Source : coingape.com
Jack Dorsey, the CEO of Twitter and founder of Square is a well-known Bitcoin proponent, and his decentralized Bitcoin exchange project called TBD has started to materialize. Dorsey announced his Bitcoin-based Defi plans a couple of months ago, and earlier today the official account of TBD shared a white paper marketing the beginning of the project.
We made a white paper. https://t.co/ffvYGjQQ7T
— TBD (@TBD54566975) November 19, 2021
The white paper highlights how the upcoming tbDEX would merge the existing gap between Fiat and bitcoin. tbDEX aims to offer a direct way for people to convert their fiat into Bitcoin without having to go through multiple platforms. While there are several platforms that claim to offer a direct fiat-Bitcoin bridge, however, there are multiple complexities involved that could deter the new entrants. Square’s tbDEX aims to build the first trustless platform.
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,” per the statement. “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 transition fee on the platform would be determined by the free market and users have the option be either remain anonymous or reveal a certain aspect. The anonymous transaction fee could be higher compared to the ones that disclose personal information.
Would Square’s Bitcoin Defi Exchange Succced?
When Dorsey first revealed his plans of building a DEX platform based on Bitcoin, many Ethereum proponents claimed it would not succeed given Ethereum based Defi is already humongous and in order for the Bitcoin network to support Defi, it must integrate smart contract functionality first. However, Dorsey believes the open and decentralized architecture of Bitcoin makes it perfect for DEX’s as well.
Defi has become one of the biggest breakout use cases from the crypto ecosystem and has already built a multi-billion dollar industry around it. The interest of Square to enter the Defi world using Bitcoin could prove to be another breakthrough use case to come out of the crypto world.