Jack Dorsey: Square to form a new division for Bitcoin-based DeFi

Jack Dorsey: Square to form a new division for Bitcoin-based DeFi

Jack Dorsey, the CEO of Twitter and Square, a US-based digital payment and financial services company, has reportedly announced through his Twitter handle that the company is forming a new division that will focus on developing Bitcoin-based decentralized financial services.

In his Twitter post, Dorsey has stated that Square's new division will develop an open developer platform with the express purpose of enabling easy to create, permission less, non-custodial, and decentralized financial services. Bitcoin is the firm's primary focus.

Dorsey has designated engineer Mike Brock as the new division head. Previously, in 2018, Brock had headed a team of developers that was working in integrating Bitcoin features into the Cash App. Brock has also worked on open source projects as part of Red Hat Inc., an enterprise open source solutions company.

A company of Square's stature striving to provide simple Bitcoin-based DeFi services could possibly boost adoption and give Ethereum-based DeFi a run for its money.

Presently, the Bitcoin network lacks smart contract capability, which is making it impossible to give a hard competition to Ethereum-based DeFi as well as its interoperable 'Money Legos’. Right now, decentralized finance on Bitcoin needs extra infrastructure like bridges and sidechains.

Ethereum leads the top 100 DeFi platforms in terms of locked value (TVL), according to Defi Llama statistics, with AAVE leading the list with $9.09 billion TVL. Binance also competes with services like Pancake Swap, which is ranked eighth and has $3.76 billion in TVL.

The Lightning Network, which holds the rank 103 on DeFi Llama and with a TVL of $58.7 million, is the highest-ranked Bitcoin-based project. However, TVL may not be the ideal metric for assessing the Lightning Network's usefulness.

Square's new division complements its other business lines, which include Square Seller, the Tidal streaming service, and Cash App, which Dorsey recently hinted might incorporate blockchain tech components like NFTs. and smart contracts.

Source credit: https://cointelegraph.com/news/defi-on-bitcoin-jack-dorsey-launches-new-square-division-to-make-it-easy