Has space publish a white paper outlining the plans for a new decentralized exchange called tbDEX.
The main goal of tbDEX will be to provide an easier way to convert between fiat and crypto.
“The tbDEX protocol aims to create universal and accessible entrances and exits that enable the average individual to benefit from crypto-innovations,” states the project’s website.
The exchange will not remain anonymous, as fiat currencies are processed in addition to Bitcoin and other cryptocurrencies. The nature of fiat regulation makes it impossible for tbDEX partners to process US dollars and similar assets anonymously.
Instead, tbDEX enables the parties to negotiate the amount of identifying information required to complete a transaction. While the centralized exchange may only accept certain IDs, tbDEX partners can accept various decentralized IDs and verifiable credentials.
While the team is aware that this model could be viewed as an attempt to “de-anonymize or void transactions,” they believe this approach offers resistance to fraud, censorship, unauthorized access, and competitive liquidity.
Square’s approach is very different from what is used on most decentralized exchanges, which usually only deal with cryptocurrencies and therefore allow users to remain completely anonymous.
However, tbDEX seems to have similar goals as projects that have tried to provide decentralized entrances and exits, such as Stellars Interledger and Anchor.
Bisq, a DEX that handles fiat support through a network of escrow providers, offers another point of comparison.
Jack Dorsey, CEO of Square, originally announced plans for the decentralized exchange in August.
Square already allows users to buy, sell, and spend Bitcoin through its Cash app. However, these transactions will be handled by Square itself, not the upcoming decentralized exchange.
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According to crypto briefing