The Square Inc. is a crypto financing project co-founded by Jack Dorsey and Jim McKelvey. The company has currently decided to make its secret TBD project visible to the public. A TBD platform is a protocol that allows the developers to create open-sourced financial applications on the Bitcoin blockchain network.
Square Inc. has also published an 18 paged whitepaper to explain the inner workings of the project in question. The whitepaper claims that this new project is going to work as a tool for creating new liquidity channels for all sorts of online trading assets like fiat, cryptocurrencies, and other goods. However, the unique feature of this new project is that it focuses on finding the exchange solution considering the uncertainty of risk related to asset management.
Square’s Decentralized Exchange
According to the new whitepaper, the new Square Inc. project has been dubbed the tbDEX protocol. The working of this decentralized exchange is unique as it poses to discover and establish the social trust framework into the DeFi space. The basis for creating trust-based trading will be technologies like decentralized Identity (DID) and verifiable credentials (VC).
Both of these protocols will allow the users to ascertain the origins of the transaction validators without incriminating the personal information of the concerned parties. According to the paper, the new approach is going to allow more users to conduct online transactions and exchanges without facing any sort of discrimination and promotion of the most authentic sources based on their past performance.
The main objective of the decentralized exchange is to protect the privacy of the users and operate without having to depend on any centralized platform. However, there is always the issue of end-users acting in a bad manner. The problem has been noted by the authors of the tbDEX whitepaper. As per the contents of the whitepaper, establishing a trust-based network without having to depend on any centralized financial institution is a big challenge.
However, the new approach used by the tbDEX is trying to address the issue innovatively. The first part of the whitepaper discusses in detail the basic concept behind the idea. However, the author has not refrained from claiming that it should not be considered a final or finished product. The tbDEX developers want the project to be recognized as a pilot run for the time being that will keep improving over time.