Jack Dorsey Plans A Bitcoin Centric Decentralized Exchange (DEX)
Dorsey has been still unsure of his plans for Bitcoin until he confirmed via Twitter that he wanted to build a Bitcoin dex.
In July, Square announced the creation of a bitcoin-centric decentralized crypto business unit, although additional features are rare. They named the cheekbones TBD because the exact nature and shape of those symptoms still need to be “determined”.
“There have been a lot of rumors about what TBD is and what it is not.”
Sharing more information about this He added,
“This is the problem we are going to solve: fund a non-custodial wallet anywhere in the world through a platform. You can consider this as a decentralized transfer to Fiat.”
Dorsey further took this tweet and confirmed this important announcement in minutes, and thus announcing to TBD in a tweet to its 5.6 million followers that it would “help build an open platform for creating a decentralized exchange for Bitcoin”.
Decentralized exchange (DEX) is a type of cryptocurrency exchange that allows peer-to-peer transactions such as borrowing, lending, and trading without a lending officer or broker in between trades.
While the DEX operated on a smart bit of codes that are called Smart contracts, these contracts work on intelligent transparent systems that eliminate financially ridiculous business and fraud.
The unique reason for this is that the basic bitcoin blockchain network is slow and scalable to handle the thousands of transactions required for a typical or decentralized – trading exchange.
The Bitcoin network is primarily designed for limited use of peer-to-peer payments. Those programming limitations have reduced Bitcoin to a major repository of value and inflation – the ability to handle high volume output is unknown.
DEXs and Defi should have the same level of speed and scalability as Bitcoin – so far. That balance could shift significantly to Bitcoin if it had the support of Square developers and the Twitter recipients around it.
Although the TBD management team agreed to the point many questions are still unanswered.
Dorsey has also already announced its previous developments of “non-custodial, unlicensed, decentralized financial services” and that “its primary focus is on bitcoin”.