Block Inc. is looking to bypass Web3 entirely and focus on a new Bitcoin-centric model for identity management.
Block subsidiary TBD has announced plans to build a new decentralized web centered around Bitcoin (BTC), underscoring founder Jack Dorsey’s belief that the largest blockchain network will play a major role in the internet’s evolution.
The new project, called “Web5,” represents the latest Bitcoin-centric endeavor to be pursued by Dorsey since stepping down as CEO of Twitter in November 2021.
Whereas Web3 incorporates blockchain technology and tokenization to decentralize the internet, Web5 is being envisioned as an identity-based system that only utilizes one blockchain: Bitcoin. Twitter user Namcios broke down the concept of Web5 in a series of tweets that described several software components working together to enhance the user’s experience and enable decentralized identity management.
According to Namcios, Web5 utilizes ION, which they describe as an “open, public and permissionless DID network that runs atop the Bitcoin blockchain.”
1/ Jack Dorsey’s @TBD54566975 unit has just announced it is building “Web5”.
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
— Namcios (@namcios) June 10, 2022
The Web3 Foundation describes DIDs as decentralized identifiers that enable “verifiable, decentralized digital identity.”
Web5 is essentially a decentralized web platform, or DWP, that allows developers to create decentralized web apps via DIDs and decentralized nodes, according to TBD’s prototype documents. Web5 will also have a monetary network centered around BTC, which mirrors Dorsey’s belief that the digital asset will one day become the internet’s native currency.
Related: Jack Dorsey’s Block hits $1.3B in Q1 profits, $43M in BTC trading revenue
Dorsey’s motivation for pursuing a new web development model may stem from his belief that Web3 will never achieve true decentralization. The Block CEO has publicly criticized Web3 and the venture capital community that supports its development. In December 2021, Dorsey tweeted that individuals don’t own Web3 — VCs and their limited partners do. “It will never escape their incentives,” he said. “It’s ultimately a centralized entity with a different label.”
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…
— jack (@jack) December 21, 2021
