Recently Jack Dorsey, the CEO of Twitter and Square, has shown interest to build a decentralised exchange (DEX) for Bitcoin. In fact, reports suggest that Square is already working on the idea. The exchange will be open-source and allow users to convert their fiat to crypto and send it to their wallets. TBD will continue the development, a new Bitcoin division in Square that opened last month. This will be a great thing as Bitcoin; a decentralized currency, will benefit a lot from a DEX.
We’ve determined @TDB54566975’s direction: help us build an open platform to create a decentralized exchange for #Bitcoin https://t.co/jHYWHy1qmu
— jack (@jack) August 27, 2021
The idea of a DEX for BTC
Jack Dorsey seems to be doing everything possible to make Bitcoin adoption easier. Even though their company’s cash app is a great way to buy and sell BTC, the company is bringing in a competition to that in the form of a DEX. And since this will be an open-source application where anyone can contribute, it might not generate any profits for the company.
It won’t be easy for the company just to build a superb DEX. This is because the benchmark is high, and there are already many platforms that are popular among the masses. This includes Pancakeswap, Uniswap, Sushiswap and also the famous Binance smart chain. All these are popular among power users, and they haven’t disappointed users during tough times. When the markets crashed or when there has been heavy traffic that buying or selling in a centralised exchange becomes difficult, these DEX’s have come to the rescue.
What will make this project special?
Till now, no decentralised exchanges allowed users to convert fiat to crypto as they didn’t have any verification requirements. But with this new DEX that Square plans to build, fiat to crypto transactions will be possible. The app will also solve the problem of global implementation that generally exists with a centralised platform like Coinbase or Square’s cash app. So, anyone around the world could use their platform to fund the Square cash app. Do note that this project will be mainly for BTC as Jack believes that all other cryptocurrencies are of no use.
What are your thoughts on the reports that Square will make a decentralised exchange for Bitcoin? And do you think this will change things up for the currency? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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