Welcome to the exciting world of Web5, where cutting-edge technology meets endless possibilities. Dive into the realm of Web5 to discover its countless benefits and what sets it apart from its predecessors. Prepare to be wowed by its potential to revolutionize the way we engage with the internet. From its impressive features to enhanced security and performance, Web5 is truly a game-changer in the realm of web development. Stay ahead of the curve and join us in embracing the future of the web with Web5.
Why should we embrace Web5 ?
Nowadays, our personal data is widely spread out among different digital spaces without us knowing about it and, in most cases, without our permission. The fragmented data space also brings concerns about our privacy, security, and control over ourselves when it comes to digital personalities or identities. Self-Sovereign Identity (SSI) is an emerging response to these problems in the form of Web5, which is the next generation of the Internet.
TBD (a new business unit at Block's formed in 2021) launched Web5 with the aim to offer a group of community-oriented and open-source web standards-based software suites that promote SSI. Through SSI, individuals take back the power of their identity so that they can confidentially authorize information sharing with other trusted parties.
Web 5 enables its user community to act as agents of the economy by providing them with tools enabling them to decide what information should be shared and who should compensate them for this data. The change to user-centeredness is a radical shift and reflects how we currently use the internet, wherein big providers collect and profit from our data, often not with our expressed consent.
We can move away from the current era and enter a new age if we embrace Web5. Web5 builds on SSI and contributes to creating a decentralized future that returns ownership and control over your finances, data, and identity.
Core pillars of Web5
Web 5 is a decentralized platform that provides a new identity layer for the web to enable decentralized apps and protocols. Three essential components or pillars form the foundation of the decentralized web platform, all of which are guided by open standards : decentralized identifiers, verifiable credentials, and decentralized web nodes.
DID (Decentralized Identifiers)
Our most valuable asset, our personal data, should be under our control, yet the identifiers we employ are managed by external entities, such as governments, businesses, and organizations. We link most of our online identities, such as emails and usernames, which can be switched off or deleted by the service providers. However, this shows that there is no control over one’s digital identity, bringing up issues of privacy and autonomy.
So to overcome this problem, it is necessary to use Decentralized Identifiers (DID) that are simply W3C Standards. A DID is an address representing who you are and allows others to find you on the decentralized web. It can designate a diverse set of entities, such as individuals, institutions, tangible items, data representations, and intangible concepts. Your DID act as your online passport, enabling controlled access to your digital identity and the information you authorize others to view.
Everyone should have a DID so as not to depend on any centralized authority. This type of identifier can be carried everywhere with you and can be used to identify you on any platform. DID have a standardized format that uniquely identifies you and your information. They are long strings of text composed of three parts :
the URI scheme identifier which : did
the identifier of the DID method
the DID method - specific identifier
A simple example of a decentralized identifier (DID)
The diversity of DID solutions catering to specific applications is vast and continuously evolving, while Web5 currently supports a limited range of DID implementations, such as did:key and did:ion. To preserve your DID, you must have a DID Document, which is a JSON file stored in decentralized storage systems. A DID Document contains your DID public keys, authentication and verification methods, and service endpoints that reference the locations of your data.
Verifiable Credentials (VC)
Verifiable Credentials are revolutionizing secure online communications, making them more reliable. Pretend you need to demonstrate to your landlord that you earn consistently. Through Verifiable Credentials, it is possible to divulge your verified employment credentials to them while protecting irrelevant individual details.
DID, therefore, play a great role, and they work hand in hand with Verifiable Credentials. In case you share your VC, you show some proof that is connected to who you are as a person. This VC is cryptographically signed by its issuer, for example, your university or employer, securing its genuineness.
Similar to your landlord, the verifier can look at the VC’s signatures to verify their correctness. Hence, they know the issuer enough to trust them and therefore do not need to check this information with the issuer as being true. Such a trustless approach makes everything much easier, and it also increases the level of confidentiality.
Decentralized Web Nodes (DWN)
With Decentralized Web Nodes as personal data stores, we can host our own data, instead of depending on central platforms. This makes us be free to determine where our data should be made available, shared, or even monitored for profits. DWNs are able to store both types of raw information, i.e., open source and security cleared.
If you were to imagine that all your tweets and connections did not belong to Twitter, but to you. After this, you will be able to place your content on any modern and appropriate decentralized social media application. Your public tweets are available for all to see and read, while you retain exclusive access to your privately hidden direct messages. DWNs can also be hosted at any place on your device or via cloud replications.
However, certain users will not want to decentralize their data themselves and will opt to be hosted by other people. The intermediaries are only able to host the encrypted private data, regardless, they cannot see it.
DWN associated with your DID Document can easily be retrieved using your decentralized identifiers (DID). DWNs work with an authorization system that gives others access to read, write, or delete data on your node. This may involve permission or installation of a protocol.
The use of DWN helps us to take back power in a way that is fair and more personalized for the users.
Potential uses of Web5 ?
"Web5" is a newer term, and we are just beginning to unlock its full potential. We look at decentralization, the power is in the hands of the users, and data belongs to individuals as anticipated key features. Let's explore some ways Web5 could be used.
Decentralized Finance (DeFi)
Web5's decentralized infrastructure has the potential to transform the financial landscape, ushering in a new era of openness, transparency, and accessibility. Through DeFi applications, individuals can gain the ability to borrow, lend, trade, and oversee their assets without the need for conventional intermediaries such as banks or brokerages. This groundbreaking model democratizes financial services, providing greater control and autonomy to the users.
E-commerce and Supply Chain Management
The advent of Web5 has the potential to revolutionize e-commerce by promoting greater transparency and security in the supply chain. By utilizing decentralized marketplaces, customers can directly access producers and bypass intermediaries, effectively mitigating the risk of fraud.
Governance and Decision-Making
Web5 has the potential to promote a more inclusive and interactive form of governance through its ability to establish decentralized voting systems and decision-making procedures. By utilizing decentralized autonomous organizations (DAOs), communities can collectively and openly make decisions that benefit the greater good.
Arts and Entertainment
Web5 allows artists and creators to have the chance to profit from their craft and directly engage with their audience. With decentralized platforms for music, art, and other forms of creativity, creators are empowered with more ownership of their work, while fans have fresh avenues to show their support for their beloved artists.
Other possible applications include the following: Internet of Things (IoT), Environmental Monitoring and Sustainability, Healthcare and Medical Data Management
Challenges and considerations of Web5 ?
The implementation of Web5 brings with it a myriad of obstacles and factors to consider, marking a significant leap forward in web technology. A seamless transition requires overcoming compatibility hurdles with current platforms, as well as integrating new technologies like the semantic web and decentralized protocols effortlessly. The utmost importance must also be placed on heightened security measures, data privacy, and empowering users to have control over their personal information.
Furthermore, embracing Web5 requires a strong and reliable infrastructure to support advanced features such as immersive experiences, artificial intelligence, and interconnected devices. Striking a balance between progress and maintaining compatibility, fostering collaboration among all involved parties, and addressing ethical concerns are crucial elements in successfully navigating the complexities of this progressive shift.
Fortunately, initiatives such as DevCareer's Web5 Hackathon powered by TBD are being launched to popularize Web5 technology. Lasting 4 full weeks, from November 20 to December 15, 2023, the hackathon takes place online, with participants from all over the world...