Jack Dorsey on Web3: A Bitcoin Maximalist's Vision for a Decentralized Future

Jack Dorsey: The Bitcoin Evangelist and Web3 Skeptic

Jack Dorsey, the co-founder of Twitter and founder of Block (formerly Square), is one of the most influential and vocal figures at the intersection of technology and decentralization. However, his perspective is unique and often contrarian. Unlike many Silicon Valley VCs and founders who embrace the broad ecosystem of "Web3"-including Ethereum, NFTs, and DeFi-Dorsey is a staunch Bitcoin maximalist. He believes that Bitcoin is the only true candidate for the internet's native currency and that the current iteration of "Web3" is a dangerous, venture-capitalist-controlled distraction.

His vision is not for a lack of interest in decentralization; on the contrary, he is arguably one of its most passionate advocates. His focus, however, is laser-sharp. He sees Bitcoin as a protocol for decentralizing money and "Web5," a project from his TBD division at Block, as the protocol for decentralizing data and identity.

"Web3" vs. "Web5": A Battle of Philosophies

In December 2021, Dorsey famously tweeted, "You don’t own 'web3.' The VCs and their LPs do. It will never escape their incentives. It’s ultimately a centralized entity with a different label." This tweet ignited a firestorm of debate. Dorsey's core argument is that the Web3 ecosystem, largely built on Ethereum and fueled by VC funding rounds for new tokens, is simply recreating the power structures of Web2. In his view, venture capital firms invest in these projects, receive large token allocations, and then use their influence and marketing power to pump their investments, ultimately leaving retail users holding the bag.

His proposed alternative is "Web5: The Decentralized Web Platform." Announced in June 2022 by Block's TBD division, Web5 is an ambitious project that aims to give individuals true ownership over their data and identity. It is built on top of Bitcoin, using it as its foundational trust layer, but it does not have a new token.

The core components of Web5 are:

Decentralized Identifiers (DIDs): Self-owned digital identities that are not reliant on any corporation or third party.
Decentralized Web Nodes (DWNs): Personal datastores that hold an individual's public and encrypted data. Users can control which apps and services have access to their data.
Bitcoin as the Trust Anchor: The Bitcoin blockchain is used to anchor the DIDs, providing a secure and decentralized public key infrastructure without creating a new token or consensus system.

The goal of Web5 is to solve the identity problem that Dorsey believes Web3 has failed to address. In his eyes, Web3 applications still rely on users connecting with wallets that are largely disconnected from their real-world identity, and the data is still stored on centralized servers or complex, inefficient systems like IPFS.

Bitcoin: The Only True Decentralized Money

Dorsey's maximalism is rooted in his belief in Bitcoin's "immaculate conception." He argues that because Bitcoin was created by a pseudonymous founder (Satoshi Nakamoto) who has since disappeared, and because it had no pre-mine or venture capital funding, it is the only truly decentralized digital asset. All other tokens, he contends, were created by known founders and funded by VCs, giving them a centralized point of control and failure.

His company, Block, has fully embraced this vision:

Balance Sheet: Block was one of the first publicly traded companies to add Bitcoin to its corporate treasury.
Cash App: Allows millions of users to easily buy, sell, and hold Bitcoin.
Hardware Wallet: Block is developing a new, user-friendly hardware wallet to make self-custody of Bitcoin more accessible.
Bitcoin Mining: The company has announced initiatives to build a more open and decentralized Bitcoin mining system.

Bluesky and Decentralized Social Media

Beyond finance, Dorsey's passion for decentralization extends to social media. During his time as CEO of Twitter, he funded and spun out Bluesky, an independent project tasked with creating a decentralized social media protocol.

The protocol, called the AT Protocol, aims to create a world where users are not locked into a single platform. In this vision, you could move your identity, your followers, and your content from one social media app to another, just as you can move your emails from Gmail to Outlook. This concept of "account portability" is a direct challenge to the walled-garden model of today's social media giants, including the one he helped create.

While Bluesky is a separate entity from Block and is not directly tied to Bitcoin, it shares the same philosophical underpinning: to return control and ownership to the individual.

Conclusion: A Principled, if Controversial, Vision

Jack Dorsey's stance on Web3 is both principled and polarizing. His critiques of the VC-dominated Web3 ecosystem resonate with many who are disillusioned with the space's speculative excesses and centralization theater. His focus on Bitcoin as a singular, provably decentralized protocol provides a clear, if narrow, vision for the future of money.

At the same time, his dismissal of the entire ecosystem building on Ethereum and other smart contract platforms strikes many as overly simplistic. The innovations in DeFi, NFTs, and DAOs, while imperfect, represent some of the most vibrant and creative areas of Web3.

Ultimately, Dorsey is not against a decentralized web; he is a purist fighting for a specific version of it. He believes the "how" matters just as much as the "what," and for him, the only correct "how" is through open, decentralized protocols like Bitcoin, not through VC-backed token projects with centralized leadership. His work on Bitcoin at Block and his support for Bluesky represent a determined effort to build the infrastructure for what he sees as a more authentic and empowering digital future.

Frequently Asked Questions (FAQ)

Q1: Why does Jack Dorsey dislike Ethereum?

Dorsey has criticized Ethereum for what he perceives as its centralization. He points to the fact that it was created by known founders, had a pre-mine (tokens created and distributed before the public launch), and has a foundation that exerts significant influence over its development. He sees it as a "single point of failure" and therefore not a suitable foundation for a truly decentralized internet.

Q2: What is the relationship between Jack Dorsey and Elon Musk?

