Fintech giant Square released a whitepaper of its decentralized exchange for bitcoin (EXANTE: Bitcoin) called tbDEX. According to the description of the initiative, the tbDEX protocol aims to create "ubiquitous and accessible on-ramps and off-ramps." The protocol proposes a solution that does not rely on a centralized party to control permission or access to the network.
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"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," the description says.
However, developers behind the project admit that the highest level of anonymity will inevitably trigger high transaction costs. At the same time, those who do not want to keep a low profile, will not have to pay higher fees. This approach to price discovery allows the marketplace "to find the right balance," tbDEX says.
Square first announced plans to build a bitcoin DEX in August this year. The project's leader Mike Brock believes that the current centralized solutions like Coinbase and Cash App have a "number of issues." The Square's new department is focused on creating an easy way to fund a non-custodial wallet through a platform to build on- and off-ramps into bitcoin, Brock added.
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