- Square published a white paper describing an outline for his company’s decentralized bitcoin swap, tbDEX.
- The leader of strategic development, Mike Brock, is in charge of its outline and operation.
Jack Dorsey, the co-founder of Square, released a white paper describing an outline for his decentralized bitcoin swap tbDEX. The tbDEX does not intend to utilize a skeptical design. As a consequence, it will not have its unique token. Otherwise, it’s a content protocol made to easen trust and correlation free of dependence in a syndicate to provide passage.
The launch of the white paper came several months after Jack Dorsey stated the plan to establish an open podium for DEX. He mentioned that TBD, a selection within Square focusing on improving DeFi services, would develop the market.
Mike Brock is taking charge of the white paper
The manager of the department, Mike Brock, is in charge of the whitepaper outline. Earlier, he tweeted what they are focusing on answering—simplifying their programs, considering it as a decentralized fiat exchange platform.
Besides, the exchange plans to add extra features that will further decentralize it. In a nutshell, this platform wants to be more. Not just a mere decentralized exchange. For instance, the platform expects all actors to pass know-your-client (KYC). The feature helps clients to conform to rules pegged on their region of existence. After this verification step, clients can connect their folders to tbDEX and exchange coins.
Also, the released whitepaper suggested the disposal of blockchain analytic solutions. The analytical should be cast into the DEX. Alternatively, use the third faction to monitor activities on them. However, this is a contentious discussion.
tbDEX has excellent verification steps enhancing the security of users
The system will allow authorities to counter-check payment IDs. Moreover, It will enable verification of wallet adress with know-your-client information. This will help to establish the personal characters of transacting parties. Nonetheless, clients feel it’s a good move. They claim that such monitoring methods give solutions to illegal exercises.
However, tbDEX also has centralized features. And some of the hallmarks could elicit backing from fans. One central element that has prominently featured on this document is chargebacks. The chargeback feature is lacking in many decentralized exchanges. Suppose square implements chargebacks. It will be able to invalidate actions on the tbDEX. In some circumstances, clients undergo huge damages during DeFi rug pulls.
At the moment, Square is asking for feedback on its document through Twitter. And the online family is not disappointing either. One tweep, @landabaso, had this to ask, “Just read it. How can this work without Proof of Work? In other words, what are the risks if I don’t behave correctly? What prevents me from creating millions of DIDs & 1 PFI and simulating thousands of transactions between DIDs & PFI creating an invalid high reputation to the PFI?”