Square, a financial services company run by Twitter founder Jack Dorsey, wants to do more with bitcoin.
It shows this by not being satisfied with simply allowing people to buy Bitcoin from the “Cash” application.
It is even working on a way to allow people to trade bitcoin and fiat currencies on a decentralized exchange (DEX) platform possibly based on Ethereum.
Square’s TBD division today released a technical document introducing the tbDEX platform.
The white paper states that “tbDEX” is a protocol for discovering liquidity and exchanging assets (such as bitcoin, fiat money, or real-world commodities) securely without knowing the identity of third parties.
The protocol wraps around financial intermediaries and others such as central trading platforms that guard the boundaries between fiat currencies and digital currencies.
Although “tbDEX” is based on the concept of Bitcoin, it is not necessarily based on the Bitcoin blockchain.
The exact location of the new protocol is not specified in the published white paper.
One main question that comes to mind is:
Why not use the Ethereum infrastructure as the network supports smart contracts to allow transactions beyond just currency, has decentralized trading platforms and identity solutions ready to build on and bridges between Ethereum and other networks.
The quick answer is:
Dorsey is a big fan of Bitcoin.
He also did not earlier show any interest in Ethereum and other cryptocurrencies while professing his love for Bitcoin.
Dorsey said of Bitcoin last June:
If I wasn’t on Square or Twitter, I’d be working on Bitcoin.
If Bitcoin needs more help than Square or Twitter, I’ll leave them to Bitcoin.
Square has been part of the peer-to-peer payment revolution, making it easier for friends to send cash from their bank accounts or small vendors to receive credit card payments.
tbDEX will extend this mission to the crypto space, where people will not send cash held in bank accounts but from crypto wallets they own themselves.
But newcomers to the cryptocurrency space must first jump from the fiat world to the digital world.
This usually starts with buying cryptocurrency with a bank card on a central platform such as Coinbase or Binance.
The white paper published by Square states that:
It is still very difficult for the average person, starting with traditional securities-based payment instruments, to directly access in and out of a decentralized financial system.
We need a better bridge than this in the future.
The tbDEX protocol is geared towards solving this problem.
Long-Term Bitcoin Holders Avoid Panic Selling…Details Here
India will not allow trading of cryptocurrencies that lack government approval