrastructure to do that because you have a very capable identity system you have an economic system that connects everyone So there were like a couple of very ambitious reasons why we think something like that. So basically creating and bootstrapping the largest identity and financial network that is actually open and privacy preserving versus relying on centralized government systems that might not work in large parts of the world is a very important proposition for the coming decades.

11:24So let's just jump right to it. People who are listening to this podcast, you might want to actually watch the video version. We're recording this on video as well. But here on set, I was going to wait a little while before unveiling it, but this is, I'm holding in my hand. I feel like we need extra music. A big orb. It feels about six pounds. I don't know. How heavy is this, Alex? I'm sure you know the exact weight. It's a little bit over one kilogram. Oh, okay. So I was wrong. So that's like just under like two and a half pounds. Okay. Okay, that's fine. About two and a half pounds and it's an eyeball scanner.

12:07And so here it is and it's not working right now or we're not scanning right now. So I can like tilt this in our face. It's not scanning. But let's like talk about what this piece of hardware that I'm actually holding it is. I'm going to set it on the table in front of me. it is an eyeball scanner. What does it do? So the short answer is one, it I will start with the short and then the longer answer. The short answer is that it first ensures that whatever is interacting with the device is an actual human being. So not a display or a photograph of an eyeball. Not a photograph or more sophisticated optical attacks because there's many things you can do here.

12:46So that's the first step. Checking that whatever we see is an actual human being. And then the second piece is it takes an image of my eye, calculates a unique embedding out of this picture. Everything happens on a device. And that embedding then is signed by the device. And that's then the only thing that actually leaves the device and gets compared against all other users. And if that uniqueness check is successful, then me, that I just verified with an orb, I then can later do a zero knowledge proof that I am included in that set. And if you're not familiar with your knowledge proofs, what it allows you to do is it lets you prove something without actually revealing the underlying information.

13:35So what that enables us to do is it builds essentially a self-custodial identity network where the data control is with the user and there's no centralized entity that actually has the information of who you are, where you're from, all of these things. But rather, this person is a unique human being and has verified Revolkan before, while the user could decide to attach more information to that. So that's kind of the short of it. I think we should talk much more about the why in a second, because that's not trivial, but yeah. Yeah, maybe just to help us get to the why, you could talk about what would be a practical use case for this technology?

14:18Because if I think about something like, you mentioned UBI, universal basic income. If I think a government starts some sort of UBI program, then I would assume that they identify people by something like a social security number or whatever the equivalent might be in that country. So what does this do that those traditional systems of identity do not? Well, so when you start with traditional identity, the really hard thing for governments is actually making sure everyone only has one passport. And that is with an identity is called deduplication. It's a really hard problem because all the systems, all the technologies you use usually in your life, let's say your iPhone, Face ID.

15:02what that actually does is just it re-authenticates you. So it realizes I'm the same person again logging into that phone. And that's a one-to-one comparison and that is fairly easy to do. What is really hard to do is making sure, okay, Alex did not sign up compared to a billion other people. And so that's why many governments actually have biometric systems in place because otherwise also their social security number system would completely break. But that's not rolled out globally. So in fact, a good mental model is about 50 % of the global population actually have a digitally verifiable identity.

15:41That's a huge number of people that just don't have it. And so I think United States is pretty good, or at least decent. It's actually not a really good identity solution. Europe in parts is pretty capable. The strongest is India, although there's definitely privacy concerns here because they don't use knowledge proofs and things like that. But for example, India, they have a program called Adhar that also used hours recognition to kind of roll out to the global population. And it really accelerated the whole economy like crazy. So they had Adhar and then they built UPI on top, which is a payment rail.

16:21And so whenever you talk to people that are in that kind of area of technology, everyone always brings up India as the most prominent example of what identity plus a strong financial rail can actually do to accelerate an economy. And this is what RollCoin is doing. Basically, RollCoin is able to create a deduplication set. So it provides me with the ability to prove that I'm actually unique against everyone else. but then also there's world id which is an identity protocol on top of that and let's start with the basics so the first thing i could do is i could log into twitter and i could say i don't already have a twitter account without actually reeling my name um and then if you think a little bit forward you could even cryptographically sign every tweet you make so that you you kind of lay a trace of like okay this is actually alex versus anyone else and i I think this is really where this is going to go, because this progress around AI is definitely an exponential, so we will get to a place where you will have to authenticate pretty much everything you do on the internet.

