Jack Dorsey led Square released a White paper outlining the ambitious intention to build a decentralized Bitcoin [BTC] exchange protocol dubbed tbDEX. In contrast to other exchanges, the proposed decentralized protocol will not have its own governance token but will facilitate users to establish relations directly without the influence of any federation. Besides, there are plans to add more features that would further enhance it to become more decentralized in nature such as implementing know-your-customer [KYC] checks to users and similar region-specific regulations.
In addition to that, the white paper proposed to build blockchain analytic tools designed to monitor transactions on the platform. Such forensic solutions might bring their own set of controversies while revealing users’ identities and wallet addresses by authorities. However, advocates are of the opinion that such measures would be essential to prevent criminal and other illicit activities.
Another unique feature that caught the attention of many crypto enthusiasts was the discussion of chargebacks which are unavailable in most decentralized exchanges. For starters, chargebacks are payment amount that is returned back to a debit/credit card after a user successfully disputes a transaction or in other cases simply returns a purchased item. In the case of successful implementation on the tbDEX platform, the above process could potentially prevent irrecoverable damages endured by investors especially during decentralized finance [DeFi] rug pulls.
Square’s tbDEX key takeaways
Interestingly the white paper was debuted by Square‘s bitcoin-focused business unit called TBD that was created four months ago, this year. Delving further, the newly proposed exchange is a bid to reduce the gap between the fiat and crypto industries. In this way, the paper noted that it would ‘makes crypto assets and decentralized financial services more accessible to everyone ‘. As of now, Square is encouraging feedback on the white paper from the broader community on TBD’s newly created Twitter account. The authors further noted that,
This initial draft of the whitepaper is meant to establish a conceptual understanding of the high-level design of the proposed tbDEX protocol. It should not be considered complete or final. It represents a proposed design for public comment, Future revisions of the whitepaper will address incomplete elements and currently unforeseen issues or challenges.