Jack Dorsey’s ‘TBD’ company pushes ahead with a new decentralized internet built on the Bitcoin blockchain.
Posted a thread on my twitter about this today here, but wanted to write it out in long form.
For those that missed it, Jack Dorsey and his ‘TBD’ bitcoin company released the beginnings of Web5 yesterday, a new take on creating an open-source, decentralized internet built atop the Bitcoin network.
Twitter user @namcios had a great breakdown below
On Twitter, the majority of discussion has been centered around “Web5 vs Web3”. This is no surprise, as the name ‘Web5’ acts as a troll and a marketing campaign, stirring up debate within the crypto community. However, as @mewn21 kindly pointed in response to my thread, many believe that mission + technology is no different from the existing ‘Web3’.
However, this does not detract from the announcement’s importance. Until now, the only mainstream use case for the bitcoin network has been currency. Web5 will build on this, enabling users to interact on an internet without losing ownership of either identity or data. While @mewn21’s response is correct in that other blockchains do offer these technologies, the power, size and decentralization of the bitcoin network makes this more important.
To learn more about the bitcoin network, read this below : https://www.agungmalang.com/2022/06/web5-vs-web3-bitcoins-expansion-beyond.html
One impact of this that many are overlooking are the crypto-native apps, services, and protocols that will be built from this innovation and the impact that will have on traditional financial institutions.
According to a report from Cornerstone Advisors, about 10 of credit unions are seeking to integrate crypto services into their offerings. At the start, this will be in the way of centralized, closed-off systems that only allow users to buy, sell, and hold bitcoin. However, with the introduction of Web5, these systems are already threatened because they will be passed by systems that take advantage of the network, not co-opt it to fit a marketing message.
In many ways, I believe that this moment will serve as a tipping point. For years, people have begun to accept the idea of bitcoin, the currency. However, by taking advantage of bitcoin, the network, web5 will be making the most of the most decentralized p2p network in the world. Social media, banks, and other projects will be built from this moment and it is extremely exciting to see.