- Square has announced the proposal for the exchange of Bitcoin without using any centralized control.
- tbDEX Protocol will bridge fiat money with Bitcoin and other digital assets.
- They have shared the tbDEX Whitepaper for public access.
In the recently published Whitepaper, Square has put forward a decentralized bitcoin exchange proposal (tbDEX) to ensure the safe exchange of Bitcoin and other digital assets in a decentralized environment of trust, not compromising quality. TBD, a business created by Square, has released its Whitepaper for the tbDEX protocol this Friday.
The arena of blockchain and other technologies is changing rapidly. These changes are limited not only to improvements in the pre-existing technologies but also include some breakthroughs. In recent days, if there is some significant development in blockchain transactions that is worth calling a breakthrough, then it is tbDEX. Square, a reliable and now trending blockchain, has developed the protocol to tackle the problem of trust in exchanges.
Square’s CEO, Jack Dorsey, and his team worked on this project and successfully presented a solution to tackling the risk issue in exchanges using blockchain. They have released the details of this project on their website and invited developers to work further on it. It has been compared to the significant development in the form of the Bitcoin whitepaper. Now, tbDEX is a continuation of it, ensuring that the aims of the Bitcoin project are taken to new horizons.
tbDEX conforms with Bitcoin, rethinking business models
Square has announced that the tbDEX conforms to the aims of the Bitcoin project, i.e., the participation of individuals in digital transactions does not involve any third party, ensuring trust and accessibility. The main idea behind their Whitepaper is inclusivity, guaranteeing individuals to participate in the digital economy and have open access to it without any restrictions.
tbDEX has been termed as ‘rethinking of business models,’ which will help evolve the complete process. It is a futuristic project that keeps in view the needs of the Bitcoin blockchain system and the evolution of business models. Square aims to do it by creating value using the tbDEX. It is a future whose importance nobody can deny; they claim it was supposed to happen, and they have laid out the possibilities in the form of the tbDEX Whitepaper. They have published the details of the protocol on GitHub, outlining the details of the project.
Solving the trust Issue – tbDEX
The main problem, as per the announcement, is the replacement of fiat money. Though it is not possible currently, a replacement can be sought in the form of bridging the two, i.e., fiat money and blockchain currency. Once this is done, it will be easy for users to utilize blockchain/crypto assets for their daily needs. This will lead to a system where the trust issue won’t be compromised, and accessibility will be easily possible. This protocol aims to bring crypto’s use to daily life.
Keeping the trust issue in view regarding the blockchain transactions, DIDs are used. The problem arises if this is not adequately implemented and facilitated. The proposed solution to this problem is the tbDEX protocol which will help with the negotiation of trust directly on an individual level; they can also involve a third party if both parties consent to it. They will make a transaction on a risk basis which will demand transaction costs.
An easy solution using the tbDEX is the transaction costs being directly linked with anonymity or disclosure. If a party discloses more of their identity, the lower costs they will pay for the transaction. This way, trust and anonymity are directly linked. To fulfill the legal or other requirements, this protocol will also help exchange information between parties. What makes it more reliable is the encryption of information so that even the protocol cannot collect the information, nor is it kept in the record.
Square’s decentralized bitcoin exchange proposal (tbDEX) will surely change the present and future of blockchain transactions. By providing the infrastructure necessary to create on-ramps and off-ramps directly between the fiat and crypto financial systems, tbDEX makes centralized intermediaries and trust brokers redundant and unnecessary.