The world file stores the packages which you have installed (emerged) yourself as opposed to any packages that were installed through dependencies. The file /var/lib/portage/world is the actual world file; /var/cache/edb/world is the old location used in previous versions of portage (as far as I know, you can delete this file).
If you do 'emerge -u world' the packages in your world file will be updated with possible new (stable) versions. In the process, any required dependencies will also be pulled in. Any other dependencies will not be updated however, even when there are more recent (stable) versions in portage. For this you can use 'emerge -u --deep world'.
You'll understand that it would not be wise to delete the world file.

In some cases, however, you can delete single entries from the file if you want to speed things up by keeping your world file as small as possible. (For example: if you have done 'emerge digikam digikamimageplugins', both packages will be in your world file. But in fact only digikamimageplugins is required because it depends on digikam.) But unless you absolutely know what you're doing, I advise you to stay away from the world file.
Gentoo (64 bits) on AMD64 X2 4400+, MSI K8T Neo2-FIR, 2 Gb RAM, 320 + 160 Gb SATA, nVidia Geforce 6600