Everything You Need To Know About Jack Dorsey’s Web5

When did we skip Web4? The cryptocurrency world was thrown into a frenzy after former Twitter CEO Jack Dorsey announced that Block subsidiary TBD is building Web 5. This article looks at what Web5 is all about and why it was created. 

For a while now, one of the biggest narratives in the cryptocurrency space has been the idea of changing how things work on the internet and moving away from the limitations of the initial conceptions of the World Wide Web to a more decentralized version powered by blockchain technology. This new idea is known as Web3. As a result, applications have been built and consistently released on smart contract blockchains such as Ethereum, Binance Smart Chain, and Solana. From Decentralized Autonomous Organizations (DAOs) to non-fungible tokens (NFTs) and the Metaverse, blockchain technology is being used to reimagine how companies operate, ownership works, and reality is appreciated on the internet. 

That was the main narrative of how blockchain was changing the Web until Jack Dorsey’s latest announcement. On June 10th, 2022, the former Twitter CEO announced that Block subsidiary TBD plans to build a new decentralized web centered around Bitcoin called Web5. 

The new announcement started several conversations around the future of the internet and several speculations on why Jack decided to bypass Web3 to build a new Bitcoin-centric imagination of essential aspects of the internet. 

What Really is Web5? 

As part of the announcement of Web5, the TBD account shared a presentation on Twitter dubbed “Web5: An extra decentralized web platform.” The heavily technical presentation breaks down the concept of how Web5 combines the best parts of Web2 and Web3 to create a new paradigm. If you didn’t catch it, Web2 + Web3 = Web5 (sorry Web4). 

The core idea of Web5 is to create a platform that enables the creation of applications that allow users to save and control their data by themselves. An attempt to ensure true decentralization and maximize privacy on the World Wide Web. 

Jack Dorsey’s Web5 has three main pillars -Decentralized identifiers, Verifiable credentials, and Decentralized Web nodes. Web5 uses an open and public permissionless DID network that runs on the Bitcoin blockchain. 

DIDs, decentralized identifiers, are popularly used in Web3 to create a decentralized digital identity. With Web5, developers can make decentralized apps (DApps) or decentralized web platforms (DWPs) with DIDs and decentralized nodes. Also, monetary-related activities on Web5 will be centered around Bitcoin, as the native digital currency of the new Web. 

Why Did Jack Dorsey Create Web5? 

Jack Dorsey is one of the most prominent critics of the current state of Web3. According to Dorsey, Web3 will never attain true decentralization. The Block CEO has bashed Web3 platforms and the over-involvement of venture capital in the sector. Dorsey made a tweet in December 2021 stating that the community does not own Web3, but VCs do. 

“You don’t own ‘web3.’

The VCs and their LPs do. It will never escape their incentives. It’s ultimately a centralized entity with a different label. 

Know what you’re getting into…”

Based on this criticism, it is safe to say that a major reason for the creation of Web5 is the lack of decentralization of Web3 from Jack’s perspective. What’s more, Jack is known as a major promoter of Bitcoin and a strong believer in the idea that Bitcoin is the strongest contender for an internet-native currency. 

“I think the internet warrants a […] native currency and […] Bitcoin is probably the best manifestation of that thus far. I can’t see that changing given all the people who want the same thing and build it for that potential.” – said Jack Dorsey in an interview with Reuters

Web5 moves away from the scattered nature of Web3, where several projects are attempting to pitch their blockchain and native currencies as the major contender for an internet native currency. With Web5, the focus is only on Bitcoin. 

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