Industry News CEO of Twitter is looking to Create a Decentralized Bitcoin Exchange

CEO of Twitter is looking to Create a Decentralized Bitcoin Exchange

August 31, 2021

Jack Dorsey, the CEO of Twitter and Square, recently made new ripples in the cryptocurrency industry. The man, known for his technological outlook on almost all facets of modern life and business, is a familiar face in the cryptocurrency domain. Now, however, his supporters who are also fond of crypto tokens must be delighted by his most recent decision to start work on a big cryptocurrency project. These are not exactly breaking news, being that Dorsey announced his plans for a new platform used for cryptocurrency exchange, but in a completely decentralized manner, back in July of this year. 

These are plans that are tightly connected to the Square and its operational capacity, but they are also opening up a new design inside of the company. Now, that project is entering a higher gear and slowly fleshing itself out, which will continue in the coming months. The implications of this news are clearly mildly bullish for the wider crypto market, but also hold even bigger importance for the long run. For years, there has been little movement in the field of global cryptocurrency exchange platforms, so a big Square development, which already has a strong brand, would be more than useful for the bitcoin ecosystem, but the whole crypto field as well.

Open Platform

Dorsey shared an update on his plans through a, expectedly, tweet. He said that TBD, the division of Square that is working on this project, is planning to use an open developer platform. From it, the same decentralized digital currency exchange should slowly rise up. In the same tweet, he also called on everyone interested to help TBD to build the same platform and thus offer the so far very elusive decentralized exchange. 

For many in the developer community that works on blockchain products, this notion of having an open platform and an open development process might be crucial when deciding if they want to come on board. At the same time, the ability of the project to attract the best talent will be one of the essential factors that will set the course of the platform. Without them, the same project can remain in the stadium of wishful thinking and undefined preparations for months, if not years. It is clear that Dorsey expects a lot more movement on that process and that this should take place as soon as possible. 

TBD Team

Some of the participants of the TBD core team are already known. That includes Mike Brock who is currently leading the same initiative. He also tweeted along with Dorsey, saying that his team has a clear mission and is looking to solve a crucial problem. That problem is how to easily fund a wallet that is in a non-custodial system from any location in the world. To do this, they will build a platform that has off-ramps and on-ramps into the bitcoin network. The same should eventually transform it into a decentralized digital currency system that can turn crypto into fiat and vice versa. For a lot of users, that option would be the holy grail of decentralized services in the cryptocurrency domain, especially if they are more interested in having options that keep them away from big systems. 

Bitcoin-Native Setup

Brock explained that the team would love to see the entire platform become a bitcoin-native setup. In times when esports are growing faster than regular athletic competitions, it is no wonder that many development teams are ready and willing to go all-in on a particular setup, even if a more shotgun approach might seem more inclusive in terms of both users and investors. For the TBD team and their vision, however, the setup remains one that is exclusively focusing on bitcoin and its BTC token. Besides, the platform would also be one that is created and developed in the public eye, using open-source but also open protocol backend systems. 

That is why any existing digital wallets would be able to use it easily. However, there are numerous challenges that will have to be resolved for this to actually provide the end-user accessibility and functionality that the team is looking to achieve. If they are successful, they will bridge gaps like those in scalability and cost which are currently plaguing existing digital currency exchanges.  

Big Promises

Even though a month barely passed between the moment Jack Dorsey announced the launch of this new business and the moment the first actual information regarding the service came out, many are skeptical about the pace of development and the future course of the platform. Decentralized finance is definitely the future of cryptocurrencies and this chapter is unraveling on a massive, global scale. However, it is not like no one prior to this got the idea of creating a decentralized exchange for cryptocurrencies, especially bitcoin. So, there will be a lot of work for the TBD team, as well as issues that their developers will need to overcome for the first time successfully if the platform is to take off. There is no doubt that Jack Dorsey understands all of this, but following a page from a guidebook of people like Elon Musk, he is placing the groundwork of public awareness for the possibility of the project becoming functional and operational sooner than expected. 

In that case, any humdrum about it would pay off quickly in finding investors and users. On the other hand, any issue with the development and postponement of deadlines – none of which have been currently set – is something that is borderline expected these days from most massive cryptocurrency development projects. Finally, the possibly biggest obstacle remains in the form of regulation and legal issues. A decentralized exchange will still – presumably – be a part of the Square company. Thus, it will be under the jurisdiction of the US authorities and regulators. There is still no clear information on how such a business functions in the domain of the present regulatory framework or when it comes to the always-essential taxation. But, Dorsey seems adamant about the whole setup and will work to see it come to fruition. That alone makes the entire setup more than possible as a finished product that would appear on the market in the coming years.

Source: Coindesk