Dorsey and Musk share a mutual respect and a common interest in promoting free speech and open protocols. Dorsey was a vocal supporter of Musk's acquisition of Twitter (now X), believing that taking the company private was the best way to move it towards a more open and protocol-based system. Both are also prominent supporters of Bitcoin.

Q3: Is "Web5" a real project?

Yes, Web5 is a real, open-source project being developed by TBD, a subsidiary of Dorsey's company, Block. It is not a product itself, but rather a set of standards and protocols that developers can use to build decentralized applications. Its goal is to provide decentralized identity and data storage solutions built on top of the Bitcoin blockchain.

Q4: Does Web5 have a token to invest in?

No. A core principle of Web5 is that it is built on Bitcoin and does not introduce a new token. This is a deliberate choice by Dorsey to avoid the VC-driven tokenomics that he criticizes in the "Web3" space.

Q5: What is Bluesky and how is it related to Twitter (X)?

Bluesky is an independent company and a project that was initially incubated within Twitter when Dorsey was CEO. Its goal is to create a decentralized social networking protocol (the AT Protocol). It is not owned by X (formerly Twitter). The idea is to create a future where multiple social media applications, including a potential future version of X, could be built on top of this shared, open protocol, allowing for user choice and account portability.

The Web3 Opportunity

The Web3 sector is experiencing explosive growth, with demand far outpacing supply for qualified talent. Unlike traditional tech, Web3 offers unique advantages: higher compensation, equity opportunities, fully remote roles, and the chance to work on transformative technology.

Market Context

The Web3 job market has fundamentally different dynamics than Web2:

Compensation: Web3 roles typically pay 20-40% higher than equivalent Web2 positions, with significant bonus and equity components.

Remote-First Culture: Most Web3 organizations operate fully or primarily remote, offering flexibility that's rare in traditional tech.

Growth Trajectory: Career progression happens faster in Web3 due to rapid company scaling and talent shortage.

Equity Upside: Token and equity packages are standard, offering significant wealth-building potential.

Step-by-Step Transition Strategy

Step 1: Build Web3 Knowledge Foundation

Spend 4-8 weeks learning blockchain fundamentals. Understand:

How blockchain technology works
Different blockchain architectures
Smart contracts and their use cases
DeFi, NFTs, and DAOs
Current Web3 ecosystem and key players

Step 2: Learn Relevant Skills

Depending on your target role:

Engineers: Solidity, JavaScript/TypeScript, Web3 libraries (ethers.js, web3.js)
Product Managers: Token economics, protocol governance, user growth in Web3
Business Development: Market analysis, partnership strategy, regulatory landscape
Community/Operations: Community building, Discord management, governance

Step 3: Build Your Portfolio

Create tangible proof of your Web3 expertise:

Complete open-source contributions to Web3 projects
Build a small DApp or smart contract
Write about Web3 topics on Medium or Twitter
Contribute to DAOs or community projects
Participate in hackathons

Step 4: Network in Web3

The Web3 community is incredibly accessible:

Join Discord communities of projects you're interested in
Attend Web3 conferences (Consensus, Devcon, ETHDenver)
Engage on Twitter/X with Web3 builders and thought leaders
Participate in governance forums
Join local Web3 meetups

Step 5: Apply Strategically

Target roles that leverage your existing expertise plus new Web3 knowledge:

If you're a backend engineer, look for blockchain infrastructure roles
If you're a PM, look for protocol product roles
If you're in sales/business, look for Web3 business development

Real-World Success Stories

Developer to Smart Contract Engineer

Alex, a 5-year backend engineer at a FAANG company, spent 3 months learning Solidity while maintaining his day job. He contributed to an open-source protocol, caught the attention of a major DeFi project, and transitioned with a 50% salary increase and significant equity.

Product Manager in Web3

Jessica, a PM from traditional finance, leveraged her domain expertise in DeFi. Her understanding of financial products combined with Web3 technology made her incredibly valuable. She found a role at a leading DeFi protocol within 4 weeks.

Career Changer Success

Marcus left his corporate job to focus on Web3 for 6 months. Through consistent learning, networking, and portfolio building, he landed a role leading Developer Relations at a major blockchain platform, with compensation far exceeding his previous role.

Web3-Specific Challenges

Volatility Risk: The sector's volatility can impact job stability. Diversify and build emergency funds.

Regulatory Uncertainty: Regulations are still evolving. Choose projects with strong legal teams.

Due Diligence: Not all projects are legitimate. Research thoroughly before joining.

Learning Curve: The learning curve is steep, but the community is incredibly supportive.

FAQ

Q: Do I need to be a blockchain expert to work in Web3? A: No. Companies need diverse skills-marketing, design, operations, business development. Your existing expertise is valuable; you just need to learn the Web3 context.

Q: How much can I earn in Web3? A: Significantly more than Web2 equivalents. Base salaries are higher, plus signing bonuses, equity, and token packages. Realistic expectation: 30-60% increase from Web2 roles.

Q: Is it risky to transition to Web3? A: Like any emerging industry, there's risk. Mitigate by joining established, well-funded projects with strong teams and track records. Avoid speculation; focus on building.

Q: How long does the transition take? A: 2-6 months depending on your background and effort level. Engineers and product managers transition faster due to transferable skills.

Q: What if the crypto market crashes? A: The fundamental technology and use cases remain valid. Bear markets often create better opportunities-teams can focus on building rather than hype-driven growth.

Key Takeaways

Web3 offers significant compensation, growth, and impact opportunities
Transition takes 2-6 months with dedicated effort
Your existing skills are valuable; focus on learning Web3 context
Networking and portfolio building matter more than certifications
Join established projects to mitigate risk
The community is incredibly supportive and accessible