Jack Dorsey published a link to the white paper for the decentralized bitcoin exchange TBD, built on his payments company Square.
First draft of white paper is up, and on GitHub: https://t.co/rn35B8gw6D https://t.co/RPZPyhlLin
— jack⚡️ (@jack) November 20, 2021
The project is described as “a protocol for unlocking liquidity and exchanging assets (such as bitcoin, fiat money, or real-world goods)”. It is named tbDEX.
The platform “leverages decentralized networks to exchange assets, providing the foundation for establishing public trust”.
“We stand at a crossroads of our financial system. The emergence of distrustful decentralized networks opens up possibilities for a future in which trading can occur without permission, participation, or the profits of financial intermediaries,” the document says.
According to tbDEX’s white paper, 1.7 billion adults worldwide have no access to the banking system. Two-thirds of them own mobile phones that will help them access financial services.
The document notes that the first cryptocurrency purchase typically involves using a centralized exchange, and accessing decentralized financial services requires multiple asset transfers and fees at each step. TBDEX aims to solve this problem.
Instead of a governance token, developers propose that participants align trust directly with one another or, by mutual agreement, approach a trusted third party who will vouch for one of them.
Trade fees will be set by the market and will depend on the amount of information disclosed. Anonymous trades will be more expensive.
“The tbDEX protocol provides a secure exchange with only minimal identification information required by the counterparty. The protocol itself will not collect any personal data,” the document says.
The developers note that the published white paper describes a proposed plan for public feedback and is not final. The team intends to update the document in future revisions.
Earlier, Jack Dorsey said Square is exploring the possibility creating a device to mine the first cryptocurrency with open-source code.
As reported in July, the company announced the creation of a hardware wallet and a service for storing bitcoin. The development team is led by Max Giz, head of Square’s hardware security team.
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