Square released a white paper on a Bitcoin decentralized exchange and users are now able to swap it via this new platform so let’s read more in our latest Bitcoin news today.
Square is a financial payments company led by Jack Dorsey who has been working on a decentralized asset platform since a year ago. Now, Square released a white paper on a Bitcoin decentralized exchange as Dorsey wanted to make more for bitcoin than just allow people to buy it on the Cash App. The CEO of Twitter wanted to create a new way for people to trade BTC and other currencies on a DEX which is common to Ethereum. Square’s TBD division announced back in July that it is working on a decentralized exchange but today it released a white paper finally.
We made a white paper. https://t.co/ffvYGjQQ7T
— TBD (@TBD54566975) November 19, 2021
The white paper claims that the decentralized exchange is a protocol for discovering liquidity and exchanging assets like bitcoin or fiat money safely, without knowing the identity of other parties. It also says that the protocol goes around financial intermediaries or centralized exchanges for example that guard the borders between digital currency and fiat. While the tbDEX is built around Bitcoin, it is not necessarily built on top of the Bitcoin blockchain. It is just a series of on-and-off ramps to BTC and other crypto networks but where the protocols lives exactly is not cleared in the white paper.
It utilizes smart contracts to allow for transactions beyond currency because decentralized exchanges want to provide an identity solution as well. Bridges exist between Ethereum and the rest of the networks but id didn’t get mentions in the white paper at all. The most probable answer is that Dorsey is a huge fan of Bitcoin as the number cryptocurrency. He has shown almost no interest in Ethereum or any other currency:
“Whatever my companies can do to make it accessible to everyone is how I’m going to spend the rest of my life. If I were not at Square or Twitter, I would be working on Bitcoin. If it needed more help than Square or Twitter, I would leave them for Bitcoin.”
Square was a part of the peer-to-peer payment revolution and made it quite easy for everyone to send cash from a bank account or a vendor to take credit card payments. tbDEX will extend the mission into the crypto space and people will not be sending cash that is held in bank accounts but from the crypto wallets themselves. The new entrants to the crypto space will first have to dive into the digital world and that often starts with buying crypto via exchange or a bank card. The white paper noted:
“It is still prohibitively difficult for the average person, starting with traditional fiat-based payment instruments, to directly access on-ramps and off-ramps into and out of the decentralized financial system. We need a better bridge into this future. The tbDEX protocol is directed at this problem.”
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