Web5 Technical Breakdown

The Web5 architecture is a layered system designed to provide decentralized identity management while ensuring scalability, interoperability, and user privacy. This breakdown focuses on the system-level design and the technical methodologies that underpin Web5’s seamless operation.

System Overview

Web5 operates as a multi-layer architecture built on three main layers:

1. Identity Layer:

   • Built around DIDs, this layer serves as the foundation for user-controlled identity management. It ensures identity records are immutable, secure, and independent of any platform.

2. Credential Layer:

   • Manages Verifiable Credentials for secure and privacy-preserving proof of claims. VCs remain portable and interoperable across different ecosystems.

3. Application Layer:

   • Provides a framework for decentralized applications and DeFi protocols to integrate Web5-based identity systems into their workflows.

   • Uses smart contracts on Ethereum for programmability and advanced workflows.

Data Flow Architecture

The Web5 architecture handles identity-related data with an emphasis on efficiency and decentralization:

Identity Anchoring Workflow

1. DID Creation:

   • A user generates a DID and its associated cryptographic keys locally.

   • The DID Document is anchored to Bitcoin using the ION protocol, recording its hash immutably.

2. DID Resolution:

   • Applications resolve the DID by fetching its Document from the decentralized ION network. Public keys and service endpoints are retrieved for interaction.

Credential Workflow

1. Issuance:

   • An issuer creates a Verifiable Credential tied to the user’s DID, signing it cryptographically.

   • The credential metadata is stored off-chain using IPFS, Arweave, or Filecoin.

2. Verification:

   • A verifier queries the user’s DID and fetches the associated credential reference.

   • The reference is cryptographically validated against the DID’s public keys to ensure authenticity.

Data Synchronization

• Validators monitor and synchronize DID operations (creation, updates, revocations) between Bitcoin and Ethereum.

• References to off-chain data (e.g., credentials) are mapped to smart contracts on Ethereum, ensuring programmability and interoperability.

The Web5 architecture is designed to harmonize identity management across decentralized systems, bridging the gap between Bitcoin’s immutability and Ethereum’s programmability. By focusing on system-wide integration, scalability, and privacy, Web5 creates a robust, trustless identity layer that empowers both users and developers.