WHAT YOU SHOULD KNOW ABOUT JACK DORSEY’S WEB5!

While we are still trying to get a hang of web3, Jack Dorsey through his new company, TBD, Block’s business division, has announced Web5. A project he believes is more decentralized than the current web3.

But why Web5 when there is Web3 already?

Jack believes that the current web3 systems are flawed. To every regular user out there, web3 is totally decentralized. However, the truth is, most web3 platforms are controlled by big VC firms in Silicon valley. Jack argues that web3 is not decentralized enough as you can see from his tweet to a twitter user below:

So What is Web5?

Web5 is a decentralized web platform (imagine the WordPress platform but totally decentralized) that allows users(developers to be specific, lmao leave this for programmers. But since we are using Wordpress as a metaphor, imagine yourself building a drag and drop website using wordpress) to build decentralized web apps (the result of your wordpress drag and drop - a website.) while returning ownership and control over identity and data to individuals (now you don’t need to prompt users to login on your site, they just connect their wallet to your platform, granting you access to their data themselves). 

What truly differentiates Web5 from Web3?

Web5 is built on 3 major pillars. Decentralized Identifiers, Verifiable Credentials and Decentralized Web Nodes. Full details below:

Decentralized Identifiers (DIDs)

This is Self-owned identifiers that enable decentralized identity authentication and routing. This implies that you as a user have rights over your data and can only grant these rights to whichever platform you choose to access. So instead of logging into Facebook and having them store your data, you just connect your wallet and give them access to your existing data at that point. Once you disconnect, you are off with your data. Facebook no longer has access to it. This stops multiple sign up and validation in different websites. DIDs are totally self generated and self owned. Your data, in your pocket!

Verifiable Credentials

These are Data formats and models for cryptographic presentation and verification of claims. Platforms like banks can offer this to enable them verify claims. Adrien Brook describes this as NFT but different.

Decentralized Web Nodes

You could literally view this as the current blockchain. TBD in its presentation described it as an emerging standard for data storage and relay that enables entities of any type (people, organizations, etc.) to send and store encrypted or public messages and data, enabling a wide variety of decentralized apps and protocols to be built on top. It is designed to support individuals and companies. 

Will there be Token Investment in Web3?

Mike Brock, Lead at TBD has the following answer: 

One of the major drivers of adoption into Web3 was instant gratification experienced by both the project builder and the community. Community members can easily cash out on projects they invested in.

However, this became Web3’s undoing. Alot of rug pulls started emerging. The most popular being the Squid Coin scam that robbed investors off $3.38 million. Other case scenarios include the UST dump experienced by Terra foundation that led into massive dumping and shorting of Luna token, the Celsius Network’s halting of withdrawal and swap services - some investors' entire portfolios are locked in there and it is triggering  panic. Users who have loans opened there are currently getting liquidated.

Web5 is expected to leverage only Bitcoin to facilitate transactions. This will ensure that developers focus on building value for the long term without launching tokens.

Here comes the big question, why would users and companies port to Web5?

I am sure Jack has his plans before going public. It would be interesting to see how this plays out.