What is Web5, and Why Does It Matter for the Future of the Internet?

The Current State of The Web

The internet is one of the most powerful inventions of human history. It has transformed the way we communicate, learn, work, and create. You may have heard of Web2, the current version of the web that we use every day. Think of platforms like Facebook and X, where you can share and consume information. Most times, if the service these platforms provide is free, you are not a customer; you're the product. As a Web2 user, you have little to no control over how your data is distributed. Your data can be sold to the highest bidder or hijacked by someone with malicious intent.

Also, data across different Web2 platforms is not synchronized. Users have to perform the monotonous task of filling out forms repeatedly across different applications. As users, we are long overdue for an evolution of the web where we get to choose where our data is stored and how it is shared. This is where Web5 comes in!

What is Web5?

Web5 uses decentralized technology so that you, the user, can control your own identity across the web without relying on big corporations to store your data. But what does Web5 actually mean for regular people like you and me? How does it work, and what can we do with it?

Imagine you have a digital passport stored on your phone or computer. This contains all your personal information—your name, birthday, nationality, photo, etc. You can use this digital passport to prove your identity while boarding a plane, checking into a hotel, or renting a car.

This digital passport is different from a traditional passport in a few key ways:

• First, you control the data in your digital passport. You decide who can access it and for how long, and you can update or revoke access anytime.

• Second, it's more secure and private because the data isn't stored in one central database that could get hacked. It's encrypted and stored locally, where only you can access it.

• And third, it's way more convenient than carrying around a physical passport! You can use your digital passport on your phone or device to access services with one tap—no filling out forms over and over.

Like the scenario above, Web5 allows you to create a digital identity that you can use across different platforms. With Web5, you can use your digital identity to sign in to any website or app that supports it without creating an account or giving away your personal information. You can even use your digital identity to verify your skills, credentials, and achievements without uploading any documents or certificates. With Web5, the possibilities are endless.

Understanding the Building Blocks of Web5

Web5 aims to put users back in control of their online data and identity. To achieve this goal, it relies on three key components working together: decentralized identifiers (DIDs), verifiable credentials (VCs), and decentralized web nodes (DWNs). Let's break these down in simple terms:

1. Decentralized Identifiers (DIDs)

   DIDs act like unique digital usernames that let you prove who you are online without needing a central authority like Facebook or Google to vouch for you. DIDs are anchored securely using blockchain technology, so only you control your identity.

   For example, say you want to use a new social media app that respects user privacy. You could sign in with your DID instead of typical login credentials. This allows you to access the app's services without handing over personal data or creating yet another account. Learn more about creating DIDs here.

2. Verifiable Credentials (VCs)

   VCs enable you to store identity documents and other personal data securely in one place. You decide exactly what information gets shared and with whom.

   Imagine applying for a loan on a platform leveraging Web5. Rather than upload documents to prove income, credit history, etc., you could share specific verifiable credentials that you control. These function like digital passports, proving particular claims about you without overexposing sensitive information. To learn more about creating VCs, visit web5/Credentials to get started.

3. Decentralized Web Nodes (DWNs)

   DWNs give you a way to access Web5 apps while retaining control over your data and identity. You can think of them like a personal web server you fully own.

   For example, imagine you’re a writer who wants to directly publish content for readers without intermediary platforms taking a cut. You could set up a DWN on your device(s), get a DID, and then create articles as verifiable credentials that only you can modify. Interested readers can discover your articles via the identifiers and pay you directly; there are no middlemen involved. Learn more about manipulating data in DWNs by visiting the TBD documentation on DWNs.

The beauty of Web5 is that the learning scope is not at all steep. You can easily upgrade your current web application to Web5. You can also build your Web5 application with Next.JS, Vue.JS, and other Javascript frameworks.

You might be wondering: What are the possible applications of Web5 in the future? How can Web5 benefit different sectors and domains that rely on the web? Let’s explore that in the next section.

The Future Applications of Web5

Because Web5 prioritizes the needs of users over those of big corporations, its adoption will be driven by users' optimism and their desire for an internet that prioritizes their interests. Here are 10 possible ways Web5 can be applied in the future:

1. Elections

   

   Imagine participating in a major election where votes are cast and tallied on a Web5 platform. Voters first register using DIDs stored in digital wallets along with biometric data like fingerprints. This verifies their identity while protecting privacy. On election day, votes are encrypted and then recorded on a tamper-proof blockchain ledger. Voters can easily confirm that their choices were captured correctly. The decentralized and cryptographic nature of Web5 would secure the voting system like never before and significantly reduce fraud.

2. Travel and hospitality

   

   For frequent business travelers, juggling hotel, flight, and transportation bookings across multiple platforms often proves frustrating. With Web5, users can access a simplified system where their DID allows unified access to decentralized versions of Airbnb, Uber, and more. Users can sync relevant credentials once and then enjoy seamless coordination between services. No more separate accounts and passwords or repeatedly entering credit card details. Using this implementation, traveling will be stress-free as the universal digital ID verifies permissions and manages reservations via blockchain. Company expense reporting will also improve because they have all trip transactions visible on a transparent ledger.

