It’s no secret that Jack Dorsey, the CEO of Twitter and Square, has been a crypto enthusiast for quite some time. The people who follow him on Twitter are no strangers to this, so it’s really no surprise to hear another Dorsey-Bitcoin news.
In July, Jack Dorsey announced the emergence of a bitcoin-focused business division at Square (TBD) with the sole goal of creating “an open developer platform with the sole goal of making it easier to create non-custodial, permissionless and decentralized financial services.” was focused.”
Developing an open-platform bitcoin-focused DEX
Now Jack Dorsey and Square have taken it a step further. Square’s new TBD division is developing a bitcoin-focused decentralized exchange (DEX). The platform will be accessible and open-source, yet users will be able to fund their wallets with fiat currency.
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“We set the direction for @TDB54566975: help us build an open platform to create a decentralized exchange for #Bitcoin” Dorsey tweeted.
DEXs do not have a centralized intermediary that oversees token swaps. A decentralized exchange does not maintain an order book like a centralized exchange, which generally facilitates trading between users by posting individual buy and sell orders. Unlike other exchanges, users exchange tokens with each other directly. Additionally, fiat currency cannot be used in a DEX, which lacks access to traditional financial institutions and has no Know Your Customer compliance procedures.
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Jack Dorsey’s tweet cited an extensive thread by Square executive Mike Brock, TBD project chief, who outlined potential development paths for open-source DEXs.
“We believe that bitcoin will be the core currency of the internet. While there are many projects that will help make the internet more decentralized, our focus is entirely on a strong global monetary system for all but inclusion. It requires a few pieces that we think we’re missing.” Brock said in one of his tweets.
The future of Square’s TBD
Mike Brock reveals that TBD plans to make it easier for people around the world to fund bitcoin wallets that are not in custody through a platform that would enable them to ramp up bitcoin on-and-off Is. He went on to think of it as a “decentralized exchange for fiat.”
As he acknowledged, there are many gaps to fill, and the TBD team may not have been able to solve all problems alone without the help of other blockchains. “The gap needed to create this could be huge, which would make us consider other chains as a bridge as well,” he wrote.
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“Some of the gaps that we currently see around cost and scalability are solved with electricity payments. We need a solution for the exchange infrastructure between digital assets, such as stablecoins” she added.
While there are no specific dates in their communication, Brock has promised to provide frequent updates as the project progresses.
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