Payment company Square, which is working on a “decentralized exchange for bitcoin”, has released a white paper on the protocol that could form the basis of this project.
The document describes the protocol as “a protocol for detecting liquidity and exchanging assets (such as bitcoin, fiat money, or real goods).” It is dubbed tbDEX and is supposed to “leverage decentralized networks to exchange assets, providing a framework for social trust using decentralized identifiers (DIDs) and verifiable credentials (VCs).”
One of the main goals of the new protocol is to create “bridges” between the cryptocurrency ecosystem and fiat money without the use of centralized intermediaries and brokers. The White Paper notes that it is quite possible to use stablecoins for this.
“This will make cryptocurrencies and decentralized financial services more accessible to everyone,” the authors of the document say.
So far, this is only a prototype of the White Paper and the authors hope that its publication will attract the attention of the community, and it will provide feedback. In the future, it is planned to finalize the document, “add the missing elements and solve the unidentified problems.”
As a reminder, Square CEO Jack Dorsey announced work on a decentralized exchange for trading bitcoins back in August this year. The company is also working to create a hardware wallet for storing bitcoins.
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