BD-RE and CD-RW difference?

[Ryo Destined]

My friend and I had a conversation about what causes the Blu-ray format to have a higher capacity than the other formats. We knew the laser was the main reason, but that didn't explain why you would need a blank blu-ray format disc instead of a standard blank CD to achieve the greater capacity. I've done a lot of research and now understand how rewritable CD's work so I have only speculated one possible reason and I'm looking for confirmation or correction.

My theory is that the dye used in a CDRW or DVDRW or HDDVDRW won't react to the blue laser used for Blu-ray, but BDRE discs have a material that will react to the blue laser.

Please confirm or correct me as to why blu-ray lasers don't provide higher capacity for other blank re/writable disc formats.