In addition to Twitter, Jack Dorsey founded the digital payments company Square, which opened a branch specializing in crypto-assets (Square Crypto) in 2019. Since then, the executive has repeatedly proven his support for Bitcoin, and now even explains that he will contribute to the development of decentralized finance (DeFi) on the king of cryptos, via a new project.
Twitter CEO to fund Bitcoin’s development
The announcements follow one another on the side of Jack Dorsey and his companies in the field of cryptocurrencies and especially Bitcoin (BTC).
A week ago, the CEO of Twitter announced the confirmation of Square’s Bitcoin hardware wallet project, which will compete with Ledger and Trezor in their field.
This July 15, Jack Dorsey announced that he will create a new division of research and development, which will be entirely dedicated to the creation of decentralized financial services (DeFi), but mainly on the BTC network.
“Square is creating a new company (…) focused on building an open platform for developers with the sole purpose of facilitating the creation of decentralized, non-custodial financial services. Our primary focus is Bitcoin. (…) As our new Bitcoin hardware wallet, we’re going to do it in a completely open way. An open roadmap, open development and open source. (…) “Tweet from Jck Dorsey announcing linking DeFi and Bitcoin
Will DeFi on Bitcoin succeed in this saturated market?
Engineer Mike Brock will be in charge of leading this new development team. He previously worked on the Bitcoin integration with the Cash App in 2018.
Given the resources that will be put on this project, DeFi on Bitcoin could rather quickly add another competitor to decentralized finance on Ethereum (ETH), which is already competing well with other blockchain projects like Binance Smart Chain (BSC) or Polygon (MATIC) among others.
Developing smart contracts that work with the BTC network will not be an easy task, however, and the question of scalability is also likely to arise, given the high transaction intensity required by DeFi protocols.
Jack Dorsey and Square’s project is very ambitious, but the aura of Bitcoin, the king of cryptos, could be an undeniable plus to give an additional guarantee of security to a decentralized finance ecosystem. Either way, the competition is going to be tough, place your bets, and may the best DeFi win!