17:29So that's the basic, but then with WorldID, which is a protocol that lets you add verifiable credentials and many other things within identity space, you can actually bootstrap a whole identity system on top. So this was like a quick rant. No, it was good. So it's not that it's proving that you are a Joe Weisenthal or a Tracy Alloway. It's proving that there is only one of you without necessarily the ID attached or the name attached. That is exactly. So that is the whole point. But then what WorldID lets you do, so if you're not into crypto, but this whole idea of self-custody is very important, right?

18:14Of course, I'm pretty sure it came up before. What that lets you do is you basically, you verify for Volcon, you receive your World ID. And then it might be that for some applications, you actually want to prove that you're over 18 or you're Joe Weissetal. Then the World ID protocol, which is literally just like an open source protocol and every developer, every company could implement with that. you as a user can then decide to also attach additional information to your world ID. So that is my name or that is my KYC information. And then you can decide to reveal that to some applications with zero knowledge proofs as well.

18:53But no one other than you actually has that information. So I think, God, I have like hundreds of questions. There are so many different ways. So, you know, one basic, but one idea, you keep mentioning zero knowledge proof And just to sort of like the basic idea, and this is the short is like, you know, I go to websites sometimes, government websites, you enter in your social security number. But the idea is with a zero knowledge proof, it would be I prove to the government that I know my social security number without telling the government what my social security number is. Well, I mean, that one is actually tricky because in that case, you would reveal the social security number.

19:30What is a much better way to explain it is the website asks you, are you on any kinds of sanction list? Or are you over 18? Or are you actually a US citizen? And then these things you could prove of zero knowledge. And then basically what comes out of this is like a proof runs on your phone that you're not included in a sanctions list. let's say, and that the only thing that comes out and ends up with the website is yes or no. But the website does not know what is the social security number you checked against.

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22:16And I'm like totally up for it. And even I'm like, you know, a little bit anxious about it. But how do you establish – so there's no – unlike, say, Clear at the airport, which also uses an eyeball scan so you can go by security, there's no centralized database of our irises. And how do you sort of like establish or prove to people that there's no database? Because if my understanding, there has been reporting that at least at some point in the process of the development of WorldCoin, as you've grown as a startup, that at one point, or at least currently, there was a Iris database. Okay, so there's many things here.

22:55Yeah. I'm going to start with explaining how to develop comfort around the idea and why it's necessary. Sure. First of all, I hated the idea of building the orb. When we actually started working on Rollcoin, it was absolutely horrific because we've been four people sitting in a small apartment in San Francisco. And the idea of building hardware devices that take biometric data and roll them out globally was a horrific idea back then. One, because it's very complicated, expensive. Yeah, I imagine pitching that one to VCs would be kind of tricky, right? Oh, it was horrific. It was horrific. It was in the middle of, it was also like, I mean, Bitcoin is also a crypto project.

23:40And we started in like in the middle of a bear market. So I remember back then when we talked to the first investors, they're like, okay, like other than Ethereum or Bitcoin, nothing will exist. Like all of this nonsense. What do you talk about AI also? No one cares about that also. Like, what are you even doing? But again, so neither me or anyone else was really excited about building a hardware device. But really, we spent almost a year doing research in pretty much everything you could do to solve the problem. And solving that problem is, okay, issuing a privacy-preserving identity that works globally, not only in the United States, not only in Europe.

24:24What do we have to do? And there's basically like three big answers to this. One is you use government KYC, right? Which might be a sufficient answer for some parts of the world, but it was pretty shocking to realize for how few, right? So kind of that very quickly disqualified. Second is what people call web of trust. So this whole idea that you're just like, you build reputation up between people and that also like in short, just didn't work. And then the third is biometrics and everything that surrounds that whole field. And within biometrics, we then build prototypes for pretty much everything you could imagine.

