Web3 Rest in Peace! No, we didn’t say that. Its former Twitter head and current Square CEO Jack Dorsey proclaimed while unveiling Web5, touting it to be the next generation of the decentralized internet.
Square’s new Bitcoin business TBD which focuses on making DeFi accessible has first tweeted the new project calling it “an extra decentralized web platform”.
In the slide presentation, the firm wrote that the current web model holds users’ data and identity captive which is why they created Decentralized Identifiers [DIDs] and Web Nodes [DWN] that brings data ownership and identity control back to individuals or organizations.
The combined force of DIDs and DWN is set to produce a web of secure messaging, data sharing, and credential exchange that it claims would replace Web3’s one-off protocols such as encrypted messaging, photo sharing, etc.
Jack Dorsey’s abhorrence towards Web3 is well known and has raised questions on multiple occasions about the supposed decentralized nature of the space.
As reported by TronWeekly, Dorsey especially expressed displeasure over leading Web3-friendly large-scale investors such as Andreessen Horowitz [a16z] for looking to monopolize the platform.
He is not alone. Lauren Capelin who works as the lead investor at one of Australia’s biggest startup accelerators has also raised concerns over traditional venture capital funding for some Web3 startups, warning it might, in reality, hinder rather than help firms build the next-generation tech.
Web3’s Funding Style Has Received A Lot Of Flaks
As a matter of fact, several Web3 startups often receive funds through less traditional methods, like DAOs.
DAOs secure funds by selling tokens to a community of people, who hold individual voting rights over the direction and purpose of the organization.
Often DAOs require members to prove their worth in terms of skills or services they can bring to the table. Many of these DAOs then vote on those proposals or projects that are fund-worthy.
But, Capelin has her skepticism with regards to Web3 projects which she felt would suffer as opposed to benefitting.
“I think the dangerous thing is venture capital funding these communities. But there’s definitely space for large-scale investors in capitalizing the core infrastructure of this space [through] more traditional sources of funding,” She added.