The CEO of Twitter and founder of Square, Jack Dorsey, is a popular Bitcoin proponent. His decentralized Bitcoin exchange project is known as TBD and seems to have started to materialize. Dorsey made public his BTC-based DeFi plans several months ago, and on November 20, 2021, the official account of TBD shared a white paper that marketed the start of the project.
We made a white paper. https://t.co/ffvYGjQQ7T
— TBD (@TBD54566975) November 19, 2021
This white paper explains how the upcoming tbDEX would manage to merge the current gap between bitcoin and Fiat. The tbDEX platform strives to offer a direct means for people to change their fiat into Bitcoin without needing to go through many platforms.
While there are many platforms that allege to provide direct fiat-Bitcoin bridges, many complexities are involved which could discourage the new entrants. On its part, Square’s tbDEX aims to create the first trustless platform.
According to the statement:
“We propose a solution that does not rely on a federation to control permission or access to the network; nor does it dictate the level of trust required between counterparties. There is no governance token. Instead, the tbDEX protocol allows participants to negotiate trust directly with each other; — or mutually and voluntarily rely on trusted third-parties to vouch for the counterparty.”
The platform’s transition fee would be mostly determined by the free market and the users have the chance to either remain anonymous or go on to reveal a certain aspect. The anonymous transaction fee might be higher when compared to the ones that share some of their personal information.Buy Bitcoin Now
Would Square’s TBD Exchange Succeed?
When Jack Dorsey announced his plans to create a DEX platform that is based on Bitcoin; a lot of Ethereum proponents said that it would never succeed since Ethereum based decentralized finance sector is already massive. Also, for the BTC network to support decentralized finance, it has to integrate smart contract functionality. Nonetheless, Dorsey thinks that the open and decentralized infrastructure of Bitcoin makes it ideal for DEX’s too.
Decentralized finance has now become the largest breakout use case from the crypto sector and has so far created a multi-billion dollar sector around it. The interest that is coming from Square to join the DeFi space using Bitcoin may prove to be another major use case breakthrough that has ever come out of the cryptocurrency industry.