What Is Web5 and How Is it Different From Web3?
The crypto community has been talking for several years about creating a decentralized Internet, which is commonly called Web3. But 2022 the situation began to change, and Web5 began to be discussed.
Unpacking Web5: A First Look
What is Web5? Web5, created by TBD, the bitcoin division of Jack Dorsey’s Block, represents a new vision for the decentralized internet. The platform, built exclusively on bitcoins, is focused on protecting personal data. Its main purpose is to allow the user to control their data and identity.
In short, according to Dorsey, Web3 is not decentralized. Rather of being held by users, it is owned by diverse experience tycoons and limited members.
In the meantime, Web5 is looking to solve these problems. Web5 provides decentralized uniqueness and data hold for your applications. This allows creators to concentrate on making amazing user knowledges while returning data ownership and originality to someones.
The Web5 decentralized web platform uses wallets, decentralized identities, verified credentials, DWNS, and DWAS. Ultimately, it aims to offer users 2 use points: “own your data” and “control your identity.”
Instead of storing his data in multiple applications, Bob can store it in his DWNS. Thus, it can give any music app access to its settings and choices. This allows him to take his personalized music experience wherever he wants while owning his data.
According to the presentation published by TBD, the concept of web5 Jack Dorsey is based on three pillars:
- Decentralized Identifiers, DID - provide authentication and data routing;
- Verifiable Credentials, VC - special formats and data models for cryptographic representation and verification of assertions;
- decentralized web nodes (DWN) - store data and relay messages exchanged between applications and protocols.
Web3 Vs. Web5: The Core Differences
If to talk about web5 vs web3, the immediate vision of Web5 is similar to Web3, but each has its special qualities. Web3 application ideas take the form of smart contracts deployed on public blockchains such as Ethereum. Many call web3 a DApps. Its base code resides on a blockchain-based decentralized network.
From another point of view, web5 crypto includes DWAs that are not based on blockchain but can interact with DWNs. This creates a peer-to-peer relay network that exists alone of any general blockchain.
With web5, you have power over your data, which you may hold in DWN.
Web5 vs Web3: Jack Dorsey has repeatedly criticized the concept of Web3. In his opinion, if to compare web3 vs web5, it is focused on earnings and the financial component. Web3 uses blockchains everywhere with their own tokens. This leads to 3 problems:
- instead of developing technologies, most projects and users are trying to make money;
- focus on short-term profit leads to a large number of projects operating on the principle of financial pyramids;
- the influence of venture funds reduces the decentralization of projects. Most blockchain startups survive on investments from these funds, giving them a significant portion of their tokens. As a result, large investors have stakes in many projects and, accordingly, influence the entire Web3 system.
Therefore, there will be no tokens in Web5. But the project will partially involve the Jack Dorsey bitcoin web ionmcsweeney. How exactly Web5 will use it, the developers have not yet specified.
Jack Dorsey Web5 is an open-source decentralized platform. It will provide users with their own storage of personal data, access to which will be only for themselves. And the services that people use will only be able to read this data with the user's permission.