As organizations increasingly integrate biometric data into various applications, from access control to financial services, the risks associated with data breaches are escalating. On May 15, the Worldcoin Foundation, overseeing the Worldcoin iris biometric cryptocurrency initiative, disclosed the open-sourcing of its secure multi-party computation (SMPC) system. This innovative system encrypts iris codes into secret shares distributed among multiple parties, enabling the secure deletion of iris codes generated through its previous uniqueness verification system.

Remco Bloemen, the head of protocol at the Worldcoin Foundation, highlighted the significance of open-sourcing the SMPC system in enhancing biometric data security. This strategic move aims to fortify the integrity of the Worldcoin protocol while establishing a new benchmark for security standards. Moreover, the Worldcoin Foundation emphasized that its SMPC approach is designed to withstand quantum computing threats, providing an additional layer of protection against evolving cybersecurity challenges.

A market analysis by Fortune Business Insights forecasts substantial growth in the global biometric system market, projecting a surge to $76.70 billion by 2029 from $30.77 billion in 2022. However, research conducted by MIT's Stuart Madnick has unveiled a troubling trend of escalating data breaches, with a 20% increase observed between 2022 and 2023, resulting in a doubling of affected individuals.

Jannick Preiwisch, the data protection officer at the Worldcoin Foundation, underscored the community's dedication to advancing privacy-centric technologies to foster online trust and facilitate global economic inclusivity. He emphasized the development of the new SMPC system as a testament to the foundation's commitment to adhering to data protection regulations, notably the EU General Data Protection Regulation (GDPR). Preiwisch also highlighted that the new system aligns with Worldcoin's initiatives to empower users with greater control over their data, offering options for personal custody and the ability to revoke World IDs.

Despite encountering regulatory obstacles, particularly concerning GDPR compliance, Worldcoin has proactively addressed these concerns. In March 2024, the foundation open-sourced the software of its iris-scanning Orb and introduced a "personal custody" feature to enhance user data privacy. Subsequently, in April, plans were unveiled to strengthen privacy measures and enable users to revoke their World IDs. Despite regulatory challenges, Worldcoin achieved significant milestones in early 2024, surpassing one million active daily users for its wallet app and witnessing a remarkable 141% surge in its token WLD.