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Updated November 21st, 2021 at 15:36 IST

Jack Dorsey's Square releases white paper for tbDEX decentralised Bitcoin exchange

Jack Dorsey's tbDEX will convert people's fiat currency money directly into Bitcoin, saving people the hassle of going through multiple platforms for the same.

Reported by: Shikhar Mehrotra
jack Dorsey and Square release white paper for tbDEX decentralized Bitcoin exchange
Image: PTI | Image:self
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Square, the US digital payment company has long been on a decentralised cryptocurrency exchange. While the project was announced by Jack Dorsey and Square back in August 2021, Dorsey's vision has now come to reality. On November 20, 2021, Square released the proposal for tbDEX, the company's decentralised Bitcoin exchange. 

While releasing the proposal, Square mentions in an official blog post that "In order to achieve this, the nature of financial institutions needs to evolve. We can either embrace this change — by investing in this future as a public good by rethinking our business models and ways to create value." Adding to it, Square says "or we can let this future happen to us." The decentralised Bitcoin exchange aims to act as a bridge between the regular fiat currency and the modern cryptocurrency. 

People will be able to convert their fiat money to Bitcoin using tbDEX

Jack Dorsey's tbDEX will convert people's fiat currency money directly into Bitcoin, saving people the hassle of going through multiple portals and platforms to do the same. As mentioned in the official announcement, the tbDEX protocol allows users to negotiate and build trust with each other or rely on a third party. Talking about the transaction feed on the platform, tbDEX mentions that it will depend and be determined by the free market. Following the practice, it looks like a user who would not share information would have to pay more than the user who is ready to share necessary identity information.  

As mentioned in the abstract of the original white paper launched by tbDEX, it "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." 

Square first announced that it had bought Bitcoin back in October 2020, when the firm bought 4,709 Bitcoins at a total purchase price of $50 million. Thereafter, the company mentions in its fourth quarter and full-year report that it purchased more than 3,300 bitcoins at a total price of $170 million, which brings the total investment to $220 million. In September 2021, Bitcoin's price was floating under $50,000 or Rs. 37.51 lakhs but recently, it surged beyond $60,000. The current Bitcoin price in India is over Rs. 47 lakhs.  

Image: PTI

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Published November 21st, 2021 at 15:36 IST

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