Square, the online payments business founded by Twitter CEO Jack Dorsey, has formally issued a whitepaper outlining the workings of its new decentralized exchange platform, dubbed “tbDEX.” According to the information provided, the protocol would enable users to deal in real time between the worlds of cryptocurrencies and fiat currencies (national currencies such as Rupees and Dollars), bridging the gap between physical and digital money. To do so, the tbDEX team is concentrating on developing “social trust” in the crypto world, so that more people may participate in and profit from cryptocurrencies’ autonomous financial system.
In this situation, tbDEX will allow fiat currency to be converted to Bitcoin and vice versa. Bitcoin is the oldest cryptocurrency, going back to 2009, and is now trading for $63,350 (approximately Rs. 47 lakh) per unit.
According to the whitepaper, “tbDEX is a system for identifying liquidity and trading assets (such as Bitcoin, fiat money, or real world items) where the existence of social trust is an essential part of regulating transaction risk.” “It offers the infrastructure to establish a ubiquity of on-ramps and off-ramps directly between fiat and crypto financial systems without the requirement for centralised middlemen and trust brokers,” says the company.
The tbDEX protocol also features an intriguing transaction fee policy.
The quantity of information each party chooses to reveal will minimize the transaction fees needed to convert their fiat cash to Bitcoin. As a result, complete anonymity on the tbDEX protocol will cost higher money.
“The tbDEX protocol also enables the safe exchange of the bare minimum of identification information acceptable to counterparties in order to meet requirements, whether legal, regulatory, or risk-related in any other way.” “The protocol does not gather or record any personally identifying information,” the tbDEX team stated in a blog post.
While some Twitter users were enthusiastic about Dorsey’s decentralized exchange app, others were concerned that it would introduce more “know-your-customer (KYC)” information into the crypto world. Since the beginning of 2021, the Twitter CEO has been working on this project. Mike Brock, the project’s leader, is constantly tweeting on the project’s progress. Dorsey, a crypto enthusiast, has previously announced the creation of a hardware wallet and service to make Bitcoin ownership more accessible. Dorsey is incorporating features of the crypto culture into Twitter itself, in addition to foraying into the field with completely new projects.