Square releases details on a decentralized Bitcoin exchange

The new exchange would be built by Square's new non-custodial division, TBD, which develops decentralized financial services.

Square releases details on a decentralized Bitcoin exchange

In a white paper released recently, payments giant Square detailed a new decentralized protocol for exchanging digital and other assets called tbDEX.

Through the use of decentralized identity and verifiable credentials to establish the provenance of identity, tbDEX facilitates decentralized networks of asset exchange.

TBD developer wrote in an introduction post that the protocol "aims to create ubiquitous access points to cryptocurrency innovation to enable the average person to take advantage of it."

In order for the community to contribute to the white paper, TBD published it on Github.

In August, Square's CEO Jack Dorsey, who is also the CEO of Twitter, announced plans to create a decentralized bitcoin exchange based on an open developer platform.

The new exchange would be built by Square's new non-custodial division, TBD, which develops decentralized financial services.

The new project is being led by Mike Brock, who is Square's head of strategic development. Previously, Brock tweeted, "This is the problem we're going to solve: build on- and off-ramps to bitcoin that make funding a non-custodial wallet worldwide easy. Imagine this as a decentralized exchange for fiat."

Using Square, friends can send cash from their bank accounts or small vendors can accept credit card payments. Square is part of the peer-to-peer payment revolution.

The tbDEX would expand this mission into the crypto space - on the tbDEX, users would no longer be sending cash from bank accounts but from crypto wallets they own themselves.

A person can still have a difficult time directly accessing on-ramps and off-ramps into the decentralized financial system, starting with the use of traditional fiat-based payment instruments," notes the white paper. "We need a better bridge into this future." TBDEX addresses this issue.