San Francisco-based financial services and digital payments company Square recently released a whitepaper for its decentralized bitcoin exchange proposal.
Square Publishes Whitepaper for its DEX
According to an official statement posted by one of the project developers, the decentralized exchange (DEX) project, dubbed tbDEX, is set to merge the gap between fiat and bitcoin.
Despite the widespread growth of the cryptocurrency industry and digital assets, a high percentage of people still receive their paychecks, pay for goods and services, pay taxes, and a lot of other things with FIAT currencies.
tbDEX aims to offer users a direct way to easily convert their rapidly depreciating FIAT currencies into bitcoin in a free market, without going through multiple platforms.
“The tbDEX protocol aims to create ubiquitous and accessible on-ramps and off-ramps that allow the average individual to benefit from crypto innovation,” the paper reads.
While it is true that some decentralized platforms offer this direct fiat-to-bitcoin passage, the complexities involved in the conversion often deter new entrants into the space, a problem that Square’s tbDEX intends to tackle.
No Governance Token
The whitepaper also noted that tbDEX will not work like most decentralized exchanges available in the market today.
It pointed out that the platform will not have its native governance token and that it will be designed to enable trust among participants without relying on a central body to control access.
“We propose a solution that does not rely on a federation to control permission or access to the network; nor does it dictate the level of trust required between counterparties. There is no governance token. Instead, the tbDEX protocol allows participants to negotiate trust directly with each other — or mutually and voluntarily rely on trusted third parties to vouch for the counterparty,” it added.
Additionally, the transaction fees on the platform will be determined by the free market, depending on the amount of information each network participant is willing to divulge.
To encourage contributions from the crypto community and welcome suggestions from interested developers, the tbDEX whitepaper has also been published on Github.
One Step Closer
Earlier in August, Square’s CEO, Jack Dorsey, who also happens to be the owner of the popular microblogging platform, Twitter, revealed that his digital payments company intends to build a bitcoin-centric DEX via its new development division, TBD.
Fast forward to three months, the tbDEX proposal is one step closer to becoming a reality with the release of its whitepaper.