Twitter CEO Jack Dorsey’s online payments company Square has officially released a white paper detailing the workings of its new decentralized exchange platform called “tbDEX”. According to the information shared, the protocol will allow people to transact between the world of cryptocurrencies and fiat currencies (national currencies such as the rupee and dollar) in real time, bridging the gap between physical and crypto finance. To enable this, the tbDEX team is focusing on establishing “social trust” with respect to the crypto space, so that more people can become involved and benefit from the independent finance system of cryptocurrencies.
In this particular case, tbDEX would allow the exchange of fiat currency into bitcoin and vice versa. Trading at $63,350 (approximately Rs 47 lakh) per token, Bitcoin is the oldest cryptocurrency, dating back to 2009.
“tbDEX is a protocol for liquidity discovery and discovery of assets (such as bitcoin, fiat money, or real-world goods) when the existence of social trust is a difficult element of managing transaction risk,” White paper it is said. “It provides the necessary infrastructure to create ubiquity on-ramp and off-ramp directly between the fiat and crypto financial systems without the need for centralized intermediaries and trust brokers”.
The tbDEX protocol also has an interesting approach towards transaction fees.
The amount of information each party decides to disclose will reduce the transaction fees required to convert their fiat currencies to bitcoin. So complete anonymity will cost more fees on the tbDEX protocol.
“TBDEX also facilitates the secure exchange of the minimum necessary identification information acceptable to counterparties to meet protocol requirements, whether legal, regulatory, or related to any other considerations of risk. The protocol itself does not allow any personal collects or records personally identifiable information,” a blog post Shared by the tbDEX team.
While some Twitter users seemed excited about it. Dorsey’s Decentralized exchange app, others feared that it would sneak into more elements of the “as-your-customer (KYC)” description in the crypto space.
NS Twitter The chief started addressing the project from the early months of 2021. The team behind this project is led by Mike Brock, who keeps on tweeting on the ongoing development.
I also believe that technology has always been a story of decentralization. From the printing press to the internet to bitcoin – technology has the power to deliver power to the masses and unleash human potential for good, and I believe this is the next step.
— mike brock (@brockm) July 15, 2021
Dorsey, a strong crypto supporter, also announced the development of a hardware wallet and service to make bitcoin possession more mainstream.
As well as entering the crypto space with entirely new ventures, Dorsey is also integrating elements of the crypto culture within Twitter.