Digital payments firm Square’s TBD business published a whitepaper November 19, for its decentralized exchange for Bitcoin.
“We are at a crossroads in our financial system. The emergence of trustless, decentralized networks unlocks the potential for a future where commerce can happen without the permission, participation, or benefit of financial intermediaries,” according to the whitepaper.
Square and Twitter CEO Jack Dorsey announced the launch of TBD, “an open source, open development, and open roadmap business.”
Dorsey tweeted in August that they had determined TBD’s direction, and implored, “help us build an open platform to create a decentralized exchange for Bitcoin.”
“Today, we make good on that promise by sharing the first draft of the tbDEX whitepaper with the world,” the company said in a post. “We’ve published it in Github so the community can contribute.”
The tbDEX protocol aims to create ubiquitous and accessible on-ramps and off-ramps that allow the average individual to benefit from crypto innovation, according to the whitepaper. It went on to explain that the current state of Bitcoin and other crypto technologies is still beyond the reach of everyday people, as gaining access to your first cryptocurrency generally involves going through a centralized exchange.
“Accessing decentralized financial services then requires multiple asset transfers and transaction fees each step of the way. Aside from gatekeepers and cost, the complexity and sheer unintelligibility of this process today is a prohibitive barrier to entry for most. Important work is being done to overcome current drawbacks with layer two solutions, such as Lightning. But deficiencies remain. It is still prohibitively difficult for the average person, starting with traditional fiat-based payment instruments, to directly access on-ramps and off-ramps into and out of the decentralized financial system,” according to the whitepaper.