Square, Led by Jack Dorsey, has Released a White Paper for the tbDEX Decentralized Bitcoin Exchange
Square, a digital payment business based in the United States, has long been a participant in the decentralized crypto space. While Jack Dorsey, who has been active in crypto and Square, first announced the idea in August 2021, Jack’s vision has finally become a reality. Square has announced the idea for tbDEX, the company’s decentralized Bitcoin exchange, and has launched its whitepaper.
The white paper fully outlines the plans and visions for the project, which was labelled as “a protocol for discovering liquidity and exchanging assets (such as bitcoin, fiat money, or real-world goods) when the existence of social trust is an intractable element of managing transaction risk.”
The project, which was nicknamed the tbDEX protocol is aimed to help foster exchange between various platforms by bringing social trust to the scene. According to the document, the project “facilitates decentralized networks of exchange between assets by providing a framework for establishing social trust, utilizing decentralized identity (DID) and verifiable credentials (VCs) to establish the provenance of identity in the real world.”
The Need for Trust and Digitized Identity
At the centre of Jack’s proposal is the vision to build an actual state of trust and digitized identity. According to the 18-page whitepaper, “The tbDEX protocol approaches trust differently than other decentralized exchange protocols in the sense that it does not utilize a trustless model, such as atomic swaps. At first blush, this is not optimal, especially when considering the end goal of providing access to a trustless asset like bitcoin. However, the reality is that no interface with the fiat monetary system can be trustless; the endpoints on fiat rails will always be subject to regulation, and there will exist the potential for bad behaviour on the part of counterparties. This means that any exchange of value must be fundamentally based on other means of governing trust — particularly reputation.”
tbDEX will allow anyone to Transfer their Fiat Currency to Bitcoin
People’s fiat currency money will be converted immediately into Bitcoin on Jack Dorsey’s tbDEX, sparing them the trouble of passing through several gateways and platforms to do so.
The tbDEX protocol, as stated in the official announcement, allows users to negotiate and build confidence with one another or rely on a third party. When it comes to the platform’s transaction feed, tbDEX says that it will be chosen by the open market.
According to the current practice, a user who refuses to disclose information will be charged more than a user who is willing to share vital identity information.
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