25:08We build palm scanners. We build kind of a face ID-like implementation of it. We build fingerprint scanners, all these things. But the short of it is to solve this deduplication problem, so this uniqueness check, you need a lot of entropy. so information about each user. If you don't have that, your error rate explodes exponentially. And so simple example, if you would use Face ID to solve the same problem, after tens of millions of users, you would have to reject everyone. So you don't have a constant error rate. You don't have like 5 % that we constantly reject, but you just hit a wall and your system breaks.

25:49And so faces work, same is true for fingerprints. and the only thing that really works is and is proven to work is IRIS recognition. So that's why we ended up there. And then even with IRIS recognition we even had to build our own hardware. We had to build our own lens, which sounds absolutely ridiculous, but we kind of had to build this whole device from the ground up to make that happen. So much to the why. And how do we get people or how do we think about this whole headline of comfort around this? there's a couple things. One, actually built a privacy-preserving system that goes way further than what you're used to.

26:30And that's, I think, really what we did because there's no information about you that you actually reveal by using WorldCoin. And I think that's pretty remarkable. It's definitely counterintuitive because you're like, okay, we use eyeball scanning. So this is headline one. Headline two, and that's a journey for sure, is open sourcing everything. I think that's one of the core parts of the crypto ethos is just you don't have to trust, but rather you can verify. And the hardware is completely open sourced already, the software to meaningful parts, the protocol completely. So everything will be open sourced in the coming months.

27:15And so that's answer two. and then three, it actually is way less of a thing than you would think. So we have now 1.7 million users, roughly 600 ,000 of them that use the app on a monthly basis. I travel the world very frequently. I talk to a lot of users on the ground and just try to understand what's your feeling, what do you understand, what do you not understand. And it is very much, yeah, like broadly speaking, Globally speaking, this is way less of a concern, which obviously does not lower our bar, but it's the case. So I have two things on that, and I think they're sort of related. But one, why does open source seem to be such a thing in AI in particular?

28:04And then secondly, what is the crypto role in this project? Because, you know, we mentioned WorldCoin. I can only imagine what it was like pitching to VCs in the midst of crypto bear market, saying we want to scan everyone's eyeballs. And oh, by the way, there's also like a crypto element to this as well, a token. Why have that component of it? I mean, at this point, I'm actually not an AI expert anymore, because I think I'm basically two years out of the field and pointed to crypto, which is an interesting journey also. But soon you'll be going back into AI, probably. That's what all the crypto people are doing now, right?

28:46Well, no comment. I'm joking. So why is open sourcing such a thing? It is basically around AI specifically. It is that you have a technology that is probably as foundational as electricity, as literally, it's still, I think, incomprehensible to people. What a big deal this is, right? This is one of the biggest paradigm shifts in technology that happened ever. And there's different approaches of how to deal with this and all the underlying risks. And basically, two different lines of thought is, one is you open source everything. Everyone should be able to verify and understand how everything is happening.

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29:32And then the other is, well, you actually kind of have to lock down these models because if it ends up in the wrong hands, then maleficious actors have a lot of power. And I think OpenAI is definitely in the center of discourse because it started with open sourcing. And then the team realized throughout the years that actually this whole premise of open sourcing is probably a terrible idea. So that's why it's a discussion within AI. Within crypto, it is just that the whole thesis of crypto is that you build actual protocols, not companies. So you build systems that are not dependent on a small group of people, can be completely verified and can run over decades without being interrupted by ML.

30:22And that's open source. It's just like the core of this together with decentralization. So I think that's AI and crypto. I actually do think with an AI, it's a very overblown discussion. I think within crypto, it's the core thesis almost. And so the crypto element with WorldCoin, as I understand it, is to insert a degree of, I guess, community control over that technology, right? There's some talk about the tokens coming with voting rights and things like that. There are so many things there, actually. One is, I think, crypto. And that's something that is, if you're not deeply in this space, that is hard to realize what a big deal this is.

