The white paper of the decentralized Bitcoin exchange devised by Jack Dorsey was published this Friday

Jack Dorsey, co-founder and CEO of Square and Twitter, posted on Friday a white paper detailing the plans for the decentralized Bitcoin exchange (BTC) de Square, tbDEX. Unlike most decentralized exchanges, or DEX, tbDEX will not use a trustless model, and therefore will not have its own governance token. Rather, it is a message protocol designed to facilitate trust relationships without relying on a federation to control access.

tbDEX also intends to include many features that make it much less decentralized than one of the DEX that already exist on the market. To get started, The protocol requires all participants to go through a Know Your Customer, or KYC, process to comply with relevant regulations depending on the user’s region. Once the KYC is approved is when users can connect their wallets to the exchange and exchange tokens with each other.

Besides, andThe document called for the deployment of blockchain analytical solutions, either incorporated into the DEX or through a third party, to track transactions on the platform. This class of forensic blockchain solutions is a potentially controversial topic. Such a system would likely allow authorities to cross-check payment IDs and public wallet addresses with KYC information to reveal the personal identities behind the transaction parties. However, his supporters claim that these means of control they are necessary to prevent illegal activities.

But the centralized features of tbDEX could also win the support of crypto enthusiasts. One distinctive aspect discussed in the white paper is that of chargebacks, which does not exist in most current DEXs. If implemented, Square’s ability to reverse transactions on tbDEX could potentially halt the irreversible losses suffered by investors in the type scams. rug pull decentralized finance. Square is currently open to comments on the white paper on a newly created Twitter account.

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The white paper of the decentralized Bitcoin exchange devised by Jack Dorsey was published this Friday