Jack Dorsey, founder of Twitter and CEO of Square Payment, says he plans to build a bitcoin-based platform for decentralized financial services (DeFi). However, some believe that this project is very similar to Ethereum and it is not possible to implement it in the Bitcoin network.
to the the report Crypto Briefing, CEO of Twitter and Square, tweeted last night that Square would start a new business focusing on building an open platform without the need for a license to operate decentralized financial services. He added that bitcoin will be the main focus of the platform, before linking to the project’s new Twitter account called TBD.
Dorsey also explained that the project is open source and will be different from the company-funded Square Crypto digital currency project, which Square is leading. He added that the initial team provided ideas on what would be built on the platform.
It is not clear at this time to what extent the business element of this investment plays a role in the platform and whether it is as decentralized as Bitcoin.
Also read: What is DeFi or Decentralized Finance?
In the past, the implementation of defy projects on the Bitcoin network has been widely discussed. Many of Bitcoin’s biggest fans say the network could practically support a defiance ecosystem. To date, no development has been completed in the field of Bitcoin network defense. However, the evolution of the Lightning network and the Taproot update, which adds smart contract capabilities to the Bitcoin network, expand the capabilities of this blockchain.
Many members of the digital currency community have now reacted to Dorsey’s announcement, citing similarities between Dorsey’s idea and Ethereum, the main source of decentralized finance.
A Twitter user titled “ChainLinkGod” wrote in this regard:
Do you want to recreate the Ethereum?
Lark Davis, a digital currency investor and influencer, also tweeted:
Can you use Ethereum instead?
Paligan co-founder Mihailo Bjelic has said that it is not possible to implement the Dorsey idea on the Bitcoin network, and that such a thing already exists in the Ethereum Blockchainchain and scalable solutions like Paligan. He also noted that Dorsey recently used Ethereum to sell his first tweet as an NFT.
Many Bitcoin fans also reacted to a series of tweets supporting the Dorsey scheme. Dorsey has become one of the most popular figures in the Bitcoin community and is known for his strong support for the market-leading digital currency. He has invested millions of dollars to help accept bitcoin and has said he wants to turn it into an “internet currency”. However, like many Bitcoin fans, he is less interested in blockchain, including Ethereum. Dorsey told the Bitcoin 2021 conference that he no longer cared about digital currencies.
Earlier last month, Dorsey was criticized for his stance in support of Bitcoin when Twitter launched a series of Ethereum-based tokens. His views at the time showed that he disagreed. When a Twitter user said that Dorsey’s move toward the proverbial tokens indicated that he would soon be buying Ethereum, Dorsey replied with a simple “no.”
Ethereum is now virtually the host of the decentralized finance industry and proxy tokens. About $ 55 billion is locked in Ethereum-based protocols such as Aave, Uniswap, Curve Finance and Maker.