The Twitter co-founder is betting heavily on cryptocurrencies. In parallel with a physical crypto wallet, his company Square is also working on a platform to create decentralized finance projects around bitcoin.
After Elon Musk, it is now Jack Dorsey who takes a passion for cryptocurrencies. The boss of Twitter announced Thursday, July 15, that his other company, Square, would develop a new department in the crypto field. This new unit, whose name remains to be determined, will create a platform to help developers create new “Decentralized financial services “.
Square wants to simplify the creation of services permissionless (where anyone can participate in the blockchain allow them to operate) and non-custodial (where the private keys that authorize transactions, and spend the funds associated with them, are not held by a third party). The concept of decentralized finance refers to financial services built around blockchain technology – which does not require going through entities such as banks to operate transactions.
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
Jack Dorsey starts with bitcoin
The boss of Twitter wants to focus initially on bitcoin. Despite the turbulent period it has known, it remains the cryptocurrency whose price is, by far, the highest. A bitcoin is currently worth over $ 31,000, while the second highest cryptocurrency, Ethereum, is trading at just under $ 1,900. Jack Dorsey didn’t give much more details on this upcoming offer, but Mike Brock, who will be in charge of the new unit, said on Twitter, that Square wanted to include the community as much as possible in the development of this new project, and that more details would be given in the coming weeks. Mike Brock believes that decentralized finance will play an important role in the future: “ Technology has always been a story of decentralization. From printing to the internet to bitcoin, technology has the power to distribute power to as many people as possible. “
Jack Dorsey has increased announcements in the crypto field in recent months. He notably revealed on July 9 that Square was going to develop a physical crypto wallet. “Crypto wallets” are the methods of storing cryptocurrencies. They can take the form of an application, software or online services (web wallet). Jack Dorsey believes, however, that the hardware wallet – which as its name suggests, is a physical storage tool – is a more suitable solution. Physical wallets have the advantage of reducing the risk of having their private keys stolen by a hacker (even if they may, despite everything, also be the target of an attack). They also offer their users a storage option that does not require handing over their private keys to a trusted third party.