According to a tweet from Jack Dorsey on Friday, one of bitcoin’s most ardent supporters, TBD, his new company venture, is working to establish an open platform to create a decentralized bitcoin exchange. A decentralized exchange (DEX for short) is a cryptocurrency exchange that enables peer-to-peer transactions without intermediaries. DEX focuses on other blockchains, like Ethereum’s Uniswap and SushiSwap, and Binance Smart Chain’s PancakeSwap, which are well-established. TBD plans to build a fully permissionless and decentralized exchange based on Bitcoin, with various on-ramps for exchanging fiat currency for Bitcoin. Square has been working on making credit card payments easier for a few years. And, earlier this year, the company delved into cryptocurrency payments and even purchased $170 million worth of Bitcoin.
What is TBD?
TBD was first introduced by Dorsey in July, intending to serve as an open developer platform and a foundation for other DeFi services. Square’s General Manager of TBD, Mike Brock, also weighed in on the endeavor. According to him, there has been a lot of speculation about what TBD is and isn’t. Brock stated that his team believes bitcoin will become the internet’s native currency. However, he pointed out that trading bitcoin frequently entails exchanging money at a controlled and custodial facility. He cited CashApp, a Square-developed mobile payment service, and Coinbase, the largest bitcoin exchange in the United States, as examples. Brock highlighted that by providing a platform with on- and off-ramps into bitcoin, the initiative will make it easier to fund non-custodial wallets worldwide.
“You can think of this as a decentralized fiat money exchange,” Dorsey said. “We would love for this to be native to bitcoin, top to bottom.”
TBD intends to construct DEX as an open-source, open-protocol service that works with any wallet in a permissionless manner, Brock states. He also expressed that he sees the DEX as being intrinsic to Bitcoin and that it employs clever contracts, but that there are other areas where he believes there are gaps. Brock and Dorsey are contacting Bitcoin advocates to see if any existing projects can be solved using Bitcoin natively. Ethereum, another blockchain platform, fixes the difficulties that the native Bitcoin has, according to a person who replied to Brock’s thread. Dorsey has also dabbled in Non-Fungible Tokens (NFTs), which depend on the blockchain. He sold his first tweet for $2.9 million earlier this year.
Written by: Mishaal Muzaffar
Reporter: Imaaz Nadeem