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HomeCryptoCurrencySquare published its proposal for a decentralized Bitcoin exchange

Square published its proposal for a decentralized Bitcoin exchange

Square, the bitcoin payment processor led by Jack Dorsey, CEO of Twitter, released this Friday, November 19, the “white paper” or technical document of its decentralized exchange (DEX). The protocol is called tbDEX.

According to the announcement, tbDEX will function as an entry and exit gateway for the exchange of fiat and bitcoin currencies . Its objective is to build bridges between the “fiat world and the world of cryptocurrencies”, allowing the “average individual” to benefit from the use of innovations in the sector.

Square had been working on a proposal for its decentralized services platform from the middle of this year. As reported by CriptoNoticias, Jack Dorsey himself announced in July that the goal was to build an open protocol to “facilitate the creation of decentralized financial services, without custody and without permission.” At the end of August, Dorsey approached Bisq, a DEX platform that has been operating for more than 5 years, to exchange ideas to help him develop the new Square DEX protocol.

TbDex proposes to manage the issue of trust between the parties, or «social trust», using a identification system which they called DID (decentralized identifiers). The model “allows participants to negotiate trust directly with each other, or to trust mutually and voluntarily in trusted third parties to answer for the counterpart.”

The protocol even incorporates a adjustment of transaction costs associated with risk . That is, the greater anonymity, the higher the rates and vice versa. They believe that, with this approach, the market will find its own equilibrium.

As initially suggested by Jack Dorsey, the The proposal does not incorporate a federation that is in charge of the permissions or establishes the required levels of trust, nor does it incorporate a governance token.

On the other hand, tbDEX will provide the necessary infrastructure for access to the platform and the direct “entry and exit ramps” between fiat currency and bitcoin, possible from anywhere in the world. This without resorting to centralized intermediaries.

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Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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