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Jack Dorsey’s Bitcoin DEX Project Presents White Paper

Jack Dorsey, CEO of Twitter, and big Bitcoin supporter confirmed that his Bitcoin-based DeFi plans for his decentralized Bitcoin exchange project TBD is making progress by releasing the white paper.

The white paper presents how the upcoming tbDEX would create the connection between Bitcoin and fiat. tbDEX plans to present people with a direct method of converting fiat into Bitcoin without having to use several platforms. There already are plenty of platforms that claim to be able to do such a thing, but they come with several complexities that often may turn off possible customers. But tbDEX wants to create the first trustless platform.

“We propose a solution that does not rely on a federation to control permission or access to the network; nor does it dictate the level of trust required between counterparties. There is no governance token. Instead, the tbDEX protocol allows participants to negotiate trust directly with each other — or mutually and voluntarily rely on trusted third parties to vouch for the counterparty.”

The transition fee on the platform would be decided by the free market and users could be anonymous or present certain aspects. It is possible that anonymous fees would be higher than those that present some personal info.

When Dorsey first presents the plans of creating a DEX platform based on Bitcoin, plenty of Ethereum supporters came out to say that it won’t be able to succeed based on the fact that Ethereum based DeFi is already huge and for the Bitcoin network to have the possibility of supporting DeFi, it first needs to integrate smart contract functionality.

But Dorsey doesn’t agree as he thinks that the open and decentralized architecture of Bitcoin makes it ideal for DEXs also.

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