Jack Dorsey Plans to Build A Decentralized Exchange For Bitcoin
It is no secret that Twitter and Square CEO, Jack Dorsey, has been a crypto enthusiast for quite some time. The people who follow him on Twitter are no strangers to this, so it really is no surprise to hear another Dorsey-Bitcoin news.
In July, Jack Dorsey announced the emergence of a Bitcoin-Focused Business Division at Square (TBD) that was “focused on building an open developer platform with the sole goal of making it easy to create non-custodial, permissionless, and decentralized financial services.”
Developing An Open-Platform Bitcoin-Focused DEX
Now Jack Dorsey and Square have taken it a step further. Square’s new TBD division is developing a Bitcoin-centric Decentralized Exchange (DEX). The platform will be accessible and open-source, yet users will be able to fund their wallets with fiat currency.
Related Reading | Why Square Will Create New Bitcoin-Focused Company, According To CEO Jack Dorsey
“We’ve determined @TDB54566975’s direction: help us build an open platform to create a decentralized exchange for #Bitcoin” Dorsey tweeted.
DEXs don’t have a centralized intermediary that oversees the token swaps. A decentralized exchange does not maintain an order book like a centralized exchange, which typically facilitates trades between users by posting individual buy and sell orders. Users exchange tokens directly with each other, unlike other exchanges. Additionally, fiat currency cannot be used in a DEX, which lacks access to traditional financial institutions and has no know-your-customer compliance procedures.
BTC price falls below $49K | Source: BTCUSD on TradingView.com
Jack Dorsey’s tweet quoted an extensive thread by Square executive Mike Brock, TBD project head, who outlined the potential development paths for the open-source DEX.
“We believe Bitcoin will be the native currency of the internet. While there are many projects that will help make the internet more decentralized, our focus is solely on a sound global monetary system for all. But including all requires a few pieces we think we are missing.” Brock said in one of his tweets.
The Future Of Square’s TBD
Mike Brock revealed that TBD is planning to make it easier for people all around the world to fund a bitcoin wallet that is not custodial via a platform that enables them to create on-and-off ramps into bitcoin. He said to think about it as a “decentralize exchange for fiat”.
As he acknowledged, there are many gaps to be filled, and the TBD team may not be able to resolve all of the problems alone without using the help of other blockchains. “The gaps needed to build this may be too large, which would also have us consider other chains as a bridge,” he wrote.
Related Reading | This is why all companies should buy Bitcoin, says Square’s CFO
“Some of the gaps we currently see around cost and scalability. Lightning is solved with payments. We need a solution for exchange infrastructure between digital assets, like stablecoins” He added.
While there are no specific dates in his communication, Brock has promised to provide frequent updates as this project progresses.
Featured image from Kelscrypto, Chart from TradingView.com