3. Education

   

   Web5 platforms can come in handy for international students who want to apply to an overseas university. Currently, transcripts and records pass through slow evaluation and verification processes. With Web5, academic credentials become instantly shareable worldwide via VCs signed by your university’s DID keys. Prospective schools can quickly validate grades, degrees conferred, and other pertinent details without centralized intermediaries. Students can freely transmit certified educational background information wherever needed; no third-party authentication is required.

4. Health

   

   A Web 5 model is advantageous for sensitive medical scenarios. Patients can use DIDs to anonymously consult online specialists regarding stigmatized conditions like STDs or mental health issues without revealing their identities. Practitioners can access verifiable credentials to analyze a patient’s history, but actual patient names remain hidden, promoting unbiased care. Web5’s security features prevent centralized health platforms from exploiting patient data while still allowing personalized diagnosis and treatment.

5. Finance

   

   Imagine sending money overseas to friends and family. Today’s dominant payment platforms, like PayPal, charge high currency conversion and transfer fees while gathering substantial personal information. Web5 minimizes these pain points through decentralized finance (DeFi) apps leveraging blockchain technology. Users connect directly via DIDs to send funds, bypassing expensive intermediary banks. Tiny transaction fees replace hefty wire transfer charges. Personal details also remain private across parties utilizing zero-knowledge cryptography.

6. Freelancing and Job Agencies

   

   Web5 addresses reliability issues with existing freelance job boards, where identity fraud remains problematic. Under a decentralized model, employers and contractors alike register and verify credentials on blockchain-based platforms through DIDs and VCs. This establishes reputable identities in the freelance ecosystem, building trust on both sides. Job seekers can rate employers based on their experiences without fear of removal or censorship.

7. Virtual assistants and AI

   

   Imagine you have an AI assistant built on Web5 technology that helps you grow your brand across LinkedIn, Facebook, and Instagram without compromising data. First, you sync accounts via your DID. The assistant then accesses your activity history to offer tailored suggestions—who to follow, what discussions to join, and when to post content. It schedules updates, monitors engagement, and measures growth. You retain ownership over all data and authorize what’s shared publicly. No ads or recommendations based on your profiles, just an aide helping you achieve social media goals aligned with your ambitions.

8. Music

   

   Picture this; You, as a music lover, have a means of discovering and supporting artists directly through Web5 apps. As a fan, your DID lets you securely aggregate playlists, likes, subscriptions, and history across Spotify, YouTube, and Apple Music. The system recommends channels and songs it knows you’ll love. You can read reviews, tip creators, buy limited merch, and attend virtual concerts. Artists have tools to manage rights, upload tracks, and get transparent royalties—no labels taking unfair cuts. Everyone owns their data, and promotion happens peer-to-peer without algorithms deciding who goes viral.

9. Gaming

   

   For gamers tired of separate profiles on each platform, Web5 promises unified identities that travel with you. Link your credentials from Steam, Epic, Xbox Live, etc., then access environments where those achievements and friends carry over. Cloud sync means you can resume games from any device and rating systems have anti-abuse measures built in. You also get to own and sell virtual assets peer-to-peer and toggle privacy controls to mask data as desired.

10. E-commerce

    

    Online shoppers can relate to juggling multiple retail accounts. With Web5, you control shopping via decentralized identifiers. Link order histories, payment methods, and shipping addresses. Product reviews and past purchases inform AI-guided recommendations across any store; no ads are tracking you. For sellers, you can verify buyers’ credentials to reduce fraud. Also, reviews will reflect genuine experiences without censorship. This essentially allows users to drive e-commerce, rather than algorithms pushing impulse buys.

These are some of the possible applications of Web5 in the future, but they are not the only ones. Web5 can enable new and improved use cases for any sector or domain that relies on the web. Web5 can create new and unexpected use cases that we have not yet imagined.

Conclusion

Web5 is shifting data ownership towards users. It creates an open yet private web where DIDs and VCs ensure authenticity and openness, and DWNs ensure data privacy. I am excited to witness the future of the web, especially with the emergence of Web5. I believe the Web5 evolution is not just a glimpse into the future; it's an invitation to shape it.

Reading resources

Web 5 is still in development, but some experts have shared their insights and opinions on what it is and why it will be better than Web 3.

Here are some reading resources on Web 5 that you can check out:

1. What is Web5?: This article explains the concept, components, and benefits of Web5.

2. Web5: A Fresh Blueprint for App Development: This article discusses how Web 5 enables a web that eliminates the traditional barriers of centralized data control and how it opens up exciting possibilities for innovation.

3. Web 5.0: What It Is & Why It Will Be Better Than Web 3.0: This article explains the features, roadmap, and benefits of Web5 and how it differs from Web 3.0 in terms of decentralization, identity, and data sovereignty.

4. What Is Web5? Everything You Need To Know: It discusses the problems with Web3 and how Web5 promises to solve them.

5. What Is Jack Dorsey’s Web5 and How Will It Work?: It explains how Web5 will use decentralized identifiers, verifiable credentials, decentralized web nodes, and decentralized web applications to achieve this goal.

6. Web5 Explained: What It Is and How It Is Different From Web3: It outlines the main features, advantages, and challenges of Web5 and how it differs from Web3 in terms of data storage, identity management, and user experience.