Jack Dorsey is working on a decentralized Bitcoin exchange called tbDEX. This exchange will offer people the ability to directly convert their fiat into BTC without having to use multiple platforms. Square, a US payments giant, recently released the whitepaper for a proposed decentralized BTC exchange called tbDEX, this project was first revealed by Dorsey, the Twitter and Square CEO in August 2021.
tbDEX aims to make Bitcoin the native currency for the internet. The company wrote that to achieve this goal, the nature of how financial institutions work needed to evolve. According to the blog post, the world could either embrace the change by investing in the future as a public good or by reworking business models and how value is created. The other alternative was to let the future happen to them.
Square explained that people receive wages and pay for goods and services in fiat. Additionally, they have to pay taxes in fiat. To release the potential of BTC and decentralized finance in a fiat-based world, there need to be bridges built between fiat and crypto.
tbDEx would merge the gap between fiat and Bitcoin. It proposes to offer people a direct means to convert their fiat into BTC without having to use multiple platforms. In the new DEX, there will be no federation that controls permission or access to the network.
Additionally, there is not going to be a governance token. Instead, the protocol will allow participants to negotiate trust with each other mutually and voluntarily while relying on trusted third parties to vouch for counterparties. The blog post added that the economy needs to be inclusive. There was a need to create on-ramps to the future where everyone can participate in the economy.
When it comes to transaction fees, tbDEX will use free market forces to determine the transaction fees. It will be based on the amount of information each person is willing to disclose. That means that complete anonymity would cost more while full disclosure would significantly cut costs. According to Square’s blog post “The tbDEX protocol also facilitates the secure exchange of the minimum necessary identity information acceptable to counterparties to satisfy requirements, be they legal, regulatory, or related to any other consideration of risk.”
The head of strategic development at Square, Mike Brock, had earlier tweeted that the project would make it easy to fund a non-custodial wallet anywhere in the world to build on-ramps and off-ramps into BTC. According to Brock, it was akin to a “decentralized exchange for fiat.”
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Such platforms prove that the crypto industry is fast evolving and growing. Solutions such as the one created by Square could help to merge the crypto and fiat world and eliminate barriers to participating in the economy. To keep up with the latest developments in the crypto space, it is important to visit platforms such as topiacoin.io. The platform has the goal of educating the masses on developments in this space.