Jack Dorsey has announced that they are building an open platform to create a decentralized exchange for Bitcoin.
The project which he named ‘TBD54566975’ essentially seeks to make Bitcoin more decentralized by eliminating the need to exchange Bitcoin for fiat at centralized and custodial services such as CashApp and Coinbase.
On Friday evening, Mike Brock popularly known as Brockm, the lead architect in the development confirmed this move stating that they believed that Bitcoin will be the inherent currency of the internet in coming years and that they were solely focused on developing a sound monetary system that would be accessible to everyone despite there being projects aimed at making the internet more decentralized.
He also noted that currently, despite Bitcoin facing various challenges including high-cost on transactions and scalability which lighting was solving, there was still a subsisting challenge of finding a solution for infrastructural deficits between assets like stablecoins.
“This is the problem we’re going to solve: make it easy to fund a non-custodial wallet anywhere in the world through a platform to build on- and off-ramps into Bitcoin. You can think about this as a decentralised exchange for fiat,” he said.
Earlier mid-July, Jack Dorsey, had announced that Square was building a new business integrating the Seller Cash app and Tidal to come up with TBD. The move he said, was aimed at building an open developer platform with the sole goals of making it easy to create non-custodial, permissionless, and decentralized financial services.
Mike also disclosed that the team intended for the TBD model to be Bitcoin-native as well as an open-source project, where community members can directly contribute to its development through Github.
As we said, this platform will be entirely developed in public, open-source, open protocol, and any wallet will be able to use. No foundation or governance model that TBD controls. Permissionless or bust.
The team was also considering adopting the RSK blockchain model, among other chains as a bridge given its value addition and functionality to the Bitcoin ecosystem through enabling smart contracts, near-instant pays, and scalability. By supporting tokens that run on the RSK network, users can enable fast, highly scalable, and low-cost payments.
Currently, exchanges mainly allow for users to only convert cryptocurrencies stored in their platforms into fiat currencies for them to gain real user value given that the larger global population is yet to adopt cryptocurrencies, a challenge that Dorsey and his community seek to solve, starting at Square.