31:08But it is this idea that tokens build business models for networks almost. So you don't have a company, but rather you have, let's say Ethereum. Ethereum is a very powerful protocol but it has kind of an underlying business model but it's not that Vitalik gets rich by that it is fees on the system well he did but because he was early not because now he still makes money it's not that the company is printing money and Vitalik gets rich every month but rather you have a token and you have a fee structure and as the utility increases the network can basically sustain itself so it can sustain its security it can sustain its operation and things like that.

31:53So you basically find a way how you fund a decentralized operation and let it sustain over time. And that is one of the big core things here.

32:09When Rolecon works, it's really foundational infrastructure. I think, without being overconfident, I think it is a very big deal because it's a very foundational piece of technology. that just doesn't exist right now, that should not be in the hands of a few people, but rather it should be governed by a wider group of people and it should actually be decentralized. So also that it cannot break just if I'm in a bad mood, let's say. That would be definitely. So instead of having like a centralized actor who controls the orb, which is a sentence I didn't think I would say today, you have this decentralized group of investors slash stakeholders is that how it works yep got it this is like the sparks now like a whole other part of conversation but um basically how it works is so the orb is open source hard advice right now the company that i'm the ceo of tools for humanity is the only ones that produce these orbs but this will change so you will have like if you fast forward two three years in the future you're gonna have many companies that produce their implementation of the orb following the same standards that connect to the Volcon protocol.

33:24So you basically have - So Apple could produce an orb, theoretically one. Apple, Microsoft, like whatever. They could produce their own orb, follow their own standards, make it, design it the way they want. But it will connect to the protocol and that will allow for just a very foundational protocol on the internet that everyone can use that doesn't break. and the token distributes the governance and also the incentive mechanisms all around the same goal.

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36:13So, I mean, you talked about the importance of like, okay, if this is going to be this foundational infrastructure that everyone uses in some way to verify themselves or whatever, and also is the sort of rails perhaps for some universal basic income that we all need because, you know, AI is going to put half of us out of jobs in theory. Like, okay, it better be like not just controlled, no offense, by Alex Blagna and Sam Altman. Like, that would be kind of weird. But how do we know that's not the case? And I want to go back to a question I asked specifically about, like, in the past, like, have you had a Iris database?

36:49So how it works is, and that's not a secret. Basically, when you verify with RollCoin, quickly go to the flow. So let's say you hear about RollCoin, you're excited about it, whatever, you want to sign up. You download an app. Right now, there's only one app that lets you do that, but soon that also will change. So right now that app is called a rolled app. It's a non-custodial wallet. You click verify now. A map pops up. Hopefully we were near you. You go to an orb and then you show QR code to open 30 seconds later. You receive your rolled ID and you also receive RollCoin on a rolling basis. Every week you receive a small part of RollCoin.

37:34and in that signup flow because we're in beta we actually did not launch yet the launch is something that's going to happen reasonably soon it's also why we talk right now it's a very important moment in time for us you had two options opt-in or opt-out opt-out is basically we don't have any data of you opt-in means we basically have custody of your data for the reason that the neural networks that are on this device right now are still in development And so if you opt out, it could happen that you have to re-reify in a year or so because we basically just updated the model as we went. But where this is going is very clearly, and I think actually launch, it will be completely opt out.

38:21This is just the nature of being in beta and developing technology as we go. So I take the point that you're in beta at the moment, but, you know, the arc of recent technological innovation seems to be that people often come up with something with the best of intentions or in order to solve an identified problem. And then it often gets used in the worst possible way. So what's like the terrible use case arc of this technology? Because one thing that springs to mind and, you know, we could talk about robot invasions and like Terminator style AI takeovers. But like one more realistic thing that would spring to mind is, OK, you set something like this up.

39:06And then as you walk through a shopping mall, you know, there's some other technology that's scanning your eyeballs, identifying who you are and maybe pitching targeted ads or something like that. Like, how do you separate the identity verification from companies using that for other purposes? Yep. So we actually have a quite in-depth work stream in the company right now in Tools for Humanity, and we will publish this as we go. We try to come up with the worst, weirdest scenarios of whatever, China's attacking the network with billions of dollars. What could actually happen? What could go wrong?

