Square is making a decentralized finance platform based on bitcoin called ‘TBD’
Square Inc., a digital payments company, has announced plans for launching a decentralized open-source financial services project that is bitcoin-focused. It will be called ‘TBD.
Square’s Chief Executive Jack Dorsey took the opportunity to tweet late on Thursday to explain his plans. According to him, the company will be “focused on building an open platform for developers with the sole purpose of making it simple to create non-custodial permissionless and decentralized financial services.”
Decentralized finance, also known as DeFi applications, is a service that doesn’t depend on banks or other centralized services. Instead, it uses software smart contracts that are based on blockchain technology to perform transactions between buyers/sellers.
Square lets users pay each other with money transfers via its mobile app. It also offers merchants a point of sale platform. In January 2018, Square began offering bitcoin trading on its platform. It integrates with Cash App’s investment app, and its payment app.
Dorsey recently approved the creation of a bitcoin wallet for merchants to improve security. This would allow them to store cryptocurrency more securely at the point-of-sale.
In a follow-up tweet, Dorsey stated that ‘Like the new Bitcoin hardware wallet we’re going to complete this completely open’. Open source, open development, and an open roadmap. Mike Brock is the leader and builder of this team. We have some ideas about the initial platform primitives that we want to create.
Mike Brock, Square’s leader in strategic development, will be leading the TBD team. Brock tweeted, “On a personal note I just want to mention that I’m super excited to be back in the open-source world.” “I was a Red Hat employee and I am excited to show the world that open-source software can be used to build great businesses.
Dorsey said that Square has an existing division, Square crypto, dedicated to general cryptocurrency and related projects. However, this is different from TBD. Square Crypto doesn’t receive any direction from Dorsey. It only gets funding. This funding is used to fund grants and projects. TBD will continue to be open-source and focused on the creation of a platform for DeFi businesses.
Dorsey stated that he would create a GitHub account and a Twitter account for the new company and has already started the Twitter accounts.