TBD, Jack Dorsey’s Bitcoin-focused business arm and a subsidiary of Block Inc., revealed recently that it is developing a new decentralized web: Web5.
Web5 is predicated on the belief that Web3, the concept of creating a decentralized web utilizing blockchain technology and cryptocurrencies, has good intentions but employs the wrong tools.
Web5 uses Bitcoin, the decentralized monetary network, plus a slew of excellent computer science technologies to establish a new ecosystem of decentralized identities, data storage, and apps in which the users have ownership over their personal data.
Decentralized innovations on the internet over the last several decades, such as BitTorrent, have shown that blockchain technology may not be required for decentralization. Rather, the blockchain has been believed necessary for: mitigating the double-spend issue in order to effectively transfer peer-to-peer money with Bitcoin.
Web5 from TBD is comprised of software components and services such as decentralized identifiers (DIDs), decentralized web nodes (DWNs), self-sovereign identity service (SSIS), and a self-sovereign identity software development kit (ssi-sdk). These components allow developers to concentrate on creating user experiences while allowing decentralized identification and data storage in apps more effortlessly.
What exactly is Web 5.0 (Web5)?
TBD, Jack Dorsey’s crypto company, recently announced the introduction of Web5. According to their official website, the objective is to create an additional decentralized web that puts you in control of your data and identity.
According to the official website:
“The web democratized the exchange of information, but it’s missing a key layer: identity. We struggle to secure personal data with hundreds of accounts and passwords we can’t remember. On the web today, identity and personal data have become the property of third parties.
Web5 brings decentralized identity and data storage to your applications. It lets devs focus on creating delightful user experiences while returning ownership of data and identity to individuals.”
Web5’s mission is to produce a one-of-a-kind collection of tools built on Bitcoin that will transform the financial system as we know it. This would enable investors and people to preserve and own their data and maintain control over all of their relationships.
One of the primary differences between Web5 and Web3 platforms is that Web 3.0 platforms are often more centralized in terms of what users believe, despite marketing attempts to the contrary. According to Jack Dorsey, Web 3.0 technologies are built on single point of failure systems, citing Solana (SOL) and Ethereum as examples (ETH).