Proposed tbDEX protocol Different from existing DEXes
According to the whitepaper, the project known as tbDEX, is looking to create a decentralized financial system that is cheap, secure, and offers more inclusion for people globally, compared to the traditional financial system.
The document also noted that complexity involved with existing decentralized exchange services when trying to convert crypto to fiat, which deters newcomers in the crypto industry despite the growing popularity of bitcoin and other cryptocurrency assets. However, the tbDEX protocol seeks to create a framework that would eliminate the need for centralized exchange platforms for fiat-crypto conversion.
Furthermore, the project will not depend on a centralized entity for permission or accessibility to the network. Meanwhile, unlike other DEXs, the whitepaper stated that there would be no governance token.
An excerpt from the whitepaper reads:
“In its most abstract form, it is an extensible messaging protocol with the ability to form distributed trust relationships as a core design facet. The protocol itself has no opinion on what an optimal trust relationship between an individual wallet and a participating financial institution (PFI) should look like.”
The document also said:
“At its core, the tbDEX protocol facilitates the formation of networks of mutual trust between counterparties that are not centrally controlled; it allows participants to negotiate trust directly with each other (or rely on mutually trusted third-parties to vouch for counterparties), and price their exchanges to account for perceived risk and specific requirements.”
Another difference between existing DEXs and the tbDEX protocol, is the implementation of know-your-customer (KYC), with the level of information dependent on the user’s jurisdiction, in compliance with regulatory policies. Also, the protocol will employ blockchain analytics solution to monitor indicidual’s transactions and wallets in order to prevent money laundering and other illicit activities.
Twitter and Square CEO is a Major Bitcoin Supporter
Jack Dorsey, founder and CEO of Square, who also doubles as the CEO of microblogging platform Twitter, first announced the creation of an open developer platform called TBD back in July. According to Dorsey at the time, the aim is to make it “easy to create non-custodial, permissionless, and decentralized financial services”, with a focus on Bitcoin.
Later in August, Dorset said that the Square’s new division wants to build a Bitcoin decentralized exchange. Meanwhile, the whitepaper is welcoming feedbacks and ideas, with the community either tweeting at the new TBD account or sending their contributions on Github where the whitepaper is published.
The CEO of Twitter and Square has been a strong Bitcoin proponent over the years. Dorsey earlier mentioned that BTC is the currency of the internet, and later stating that Bitcoin and blockchain will be part of Twitter’s future
Meanwhile, Dorsey’s microblogging platform introduced a bitcoin tipping feature in September. Earlier in November, Twitter announced the creation of a new team called Twitter Crypto in a further push towards decentralization.