Jack Dorsey is constructing ‘Web5’ powered by Bitcoin

Block subsidiary TBD has introduced plans to construct a brand new decentralized internet centered round Bitcoin (BTC), underscoring founder Jack Dorsey’s perception that the biggest blockchain community will play a significant position within the web’s evolution. 

The brand new undertaking, referred to as “Web5,” represents the newest Bitcoin-centric endeavor to be pursued by Dorsey since stepping down as CEO of Twitter in November 2021.

Whereas Web3 incorporates blockchain expertise and tokenization to decentralize the web, Web5 is being envisioned as an identity-based system that solely makes use of one blockchain: Bitcoin. Twitter person Namcios broke down the idea of Web5 in a collection of tweets that described a number of software program parts working collectively to reinforce the person’s expertise and allow decentralized identification administration.

Block has a lofty imaginative and prescient of “evolving the Internet” by prioritizing identification administration. Supply: Block

In response to Namcios, Web5 makes use of ION, which they describe as an “open, public and permissionless DID community that runs atop the Bitcoin blockchain.”

The Web3 Basis describes DIDs as decentralized identifiers that allow “verifiable, decentralized digital identification.”

Web5 is actually a decentralized internet platform, or DWP, that permits builders to create decentralized internet apps through DIDs and decentralized nodes, in line with TBD’s prototype paperwork. Web5 will even have a financial community centered round BTC, which mirrors Dorsey’s perception that the digital asset will at some point turn into the web’s native foreign money.

Associated: Jack Dorsey’s Block hits $1.3B in Q1 earnings, $43M in BTC buying and selling income

Dorsey’s motivation for pursuing a brand new internet improvement mannequin might stem from his perception that Web3 won’t ever obtain true decentralization. The Block CEO has publicly criticized Web3 and the enterprise capital neighborhood that helps its improvement. In December 2021, Dorsey tweeted that people don’t personal Web3 — VCs and their restricted companions do. “It is going to by no means escape their incentives,” he mentioned. “It’s finally a centralized entity with a unique label.”