Jack Dorsey’s TBD Introduces White Paper for Decentralized Bitcoin Exchange

The first product of Bitcoin-centric TBD will be tbDEX. A decentralized exchange that they consider “a liquidity protocol” in a recently published white paper. The Bitcoin network is unauthorized, and anyone with an Internet connection can access it at any time. However, that is not the Fiat world we live in. There are endless requirements for participation in the banking system and they keep a high percentage of the population bankless and vulnerable. “We believe that the economy should be included. We need to create an on-ramp for the future where everyone can access and participate in the economy, “says TBD Inn. Post that tbDEX announcement.

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A subsidiary of Jack Dorsey’s Square, They have created TBD “With the sole purpose of making it easier for Bitcoin to create non-custodial, unauthorized, and decentralized financial services”. And now, they have a plan.

What is the price offer of TBD?

tbDEX’s goal is to “build a bridge between the world of fiat and cryptocurrency,” which is pretty clear. We still live in a Fiat world and, if Bitcoin is going to be successful, we need new, easy and cheap ways to communicate with the world in question. “There are serious challenges to implementing this vision. Fiat rails are regulated, and no interface with the traditional financial system or the “real world” can be completely unreliable. ”

So, what solution does TBD offer? tbDEX will allow participants to communicate and transact with each other Like Bisque And similar projects. However, TBD will allow users to “rely on mutually and voluntarily trusted third parties on behalf of the counterparty.” Inside The white paper itself, TBD assumes that participating financial institutions or PFIs will be part of the network.

“PFIs can be fintech companies, regional banks, large institutional banks, or other financial institutions, but not limited to; PFI has access to the Fiat payment system and has the ability to facilitate Fiat payments in exchange for tokenized cryptocurrency assets or vice versa. “

TbDEX will provide financial institutions with tools for the KYC and AML approach:

“The protocol will also carry the necessary regulatory-clearing information for PFIs so that they can conduct their AML and KYC checks before providing liquidity to the wallet owner. However, the information required may vary depending on the jurisdiction. “

Wait a minute … a decentralized exchange that requires KYC? What will be the point? OK, the KYC method is not required for the protocol, but there may be some organizations. The good news is, participants don’t have to deal with those organizations if they don’t want to. They can only communicate with each other and trust each other in other ways.

BTC price chart for 11/20/2021 on FX | Source: BTC/USD on

Anonymous costs

Where it is interesting. According to the white paper:

“The tbDEX protocol provides a framework for establishing social trust, facilitating decentralized networks of exchange between assets using decentralized identity (DID) and verifiable credentials (VCs) to establish proof of identity in the real world.”

It is important to note that “the protocol itself does not collect or record any personally identifiable information.” However, if a participant does not wish to be named, it is his responsibility to optimize for it. Again, the white paper:

“Our goal is not to maintain anonymity of transactions at all costs. Nor is it to undermine a person’s ability to optimize for anonymity. Nothing in principle prevents anonymous transactions on the tbDEX network for financial privacy. A PFI may, in principle, require a VC, but such a transaction would represent a high level of risk for the adversary. ”

To assume that risk is cost money. It’s as simple as that. The announcement puts the post nicely.

“Transaction costs are ultimately driven by risk. In most anonymous cases, the transaction costs will inevitably be higher; In most disclosures, they should be low. This method of price discovery allows the market to find the right balance. ”

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If you have any suggestions, send them to TBD

The white paper is a rough outline of what tbDEX will eventually be.

“This preliminary draft of the White Paper is intended to establish a conceptual understanding of the high-level design of the proposed tbDEX protocol. It should not be considered as complete or final. It presents a proposed design for public comment. “

Contact us if you have any suggestions TBD via Twitter Or send them A pull request on GitHub.

Featured Image: tbDEX diagram from the whitepaper | Charts by TradingView

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