Twitter CEO Jack Dorsey's online payments company Square has officially released a whitepaper detailing the working of its new decentralised exchange platform called “tbDEX.” As per the information shared, the protocol will allow people to transact between the worlds of cryptocurrencies and fiat currencies (national currencies like Rupees and Dollars) in real time, bridging the gap between physical and crypto finances. To enable this, the tbDEX team is focusing on establishing “social trust” regarding the crypto space, so that more people can join in and benefit from the independent finance system of cryptocurrencies.
In this particular case, tbDEX will allow the conversion of fiats into Bitcoin and vice versa. Trading at $63,350 (roughly Rs. 47 lakh) per token, Bitcoin is the oldest cryptocurrency, dating back to 2009.
“tbDEX is a protocol for discovering liquidity and exchanging assets (such as Bitcoin, fiat money, or real world goods) when the existence of social trust is an intractable element of managing transaction risk,” the whitepaper says. “It provides the infrastructure necessary to create a ubiquity of on-ramps and off-ramps directly between the fiat and crypto financial systems without the need for centralised 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 into Bitcoin. Complete anonymity will hence, cost more fees on the tbDEX protocol.
“The tbDEX protocol also facilitates the secure exchange of the minimum necessary identity information acceptable to counterparties in order to satisfy requirements, be they legal, regulatory, or related to any other consideration of risk. The protocol itself neither collects nor records any personally identifiable information,” a blog post shared by the tbDEX team said.
While some Twitter users seemed excited about Dorsey's decentralised exchange app, others feared that this would sneak in more elements of the “know-your-customer (KYC)” details into the crypto space.
The Twitter chief had begun addressing this project since the early months of 2021. The team behind this project is being led by Mike Brock, who keeps tweeting on ongoing developments.
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 distribute power to the masses and unleash human potential for good, and I'm convinced this is the next step.
— Mike Brock (@brockm) July 15, 2021
Dorsey, who is a strong crypto supporter, had also announced the development of a hardware wallet and service to make Bitcoin possession more mainstream.
Along with foraying into the crypto space with totally new ventures, Dorsey is integrating elements of the crypto culture within Twitter itself as well.