Decentralizing the Web: Introducing Web5

The concept of Web5, introduced by Jack Dorsey’s payments company Block (formerly Square), differs from Web3 in several ways. Firstly, while Web5 shares Web3’s foundation in decentralized protocols, it adds an additional layer of decentralization. This is achieved by combining Web3’s blockchain-based smart contracts with Web2’s centralized content platforms. Essentially, Web5 aims to provide an “extra decentralized web platform” that goes beyond Web3’s focus on financial layers. Secondly, Web5 seeks to address the issue of user data being held captive in app silos by promoting “a new class of decentralized apps and protocols that put individuals at the center.” To achieve this, Web5 employs three core concepts: self-owned decentralized identifiers, verifiable credentials, and decentralized web nodes for storing data and relaying messages. These principles differ from those of Web3, which often involve governance-token, DAO-controlled protocols. Thirdly, unlike Web3, which can be seen as a potentially disruptive force to traditional web services, Web5 aims to work alongside existing Web2 services. This approach allows Web5 to offer new features like Groove’s addition of a playlist to a Web5 user’s decentralized identifier, which can then be used by other music services like Tidal. However, some critics argue that Web5’s ideals may be impractical, likening Dorsey’s vision to that of a high school student advocating for communism without fully understanding its implementation. Ultimately, the success of Web5 remains to be seen, with only a few decentralized identity services and data storage systems gaining traction so far.