Jack Dorsey, co-founder and CEO of Square and Twitter, published a white paper Explained Square’s decentralized Bitcoin plan in detail on Friday (Bitcoin) Exchange tbDEX.Unlike most Decentralized exchangeOr DEX, tbDEX will not use a trustless model, so it will not have its own governance token. Rather, it is a messaging protocol designed to promote trust relationships without relying on federation to control access.
tbDEX also intends to include many features, making it far less decentralized than DEX in the true sense. First of all, the agreement requires all participants to go through the background Know Your Customer (KYC) check to comply with the relevant regulations of the user’s area.Users can only connect their wallets to the exchange and Exchange coins.
In addition, the white paper calls for the deployment of blockchain analysis solutions, whether built into DEX or through a third party, to track transactions on the platform. Such a blockchain forensics solution may be a controversial topic. Such a system may enable authorities to cross-reference payment IDs and public wallet addresses with KYC information to reveal the personal identity behind the transaction party.However, supporters claim that this Monitoring means It is necessary to prevent illegal activities.
But the centralized function of tbDEX can also win the support of crypto enthusiasts. A significant aspect discussed in the white paper is refunds, which do not exist on most DEXs.If implemented, Square’s ability to reverse transactions on tbDEX may prevent investors from incurring irreversible losses during decentralized finance Carpet pull. Square is currently encouraging feedback on the white paper on the newly created Twitter account.
We made a white paper. https://t.co/ffvYGjQQ7T
— To be determined (@TBD54566975) November 19, 2021