TBD, a subsidiary of Block, has announced plans for a new decentralized internet centered around Bitcoin ( BTC). This reflects founder Jack Dorsey’s belief that the biggest blockchain network will play an important role in the evolution of the internet.
Web5 is Dorsey’s latest venture that is Bitcoin-centric. This new endeavor was launched in November 2021, after his resignation as CEO of Twitter.
Web3 uses blockchain technology and tokenization in order to decentralize internet. Web5 is an identity-based system which only uses one blockchain: Bitcoin. Namcios, a Twitter user, broke down Web5’s concept in a series tweets. He described multiple software components that work together to improve the user’s experience.
Namcios claims that Web5 uses ION. Namcios describes ION as an “open and public DID network that is permissionless” that runs atop Bitcoin blockchain.
1/ Jack Dorsey’s @TBD54566975 unit just announced that it is building “Web5”.
This decentralized web uses #Bitcoin for users to regain control over their data and identities – once and forever.
Here’s a thread with all you need to know … pic.twitter.com/TpW8OvuyKX
— Namcios (@namcios)
June 10, 2022
The Web3 Foundation defines DIDs to be decentralized identifiers that allow for “verifiable and decentralized digital identity”.
Web5 is essentially a web platform or DWP that allows developers to create web apps via DIDs, decentralized nodes and according TBD’s prototype documents. Web5 will also feature a monetary network that is centered on Bitcoin, in line with Dorsey’s belief that the internet’s native currency will become one day.
Related: Jack Dorsey’s block achieves $1.3B Q1 profits and $43M in BTC trade revenue
Dorsey may have been motivated to create a new model for web development by his belief that Web3 won’t achieve true decentralization. Web3 has been publicly criticised by the Block CEO and the venture capital group that supports it. Dorsey tweeted in December 2021 that Web3 is not owned by individuals — only VCs and limited partners own it. He said, “It will not escape their incentives.” “It is ultimately a central entity with a different name.”
You don’t have “web3.”
It is the VCs and their LPs who do it. They will not let it go. It is ultimately a central entity with a different name.
Be aware of what you are getting yourself into
— Jack (@jack)
December 21, 2021