Inside Square’s whitepaper for its Bitcoin decentralized exchange ๐จ This article is 3 years old...
Inside Square’s whitepaper for its Bitcoin decentralized exchange
Square, through its recently released tbDEX white paper, has introduced a number of controversial features into the decentralized exchange concept.
2 min read
Updated: Nov. 25, 2021 at 2:31 pm UTC
Photo by Madison O'Friel on Unsplash and Karolina Grabowska on Pexels
In this year alone, the crypto adventure of the co-founder and CEO of Square and Twitter, Jack Dorsey, has been exhilarating. This time around, his payment-focused tech company, Square has released the white paper of its proposed decentralized Bitcoin exchange, codenamed as tbDEX.
The whitepaper described the design philosophy of the proposed tbDEX, as one without a trustless model and no governance token, unlike most decentralized exchanges (DEX).
tbDEX introduces groundbreaking features
While many crypto enthusiasts are used to DEXs that require little to no registrations, tbDEX bucks that trend as it requires that all users of its platform satisfy the customary Know-Your-Customer (KYC) check that is peculiar to their area. Upon completion of this policy, users would then be able to connect their wallets to tbDEX and swap tokens.
We made a white paper. https://t.co/ffvYGjQQ7T
— TBD (@TBD54566975) November 19, 2021
Apart from the above, the tbDEX white paper also revealed that a blockchain analytic tool will be integrated into the platform so as to keep track of transactions on the platform. This feature could allow authorities to know which user is performing what transaction thereby negating one core value of crypto transactions; privacy.ย
Members of the crypto community have, however, been unable to reach a compromise on this because some schools of thought believe the new feature is necessary so as to prevent illegal activities on the platform while others have declared that the new feature is overreaching.
One interesting feature introduced into the Bitcoin-focused decentralized exchange is the โchargebackโ feature that would enable transactions to be reversed. If this is enabled, it means investors on a project could be safeguarded from losses that tend to happen when a project is rug pulled.
Apart from Square, Jack Dorseyโs Twitter has also been experimenting with crypto. You would recall that the social media site recently introduced Bitcoin Tipping features. This would allow content creators to receive Bitcoin tips as a reward for their work on the site.ย
It was also revealed that the platform has been working on integrating NFT features into Twitter. The new feature is expected to help identify and differentiate the real owner of an NFT project.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Jack Patrick Dorsey, born on November 19, 1976, is a testament to the American dream of innovation and entrepreneurship.