Jack Dorsey's decentralized Bitcoin exchange published whitepaper
It's no decentralized exchange in the most accurate sense of the word, but a peer-to-peer token swap platform under the oversight of Square.
Jack Dorsey, co-founder, and CEO of both Square and Twitter published a white paper Friday detailing plans for Square's decentralized Bitcoin(BTC) exchange tbDEX. Unlike most decentralized exchanges or tbDEX, DEXs will not utilize an untrustworthy model and hence will not feature their own governance token. instead, it is a message protocol designed to facilitate trust relationships without depending on a federation to control access.
The tbDEX likewise aims to introduce various features that make it far less decentralized than a DEX in the truest sense of the world. For starters, the protocol requires that all participants pass background know-your-customer. or KYC, checks to comply with relevant guidelines depending on a user's region. Users can only then connect their wallets to the swap coins and exchange with one another.
Additionally, the white paper called for every deployment of blockchain analytic solutions, either built-in to the DEX or through a third party, to track transactions on the platform. Such a class of blockchain forensic solutions is potentially a controversial topic. Such a system would almost enable authorities to cross-reference payment IDs and public wallet addresses including KYC data to unveil personal identities behind transacting parties. However, supporters claim that such means of monitoring are necessary to prevent illicit activities.
But centralized features of the tbDEX could likewise win support from crypto lovers. One distinguishing aspect discussed in the white paper is one of the chargebacks, which doesn't exist on most DEXs. if implemented, the ability for a square to reverse during decentralized finance rug pulls. Square is currently inspiring feedback on the white paper on a newly created Twitter account.