It’s surprising but perhaps reflective of his evolution within the cryptocurrency space is the fact that Twitter co-founder Jack Dorsey has stepped back on his ambitious ‘Web5’ project while at the same time increased investment in Bitcoin mining. This shows increased interest in the foundational technology behind Bitcoin and a changed direction for decentralized finance.
Dorsey’s pivot represents a U-turn for his company, Block, Inc., which initiated the Web5 project envisioning as its true next iteration of the internet and what, indeed, could be more decentralized. Praised as building “a bridge toward a user-owned internet,” Web5 vowed to do this by tapping into ideas from blockchain, decentralized identity, and data storage. The idea behind the project was to transcend the concept of Web3 by creating user sovereignty, a kind of ownership where people can decide and control the data outside the centralized platform. Still, even with an innovative concept, the project failed to create enough traction to sustain such grand and ambitious goals.
In the aftermath of this move, Dorsey is expected to deepen his holdings in Bitcoin mining. Offshoot Spiral is a subsidiary of Block that had been advocating for a decentralized network of Bitcoins and the latest development further reveals that Dorsey holds up Bitcoin mining as a trigger for even further decentralization in finance. This is a perspective shared by Dorsey for a long time, holding that Bitcoin is “native to the internet,” a perception he has defined as a manner of using force against the stranglehold enjoyed by financial intermediaries over monetary transactions.
The Web5 initiative closure may be something of a set back in case people had been eagerly waiting for the absolute decentralization of the internet. But, renewed interest by Jack Dorsey in Bitcoin mining may bring some encouraging results. Industry watchers believe investment into the infrastructure surrounding Bitcoin may accelerate efforts toward making decentralized mining accessible to users of all levels. Rather, what follows is a continued focus on Bitcoin, an established cryptocurrency, with a fully developed network, rather than further penetration into emerging, though sometimes untested, technological domains.
To that end, it is impossible to say at present what the broader implications of Dorsey’s decision will be within the crypto landscape, yet his renewed commitment to Bitcoin does strengthen the argument he sees in building its infrastructure and centralizing matters. Those following the Bitcoin market, closely will realize that investment by Dorsey may catch the positive momentum in the Bitcoin forecast for 2024 as experts consider there would be an upward surge with institutional interest coupled with the infrastructure going great in this technology.
