Worldcoin vs Ethereum: Which One Is Better at Making Crypto for Financial Inclusion a Reality?

A while back, I tried to explain Ethereum financial accessibility to a friend who had never used crypto before. His response?

A while back, I was trying to explain Ethereum financial accessibility to a friend who'd never used crypto before. When I finished describing how you'd need to set up a wallet, pay gas fees, and understand smart contracts, his response was simply, "Wait, so I need to do all that… just to move my own money?"

It was then that it really hit me—for all its might, Ethereum is still not exactly beginner-friendly. Now, I'm not saying that's a bad thing. We need institutions like Ethereum, with their massive DeFi presence and potential for institutional integration, to create the backbone of the crypto economy.

But if we're talking about crypto for financial inclusion, we also need something else. We need a technology that can be accessed by billions of people, regardless of their technical expertise or location.

This brings us to the big question: Worldcoin vs Ethereum—which one is better at making crypto for financial inclusion a reality? Both take different approaches, and depending on what you value most—decentralized finance for global access or a seamless user experience—your answer may vary.

Ethereum: The Financial Giant with Unmatched Liquidity

If you're looking for a deep ecosystem of lending platforms, liquidity pools, or Ethereum DeFi solutions that rival traditional banks, then we're in agreement.

I've personally used Ethereum-based apps to borrow against my crypto holdings without ever talking to a bank—something completely unthinkable just a decade ago.

Now, to understand why Ethereum is often touted as the best crypto for financial inclusion, we need to consider several key factors.

The Importance of Scaling Solutions and Gas Fees

We've seen a huge improvement in Ethereum financial accessibility with the advent of Layer 2 networks like Arbitrum and Optimism. These scaling solutions significantly reduce gas fees and make transactions more affordable, especially for smaller amounts.

However, even with Layer 2s, gas fees and transaction costs remain a point of contention, especially in comparison to centralized financial systems.

Furthermore, the technical knowledge required to navigate the Ethereum ecosystem can be daunting for newcomers. Setting up a wallet, understanding gas fees, and interacting with DeFi protocols all present learning curves that might discourage less tech-savvy users.

The Best Crypto for Financial Inclusion Needs Liquidity

But where Ethereum lacks in user-friendliness, it more than makes up for it in liquidity and DeFi integration.

From Uniswap's decentralized exchange to Aave's lending platform, the Ethereum DeFi ecosystem is unmatched in terms of the variety and depth of its financial solutions.

This liquidity is crucial for enabling large-scale financial access. With billions of unbanked individuals globally, we need a financial system that can handle massive numbers of users without compromising on speed or efficiency.

The promise of interoperability and smart contracts also allows for seamless cross-border payments, microfinance options, and new types of financial products—all powered by a decentralized and transparent network.

Finally, institutions are increasingly exploring the possibilities of Ethereum's ecosystem for real-world asset (RWA) tokenization, further bridging the gap between traditional finance and blockchain technology.

This integration is essential for enabling large-scale capital flows and facilitating the adoption of cryptocurrencies by the mainstream financial system.

Worldcoin: A Bold New Take on Crypto for Financial Inclusion

I remember the first time I saw a Worldcoin Orb—it looked like something straight out of a cyberpunk movie, scanning passersby to verify their identities.

At the time, I was skeptical. The idea of Worldcoin identity verification through biometric scanning sounded too wild, too futuristic to be true. But the more I learned about the project's goals and the problems it's trying to solve, the more I realized: this could work.

One of the biggest challenges we face in an AI-driven world is how to effectively distinguish between humans and machines. This is especially important in the realm of financial access, as bots and other forms of AI could easily be used to exploit or manipulate the system.

This is where Worldcoin's World ID comes in. By combining unique biometric scans with an immutable record on the blockchain, Worldcoin can create a robust and verifiable identity system that is resistant to fraud and abuse.

Now, to fully understand the differences in our Ethereum vs Worldcoin comparison, we need to consider their approaches to financial inclusion.

While Ethereum is focused on decentralized finance and providing the technological foundation for a new financial order, Worldcoin takes a more consumer-centric approach, aiming to simplify crypto for everyday users.

Having personally helped a few friends set up their Ethereum wallets and witnessed their struggles with gas fees and technical jargon, I can attest that the learning curve is steep.

In contrast, Worldcoin's mobile app is designed to be user-friendly, requiring no prior knowledge of cryptocurrency or blockchain technology.

Moreover, while Ethereum is a Layer 1 blockchain, Worldchain (Worldcoin's blockchain) operates as a consumer-focused Layer 2,