39:51So the thing is, given seer knowledge proofs separate your wallet from the uniqueness check, the only thing that could happen, and to be clear, in some cases that actually, if you think 10 years in the future and you think Roku and this is a very powerful technology, that could actually be bad, is people could say, okay, that individual is verified with Roku and yes or no. you could definitely think of scenarios of like okay China is banning Rollcoin because it's literally the anti-thesis of what they're building with their identity system because it's privacy preserving that you might actually have or it might be bad for you to be verified with Rollcoin so there's some scenarios here but I think that's pretty much the worst case scenario you're looking at because otherwise the only let's go even to the far extreme, which to be very clear is not what is the case, but let's say there would be like a huge database of biometric images of all users.

40:57It's not connected to your actual account. So you still have the most, there's like multiple layers of privacy in between, but then make sure that nothing really bad is happening there. well i'm gonna go into a slightly macabre arc of this or maybe sci-fi angle but since we're just talking about bad things happening i'm just gonna go there which is eyeball theft someone cutting out uh if a really important person who uses world coin to verify themselves on some network a criminal attacker physically maiming someone. Like, I imagine these sorts of scenarios are digging up the dead for their eyeballs.

41:45These must come up in your conversations about really extreme scenarios. Can you talk about some of these sort of like weird out there physical risks? Yeah, all of these signups would not work because the orb would realize that you are, or that person's, these eyes are not alive. and are not connected to an actual alive. This is the moment on All Thoughts when we talk about degenerating eyeball tissue. I think we should stop this whole part of the discussion. No, no, no. I mean, I'm actually like, this is what is a liveness check? And I guess it goes back to your question of like, why eyeballs and not thumbprints or why not fingerprints or face ID or your gait or something.

42:28Like, talk to us about that verification, why the eyeball can't be replicated, why it wouldn't work if not attached to a live person? Like these must come up. This is what would freak me out. Sure. So the device has multiple sensors in front. There's like a lot of compute on this device. There's like a separate GPU and there's seven neural networks that basically at all time run. And what a large part of these networks is doing is just to make sure that whatever we see an actual human being alive, no fraud attack, no kind of weird cases. And then there is in front, there's multiple sensors that make sure that that's the case.

43:10And you could even go as far as like an AI trying to attack the system, because that can also happen in the future, right? So all of that should not happen. And so what the orb does, it images multi-spectral. So what that means is across multiple wavelengths in the electromagnetic spectrum, all at the same time. And this is just like, you can think of very sophisticated optical table attacks. Like I did a lot of this physics when I was younger. You can think of these things, but it's extremely expensive. And I think even that will not be possible in the future. So So it's just really, really hard to fool this device.

43:53I mean, of course, to be clear, the infrastructure is there. Like the neural networks are still, we are still building that up. So right now we are actually aware of a couple of attacks that can still happen and that will still be the case for the next year. Like all of this technology is not perfect yet, so it will still take time. But at least the technology is there to make sure that none of these attacks will ever go through. So setting aside the worst case scenarios, maybe a slightly easier question, but what is the path to adoption that you see here? Because there are a lot of things it feels like to overcome.

44:29One is the creepiness factor of having your eyeballs scanned. But secondly, if you're touting this as a way to identify people who might be in need of some sort of official identification in countries that don't necessarily have those systems yet or have subpar systems, I imagine there has to be a reason why they would want to have this done. In most places, in almost all places in the world, no one is getting universal basic income yet. So what is the path to adoption and what are the incentives for people to do this? Right. This is kind of the everything question. Like, of course, if I would have the perfect answer to this, I would tweet it out.

45:17That's a good answer. I can be the answer to every question we've ever – yeah, keep going. This is why we're worried about being replaced. We don't need – or this is why I'm worried. Anyway, sorry, keep going. Okay, so there's a couple different arcs to the response to this question, right? So one is when we launch, there's going to be a token, a token with a cap supply that will play a very important role in that kind of the whole evolving nature of this project. And when you sign up, you basically receive on a running basis, you receive ownership in the network through the token. And I think that's exciting for a lot of reasons.

