Jack Dorsey-backed Bitcoin business, TBD, a subsidiary of Block Inc., is driving Web 5.0 development. TBD has provided documentation on this ostensibly innovative and progressive new contribution to the Internet. The documentation explains why the project name was chosen as Web 5.0: Web 5.0 is shown as a simple combination of Web 2.0 and 3.0.
The technology is described in Web 5.0 literature as “the decentralized web platform: A new generation of the Web that facilitates independent apps and interfaces.” The Bitcoin blockchain serves as the system’s foundation since that is what TBD concentrates on.
However, this is not about cryptocurrencies. Instead, according to the documentation, Decentralized Identifiers (DIDs), public keys, and endpoints are all assigned to ION: ION is a permissionless DID layer that works on top of the Bitcoin blockchain. Notably, Microsoft announced the adoption of ION in 2021 for its debut on the decentralized web.
TBD’s Web 5.0 consists of four main components:
1. Decentralized identities are based on developing identity standards from the Decentralized Identity Foundation (DIF). DIF has created a Distributed Identifier (DID). DIDs are often kept on a blockchain.
2. Decentralized web node – DIFs decentralized data storage standard implementation.
3. Self-sovereign identity service – a service that manages Verified Credentials during their entire existence.
4. Self-sovereign SDK – for creating SSI wallets for consumers and citizens.
Web 5 is a technological, not a set of standards, such as the critical relevance of UX/UI (user experience/user interface) for consumer adoption of online, identity-driven operations.
Giving the Web 5.0 paper its credit is, ultimately, accurate in several ways. One of the main concerns in the identity market is the mixing of consumer and citizen identities. Most use cases do not necessitate the usage of an identity. Then there is the question of scalability in a Bitcoin blockchain-based system: DIDs will be registered to a Bitcoin blockchain in Web 5.0, and even if a DID is modest, scalability and transaction costs may necessitate off-chain hosting. There is no simple solution to the problem of online identification. But perhaps we do not need an ‘identity’ at all; instead, we only need mechanisms for privately and securely sharing data even without desiring a lasting identity.
Written by: Aarav Gupta
Edited by Prakhar Tripathi