Block Inc. plans to completely abandon Web3 in favor of WEB5, a new Bitcoin-centric identity management model.
TBD, a Block subsidiary, has announced plans to build a new decentralized web based on Bitcoin (BTC), reiterating founder Jack Dorsey’s belief that the world’s largest blockchain network will play a key role in the internet’s future.
Dorsey has investigated a number of Bitcoin-related ventures since stepping down as CEO of Twitter in November 2021, the most recent of which is called “Web5”.
Web5 is envisioned as an identity-based system that only uses one blockchain: the Ethereum blockchain. Bitcoin
Web5 is envisioned as an identity-based system that only utilizes one blockchain: Bitcoin. Whereas Web3 employs blockchain technology and tokenization to decentralize the internet, Web5 is envisioned as an identity-based system that only uses one blockchain: Bitcoin. Namcios, a Twitter user, described how many software components work together to improve the user’s experience and enable decentralized identity management in a series of tweets.
According to the Web3 Foundation, DIDs are decentralized identifiers that enable “verifiable, decentralized digital identity.”
1/ Jack Dorsey’s @TBD54566975 unit has just announced it is building “Web5”.— Namcios (@namcios) June 10, 2022
This new decentralized web leverages #Bitcoin to put users back in control of their data and identity - once and for all.
Here’s a thread with all you need to know 🧵… pic.twitter.com/TpW8OvuyKX
Web5 is a decentralized web platform, or DWP, that allows developers to create decentralized web apps using DIDs and decentralized nodes, according to TBD’s concept paper. Web5 will also have a Bitcoin-based monetary network, confirming Dorsey’s prediction that the digital currency will one day become the internet’s primary currency.
Because he feels Web3 will never achieve complete decentralization, Dorsey may be tempted to pursue a new web development approach. The Block CEO has openly blasted Web3 and the venture capital sector that supports its development. Web3 is owned by VCs and their limited partners, not individuals, according to Dorsey, who claimed this in December 2021. “It will never escape their incentives,” he said. The author describes it as “just a centralized entity with a new label.”