45:58One, it's a direct incentive. It's a direct, you literally get money, basically, that you could sell or you could do anything with. So it's already a very small form of, it's not basic because there's not enough money, but it's a small form of UBI in some sense. I think that will motivate a lot of people. And we already see it's moving a lot of people to, we have the crazy, literally, right now is the craziest time for me running this project because it's blowing up. All the dashboards completely go vertical. And we have people flying from Japan to Portugal to sign up and whatever. It's pretty crazy.

46:39So that certainly does something. That's one. Two is, of course, integrations. So making sure that large technology companies or services actually integrate with World ID. It's going to take a while because you have a chicken and egg problem. You need a lot of users for that to be interesting to products and so on and so forth. It's just a little bit of a balancing act. I'm sure it's going to happen. Once that is the case, once you have major integrations, then an actual flywheel is starting because as a user, you will be able to use a lot of services that you're just not able to use without it.

47:21And so that's the short of it. And I have a lot more specific. Specific answers are much more localized as well. So, for example, we are in Buenos Aires, and so we will work on local integrations in Argentina. So it will not start with Twitter or Meta. It will start with, like, very localized applications. But, yeah, that's where it goes. uh since this is odd lots i have a really quick question you know um you built this i'm gonna pick it up again because it's really kind of fun the whole the orb you built this piece of hardware yeah this orb uh do you have any supply interesting supply chain issues in terms of the optics or the semiconductors or i mean it's a and how much is a right now cost to build an orb so we had especially during covid we had yeah crazy supply chain uh crunches So it's like generally, like Elon talked a lot about this in the earlier days, but I definitely also ran into this.

48:23It's like you have a perfect running prototype and then it just feels trivial to produce this thing. But it's just not. It was absolutely terrific. Like we had this prototype and then building up a production line and really being able to produce like thousands of them was a completely different challenge. So that almost took like a year to completely lock this in. And then within COVID, we had crazy supply chain issues, but that's now mostly gone. The industry has completely recovered. What was the hardest component to get?

49:00Oh, man. It was death by a thousand cuts. It was everything from the computing unit to random capacitors, weird ones that we use. We have the actual lens right now is single source supplier, which is something that obviously has to change. But since we customly had to build this lens, there's only one company in the world that builds that lens. So that was a really tricky one to kind of ramp it up over time. How much does it cost right now? Right now is still, we're still pretty expensive. But honestly, it doesn't really matter because so right now it's like four thousand, four to five thousand dollars, depending on the exact batch.

49:47It's coming down to be around one thousand five hundred dollars at mass manufacturing. And I think in a couple of years, it's going to be below five hundred dollars. We got to put the orb into the Fed's inflation basket. We're getting so much better at producing eyeball scanning orbs. Yes. Yes. Healthcare and medical care massively inflated, but we can all scan our eyeballs at cheaper Cheaper and cheaper every year. Excellent. Alex Banya, this was such a fascinating conversation. It's like, I mean, there's like a million more things I could want to ask and maybe we'll have you back in a year. And then in two years when we're all on UBI because we've been put out of work by AI.

50:25And so, you know, whatever it is. But this was far and away our most futuristic sci-fi-ish conversation we've ever had. Not something I would have ever contemplated in the past. So thank you so much for coming on Alba. Amazing. I take that as a compliment. Thanks for having me. Yeah, absolutely. Without question. Yeah, that was really interesting.

50:56Tracy, are you going to get scanned? You know what? I think I'm going to wait a little bit until there's some visible upside for me, which is kind of that last question that I asked Alex, which, you know, I am reasonably, I understand the use case of having some sort of like wallet or portable identification that you can take with you across the internet and like various outlets. That kind of makes sense to me. And I think we've spoken about that use case before. However, at this point in time, I don't see a lot of upside. You know, maybe it would be easier to file some claims against Twitter for like bot copycats, but it's not much.

51:40Yeah, but and to your point, though, like or and really or sorry to Alex's point, like it's on Twitter. Like, do they want to integrate the WorldCoin API? Yeah, which I don't actually get the impression that like I'm it doesn't seem like any of the big networks like are anywhere like that's on the roadmap of anyone. Well, this is the other thing I'm thinking about is, you know, part of the world coin use case is this decentralization aspect of it. But what we've seen time and time again throughout history is that the world tends towards middlemen and verification of some sort. So I can imagine a future where maybe you do get your eyeball scanned, but maybe it's not by WorldCoin or a decentralized entity.

