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As NewsBTC informed, Square will develop a Bitcoin-only Decentralized Exchange. However, will they work in conjunction with Bisq, the “peer-to-peer trading network”? Jack Dorsey seemed to confirm that both organizations are going to start talking at the very least. Why does this matter? What makes Bisq special? Keep reading to find out.
Related Reading | Why Square Will Create New Bitcoin-Focused Company, According To CEO Jack Dorsey
The Tweets That Point To Bisq
— jack⚡️ (@jack) August 27, 2021
Bisq answered that tweet with which Dorsey announced that his company’s TBD project would be to “build an open platform to create a decentralized exchange for Bitcoin.” The Bisq people claimed that they’ve been building their product “to be the go-to peer-to-peer DEX for bitcoin power-users.”Then, they offered collaboration, “Our heads together could result in something better than any of us could imagine.”
Dorsey answered “Def!” and copied Mike Brock, leader of the TBD project.
That exchange doesn’t guarantee anything, sure. But the organizations will meet, and they seem to share a lot philosophically speaking. The Bitcoin community, for its part, reacted under Jack’s tweet with a lot of “This is the way,” exciting .gifs, and Bisq praise.
BTC price chart for 08/29/2021 on Coinbase | Source: BTC/USD on TradingView.com
Why Will Dorsey’s DEX Be Bitcoin-Only?
In NewsBTC’s announcement of Square’s Decentralized Exchange project, we quoted:
Jack Dorsey’s tweet quoted an extensive thread by Square executive Mike Brock, TBD project head, who outlined the potential development paths for the open-source DEX.
“We believe Bitcoin will be the native currency of the internet. While there are many projects that will help make the internet more decentralized, our focus is solely on a sound global monetary system for all. But including all requires a few pieces we think we are missing.” Brock said in one of his tweets.
This is in tune with ideas expressed by Dorsey himself.
The reason I have so much passion for #Bitcoin is largely because of the model it demonstrates: a foundational internet technology that is not controlled or influenced by any single individual or entity. This is what the internet wants to be, and over time, more of it will be.
— jack⚡️ (@jack) January 14, 2021
After all, Square created the Bitcoin-focused TBD “with the sole goal of making it easy to create non-custodial, permissionless, and decentralized financial services.”
Square is creating a new business (joining Seller, Cash App, & Tidal) focused on building an open developer platform with the sole goal of making it easy to create non-custodial, permissionless, and decentralized financial services. Our primary focus is #Bitcoin. Its name is TBD.
— jack⚡️ (@jack) July 15, 2021
Everything That Makes Bisq Special
A couple of years ago, Manfred Karrer, Bisq co-founder, spoke to CoinDesk.”The goal is to become as decentralized and censorship-resistant as bitcoin. That’s a very high goal and it took bitcoin a very long time to get there,” he said. On Bisq’s site, they claim that “Bisq is code, not a company.” And said software is “open-source and community-driven.” What else makes Bisq special? Well…
Related Reading | Running Bitcoin: Passing The Torch From Hal Finney To Jack Dorsey
First of all, “It’s software you run on your own hardware, which connects to other people running the Bisq software to facilitate trades.” Sort of like how torrents work.
Bisq does not hold Bitcoin or any national currency. All the deals are between “the trading peers themselves.” And Bisq only has minimal information about either of them. Also, “no data is stored on who trades with whom.”
And speaking about privacy. “All Bisq data is transferred over its own secure peer-to-peer network, which is built on top of the Tor network—no central servers.”
The service doesn’t require registration.
To grease the wheels, “Both traders are required to pay security deposits, which are refunded after trades are completed.”
Bisq doesn’t accept Paypal or credit cards because chargebacks are too easy.
Bisq eliminates “the need for trusted third party exchange services.”
The Bisq network “is fully peer-to-peer in that it requires no centrally-controlled servers and has no single points of failure.”
However, you should also know that someone hacked Bisq that one time, stealing $250K.
Featured Image by Jeremy Zero on Unsplash – Charts by TradingView