Square published a whitepaper that outlines its plans for a decentralized exchange called tbDEX
Square published a whitepaper describing its plans for a new decentralized exchange called tbDEX.
Square releases whitepaper for decentralized Bitcoin exchange
The financial services company led by Twitter’s Jack Dorsey wants to do more with Bitcoin instead of just letting people buy it on its Cash App. It allows people to trade BTC and fiat money on the popular decentralized exchange (DEX) with Ethereum. The main goal of tbDEX will be to provide an easier way to convert funds between fiat and cryptocurrency.
“The tbDEX protocol aims to create ubiquitous and accessible on-ramps and off-ramps that allow the average individual to benefit from crypto innovation,” the project’s website reads.
Square’s TBD division, first announced in July, today released a white paper presenting tbDEX.
We made a white paper. https://t.co/ffvYGjQQ7T
— TBD (@TBD54566975) November 19, 2021
The white paper claims tbDEX is a protocol for discovering liquidity and exchanging assets safely without knowing the identity of other parties. Moreover, it says the protocol goes around financial intermediaries and other gatekeepers that guard the borders between fiat and digital currencies.
While tbDEX is built around the concept of Bitcoin, it isn’t necessarily built atop the Bitcoin blockchain. It’s just a series of on- and off-ramps to BTC and other cryptocurrency networks where precisely the protocol lives aren’t clearly stated in the highly technical yet high-level white paper.
Square’s approach is very different from what is seen on most decentralized exchanges, which typically only deal with cryptocurrencies and thus can allow users to remain completely anonymous. However, tbDEX seems to have similar goals to other projects that have attempted to deliver projects on and off the decentralized ramp, such as the Interledger project and Stellar’s Anchor.
Jack Dorsey, the founder, and CEO of Square, originally announced plans for the decentralized exchange in August. Square already allows users to buy, sell, and spend Bitcoins through its Cash App. However, these transactions are handled by Square itself, not the upcoming decentralized exchange it aims to build.
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