52:25Maybe it's Twitter itself. And this is even more dystopian. You know, like Twitter keeps its own database of your eyeballs. Well, that's the thing. Like I use Clear. You know, like I already like scanned my eyeball at the airport and it's like, oh, it's$100. That's a centralized database. I save a few minutes. It's like I've already – when it comes to privacy, I've already like basically given it – up to save about five minutes in an airline. So I guess I'm just like, yeah, you know, I'll get scanned. Why not? But I'm skeptical. You know, actually, honestly, it's not even like the privacy or anything like that or like the dystopian scenarios so much as like I don't really want a scenario in which like computers put us all out of jobs and we need the UBI.

53:07And I think we didn't really get into like this scenario in the future. Like where will the political impulse from UBI come from it'll come from in an economy that's so lopsided in who reaps the benefits of ai that we like have to have it for political stability which that's like the scenario that like freaks me out more than anything right in the future where you really need world coin like the most insidious thing is that you need it because no one has jobs that's right right like more than anything else the scan the whatever it's this scenario in which like oh i need to like get my ubi from like somewhere and like they tax Sam Altman so that we can all like, that's like the part more than the scan or the privacy or the, you know, the digging up the dead that freaks me out.

53:48Yeah. I'm telling you great business model, create the problem and the solution on that happy note. Shall we leave it there? Let's leave it there. All right. This has been another episode of the all thoughts podcast. I'm Tracy Allaway. You can follow me on Twitter at Tracy Allaway. And I'm Joe Weisenthal. You can follow me on Twitter at the stalwart. Follow our guest, Alex Blagna. As he said, he might just tweet it out. He might just tweet out the answer to all of these things. He's at Alex Blagna. And follow our producers on Twitter, Carmen Rodriguez at Carmen Armin and Dashel Bennett at Dashbot.

54:20And follow all of the Bloomberg podcasts under the handle at Podcasts. And for more OddLots content, go to Bloomberg.com slash OddLots, where we have a blog, we have a transcript, and a newsletter that comes out every Friday. And check out our Discord. It's super fun. People chatting about odd lot stuff with other listeners 24-7. Go to discord.gg slash oddlots. Yep, the Discord is very fun. You should also stream Bloomberg Originals on Apple TV, Samsung, Roku. Tune in at 10 p.m.

55:22This is Jim. Hello. Jim started advertising with iHeartRadio way back in April. And now... I have customers out the door! And this is Sarah. Hi. She started putting a portion of her marketing dollars in podcasting back in June. Business is booming. That's why I'm working on a Saturday. Want to be like Jim and Sarah? It's easy. All you have to do is own or manage a business and reach out to iHeart. Get started today at 844-844-IHEART or iHeartAdvertising.com. Maybe you already know about naked short selling. Maybe you've personally shorted stocks yourself. But do you know about the time short sellers ruined a Super Bowl, basically?

56:03For me, I was a little late, but red flags went up like, what is going on? This is really scary. At Planet Money, we get the story behind the money to explain how money works. Listen on the NPR app or wherever you get your podcasts.

From the publisher

There are all kinds of societal concerns emerging out of the rise of artificial intelligence. Will it put us all out of work? Will fraudsters be able to use deepfakes — technology that can replicate our images and our voices — to scam us? We're in uncharted territory and nobody knows for sure how society will negotiate these risks. While many people are familiar with ChatGPT, its founder Sam Altman also co-founded Worldcoin, which aims to mitigate these risks. Enter: The Orb, an eyeball-scanning device that could provide everyone with a unique personal identifier. Think a global social security number, except you never have to share what it is with anyone. On this episode, we speak with Alex Blania, the CEO and co-founder of Tools For Humanity, the developer behind the Orb and the Worldcoin project, on his company's vision for how this tech can be used for things like proving one's humanness or collecting a Universal Basic Income in a world where AI predominates. 

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