In 2023, over 5.4 billion people were using the Internet worldwide, with many relying on big platforms like Google to manage their online activities. These platforms control vast amounts of personal data, raising concerns about privacy and how our information is used.
Web5, a new idea introduced by Jack Dorsey’s Block, Inc., is here to change that. It focuses on giving people full control over their own data and digital identities, removing the need for big companies to act as middlemen.
This approach aims to solve growing data privacy and security issues, offering a safer and more user-friendly internet for everyone.
The Journey of Web Evolution
To understand Web5, we need to look at how the Internet has changed over time.
- Web1 was the internet’s first version from the early 1990s. It was simple and static—websites were like online posters or brochures. People could read information, but they couldn’t interact much or create content.
- Web2 came next. This is the internet most of us know today, with social media, blogs, and video platforms like YouTube. It made the internet interactive, letting users create and share content. However, it also led to data centralisation, with tech giants like Facebook and Google controlling vast amounts of user information.
- Web3 introduced blockchain technology to the internet. This version aims to decentralize the web, meaning no single company would control your data. Web3 also allows people to own digital assets like cryptocurrencies and non-fungible tokens (NFTs). However, Web3 can be hard to understand and use, which has made it difficult for many people to adopt.
Web5 is being developed to address the limitations of its predecessors. It combines Web3’s ideas of decentralization with a more straightforward, more user-friendly approach. Web5 focuses on giving people complete control over their data and making the internet more accessible.
What is Web5?
Web5 is a new idea for how the internet should work, focusing on giving people full control over their own data. It’s designed to make the web more personal, secure, and easy to use. The concept was popularised by Jack Dorsey’s TBD (a Block, Inc. subsidiary), representing a bold vision for a more user-centric web.
At its core, Web5 relies on three pillars:
Decentralized Identifiers (DIDs)
Traditional identifiers like email addresses are controlled by external entities, granting them the power to modify or revoke access. DIDs, however, are self-owned and managed by individuals, eliminating reliance on centralized authorities. This autonomy ensures that only the user can alter or deactivate their identifier, enhancing personal control over digital identities.
Verifiable Credentials (VCs)
VCs are like digital proofs of important information, such as qualifications or memberships. For instance, a university can issue a VC confirming a graduate's degree. These credentials are securely stored in a user’s digital wallet and can be shared when needed. Importantly, users can only share specific information, protecting their privacy while proving things about themselves.
Decentralized Web Nodes (DWNs)
DWNs act as personal storage spaces for data. Instead of storing information on centralized servers owned by companies, users keep it in their own DWN. Apps and services can access this data only with the user’s permission. For example, someone can store their playlists in a DWN and allow different music apps to use it without giving up data ownership.
Why Web5 Matters
One of Web5’s defining characteristics is its focus on data sovereignty. In today’s Web2 world, tech giants store and control most user data, often using it for targeted advertising or selling it to third parties. Web5 aims to change this dynamic by giving users complete control over their personal information.
For instance, imagine filling out your profile on a social media app. With Web5, your data is stored in your personal decentralized web node. Instead of keeping your information, the platform requests access when needed, and you can revoke that access at any time. This model reduces dependency on centralized servers and protects user privacy.
Web3 vs Web5: How Do They Compare?
The debate between Web3 and Web5 is inevitable as both aim to decentralize the Internet, albeit with different approaches. Here’s how they compare:
Web3 started the idea of decentralization by using blockchain technology to let people own digital items like cryptocurrencies and NFTs. However, Web3 can feel complicated for many users because it requires understanding technical tools like tokens and smart contracts.
Web5 takes the ideas from Web3, making them more practical for everyday life. Instead of focusing on digital assets, Web5 is about helping people take control of their personal data and online identities in a way that’s simple and easy to use. You don’t need to understand blockchain to benefit from Web5.
Web5 Applications Across Industries
Web5’s potential spans many industries, enabling more secure, private, and user-friendly interactions. Here’s how Web5 can impact various fields:
Finance
Web5 lets people manage their financial data securely. Instead of relying on banks or other central services, DIDs and VCs let you verify your identity and make transactions. This reduces the risk of fraud and keeps your financial information private.
Healthcare
Web5 can make health data more secure and easier to control. Your medical records are stored in your DWN, and you can decide who gets access to them. For example, you can share your health history with a doctor for a consultation and take back access once it’s no longer needed.
Education
Schools and universities can issue digital diplomas and certificates as Verifiable Credentials directly to your DWN. This means you own your academic records and can share them easily with employers or other schools when needed. It’s a faster and more secure way to prove your qualifications.
Travel
Web5 can make travel easier and more secure. You can store your passport details, visas, and travel rewards in your DWN. Airlines, hotels, or visa offices can request temporary access to this information when needed. This saves you from repeatedly uploading sensitive documents and ensures your data stays under your control.
Music
Web5 could change how people enjoy music. Your playlists and preferences can be stored in your DWN, so you can switch between music apps without starting from scratch. Artists can also share exclusive content directly with fans using Verifiable Credentials, cutting out middlemen and creating a closer connection.
Challenges of Web5
Web5 is a powerful idea, but it comes with challenges. Here are the main issues:
Adoption Challenges
Implementing decentralized systems like DWNs requires significant infrastructure development and user education. The technical intricacies may deter users and developers from fully embracing the technology.
Moreover, people are used to centralized platforms, which are easy to use and familiar. Switching to a new system requires effort, and not everyone will be eager to make that leap.
Risks of Data Ownership
With Web5, users are fully responsible for their data. If they lose access or their data is stolen, no company can help them recover it. This can feel overwhelming for many people.
Additionally, Web5 allows users to decide who can access their data, but this also means they have to be careful about how they share it. Learning to manage privacy effectively can be a challenge.
Legal and Regulatory Issues
Governments have strict rules about data privacy, and Web5’s system doesn’t easily fit into these laws. Companies building on Web5 will need to figure out how to stay compliant.
Decentralization is a new concept, and there aren’t always clear laws about how it should work. This can create uncertainty for both developers and users.
Conclusion
Web5 isn’t here to replace Web3—it’s the next step forward. Web3 laid the foundation for a distributed Internet, and Web5 builds on it to create an online experience that works for everyone. Together, they bring us closer to a future where users, not companies, are in charge of their data and identity.
As we stand on the brink of this new era, the question isn’t whether Web5 will change the internet but how quickly and profoundly it will transform our online lives. The journey toward a more decentralized, user-centric web has begun—and it’s one we should all watch closely.
