It’s no secret that Jack Dorsey, Square CEO and Twitter user, has been a crypto enthusiast since a long time. People who follow him on twitter are not unfamiliar to this, so it’s not surprising that we hear more news from Dorsey – Bitcoin.
Jack Dorsey announced that Square (TBD), a Bitcoin-focused business, had been created. It was “focused to create an open development platform for financial services. non-depositories, unauthorized, and decentralized. “
Development of an open platform DEX focusing on Bitcoin
Square and Jack Dorsey are now even more ambitious. Square’s TBD division has begun work on a decentralized Bitcoin exchange (DEX). The platform will remain open source and accessible. However, users will be able fund their wallets with fiat currencies.
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“We have determined the direction for @ TDB54566975 – help us create an Open Platform to create a decentralized Exchange for #Bitcoin.” Dorsey Tweet.
Decentralized exchanges don’t have a central intermediary that oversees token trading. A decentralized exchange does NOT manage an orderbook like a central exchange. It facilitates transactions between users by posting individual sell and buy orders. Users exchange tokens directly between each other unlike other exchanges. Fiat currency cannot also be used in a DEX. This exchange does not have access or compliance procedures for know-the-customer.
Source :| Source: TradingView.com - BTCUSD
Jack Dorsey tweeted a long thread from Square Director Mike Brock (TBD project manager), which outlined possible development avenues for open-source DEX.
“We believe that Bitcoin will be the native currency of the Internet. While there are many projects to make the internet more distributed, we are only interested in a healthy global financial system for all. We think there are a few pieces missing that make it impossible to include everything. Brock said it in one his tweets.
Square’s future will be decided
Mike Brock said that TBD plans make it easier to fund a bitcoin account that isn’t owned by people through a platform which allows them to create bitcoin ramps, exits, and more. He described it as a “decentralized fiat exchange”.
He acknowledged that there are many gaps to be filled and that the TBD Team may not be capable of solving all of these issues without the help from other blockchains. “The gaps needed to build this may be too big, which would also make us see other chains as a bridge,” he wrote.
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“Some of the gaps we’re seeing right now are around cost and scalability. Lightning can be solved with payments. We need a solution for the exchange infrastructure between digital assets, like stablecoins ” He continued.
Brock has committed to providing frequent updates on the progress of this project, even though there are no dates.
Featured image from Kelscrypto. Chart from TradingView.com