It’s no secret that Twitter and Square CEO Jack Dorsey has been a crypto enthusiast for quite some time. This is no stranger to the folks who follow him on Twitter, so it really comes as no surprise to hear more Dorsey bitcoin news.
In July, Jack Dorsey announced the creation of a Bitcoin-Focused Business Division at Square (TBD) that would “focus on building an open developer platform with the sole aim of simplifying the creation of non-custodial, license-free and decentralized financial services.” . “
Development of an open DEX geared towards Bitcoin
Now Jack Dorsey and Square have gone one step further. Square’s new TBD division is developing a Bitcoin-centric decentralized exchange (DEX). The platform will be accessible and open source, but users will be able to fund their wallets with fiat currency.
Related reading | Why Square will start a new Bitcoin-focused company, according to CEO Jack Dorsey
“We set the direction of @ TDB54566975: Help us build an open platform to create a decentralized exchange for #Bitcoin,” Dorsey tweeted.
DEXs do not have a centralized intermediary overseeing the token swaps. A decentralized exchange does not keep an order book like a centralized exchange, which usually facilitates trading between users by posting individual buy and sell orders. Unlike other exchanges, users exchange tokens directly with one another. In addition, fiat currency cannot be used in a DEX that does not have access to traditional financial institutions and has no compliance procedures for the customer.
BTC price drops below $ 49,000 | Source: BTCUSD on TradingView.com
Jack Dorsey’s tweet quoted an in-depth thread from Square manager Mike Brock, TBD project leader, which outlined the potential development paths for the open source DEX.
“We believe Bitcoin will be the local currency of the internet. While there are many projects out there that will help make the internet more decentralized, our focus is solely on a solid global monetary system for all. But getting it all in takes a few parts that we think we miss, ”Brock said in one of his tweets.
The future of Squares TBD
Mike Brock revealed that TBD plans to make it easier for people around the world to fund a Bitcoin wallet that is not held on a platform that allows them to create entry and exit ramps in Bitcoin. He said to consider it a “decentralized exchange for Fiat”.
As he admitted, there are many loopholes to be filled and the TBD team may not be able to solve all of the problems on its own without the help of other blockchains. “The gaps required for construction may be too large, which would also lead us to view other chains as bridges,” he wrote.
Related reading | This is why all companies should buy Bitcoin, says Square’s CFO
“Some of the gaps we are currently seeing in terms of cost and scalability. Blitz is solved with payments. We need a solution for the exchange infrastructure between digital assets such as stablecoins. “ He added.
Although there are no exact dates in his communication, Brock has promised to provide regular updates as this project progresses.
Featured image from Kelscrypto, chart from TradingView.com