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.
Dorsey’s latest venture, “Web5”, is Bitcoin-centric and was launched after he resigned as CEO of Twitter in November 2021.
Web3 uses blockchain technology and tokenization in order to decentralize internet. Web5 uses only 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.
Block believes in “evolving web” and prioritizing identity management. Source: Block
Namcios claims that Web5 uses ION. Namcios describes ION as an “open and public DID network that is permissionless” that runs atop Bitcoin blockchain.
Jack Dorsey’s @TBD54566975 unit just announced that it is creating “Web5”. This new, decentralized web uses #Bitcoin to give users back 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
DIDs are described by the Web3 Foundation as “verifiable and decentralized digital identities.”
Web5 is a decentralized platform or DWP that allows developers to create web apps via DIDs, decentralized nodes and other means, as described in TBD’s prototype documents. Web5 will have a monetary network that is centered on Bitcoin, mirroring Dorsey’s belief that the digital currency will become the internet’s national currency.
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 of web development because he believes Web3 will never reach true decentralization. Web3 has been criticized 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.”
Web3 is not yours. It belongs to the VCs and their LPs. They will not let it go. It is ultimately a central entity with a different name. Be aware of what you are getting into.
— Jack (@jack), December 21, 2021