American payments giant Square today released a whitepaper for its proposal for a decentralized bitcoin exchange – tbDEX. This project was first announced by Square and Twitter CEO Jack Dorsey in August.
The project aims to Bitcoin is the national currency for the Internet. “To achieve this, the nature of financial institutions must evolve. We can either embrace this change – investing in this future as a public good, rethinking our business models and how we create value – or let this future happen to us, ”the company wrote on its blog.
Explaining the project, the company notes that “people receive wages and pay for goods and services in paper currency. They must pay taxes in paper currency. So how do we unleash the potential of bitcoin and decentralized financial infrastructure when most of us still live in the world of fiat money? To do this, we need to build bridges between the world of fiat money and cryptocurrency. “
The project highlights how the upcoming tbDEX will bridge the existing gap between fiat and bitcoin. It is suggested that tbDEX offer people a direct way to convert their fiat money to Bitcoin without having to go through multiple platforms. “We offer a solution that doesn’t rely on federation to control permissions or network access; it also does not dictate the necessary level of trust between counterparties, ”the statement said. “There is no control 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 executive summary available on the tbDEX website points to the need for such a platform and adds: “The economy must be inclusive. We need to build springboards to this future where everyone can access and participate in the economy. ”
Refining the transaction fees on tbDex, the annotation explains that it will be determined by the free market based on the amount of information that each participant is willing to disclose. This means complete anonymity will cost more than full disclosure of personal information. “The tbDEX protocol also facilitates the secure exchange of minimum required identification information acceptable to counterparties in order to satisfy requirements, whether legal, regulatory or related to any other risk considerations.”
Meanwhile, Mike Brock, head of strategic development at Square, previously tweeted that “this is the problem we are going to solve: to make it easier to fund a non-custodial wallet anywhere in the world through a (tbDEX) platform to create entry and exit into bitcoin … You can think of it as decentralization[d] exchange for fiat “.