Diving into tbDEX with Mike Brock

Check out the episode page

Key Takeaways

  • Open-source technologies have changed the world and will continue to.
  • tbDEX’s guiding principle is to be as decentralized as possible.
  • There are inevitable tradeoffs to be made in order to bring the masses into the Bitcoin system.
  • Bitcoin is a hopeful technology that gives us a chance to fight against the asymmetric risks threatening the continuation of human freedom around the world.

Intro

  • Mike Brock, Product Lead at tbDEX aka @TBD54566975, is interviewed by @MartyBent and @Odell in this Tales From the Crypt (@TFTC21)
  • This conversation explores the need for tbDEX and how it will likely work. Read the full whitepaper here.

Definitions

  • DID – Decentralized Identities. – a new type of identifier that enables verifiable, decentralized identity
  • VC – Verifiable Credentials – provides a standard way to express credentials across the digital world in a way that is cryptographically secure, privacy-respecting, and machine verifiable (from whitepaper)
  • PFI- Participating Financial Institutions.

Block (formerly Square) and Bitcoin

  • During a hack week in Jan 2017, @Jack CEO of Block, asked Mike to integrate Bitcoin so he could buy coffee at Blue Bottle. A week later, they figured it out. This was Mike’s first experience with Bitcoin.
  • CashApp integrating Bitcoin faced criticism EVERYWHERE and was difficult to build. Brock gives a lot of praise to Jack for his conviction to get this done.

Why tbDex

  • tbDEX exists to provide a bridge between traditional, centralized finance and Bitcoin
  • Block and tbDEX is uniquely positioned with their existing infrastructure to work with the legacy system to bring bitcoin to everyone
  • They are intending to serve new people in Bitcoin. Not everybody will want to know through the years-long rabbit hole.
  • It will give power back to the people by giving them the option to choose which financial system they operate in.

How tbDex Works

  • tbDEX will be building upon the already-built web of trust among existing institutions.
  • By using DID and VC, users with existing KYC information by a trusted institution (PFI) will be able to transact with another party as long as they approve of each other’s credentials.
  • This will be a messaging protocol more like BitTorrent than blockchain. There will be no central registry and it will utilize the public key infrastructure and certificate authorities.
  • It will most likely utilize stable coins. Brock views them as positive and thinks it will be safer to transact with them.

Interesting Takes

  • Blockchains are slow and expensive databases and a bad solution for most things. Web 3 is like “people haven’t thought about it for more than 5 seconds”.
  • Brock sees tbDEX as a necessary step towards a decentralized world. Even after fiat ends, he sees the product as useful because of the established social trust the product utilizes.
  • Financial privacy and anonymity are different.
  • Bitcoin “Purists” or crypto-anarchists may not like this product, but they need to accept that our reality needs this product.
  • Natural Law was discussed throughout. Hume – can’t derive an ought statement from an is. There is a split in political philosophy till date.

CryptoTales from the Crypt : , , ,
Notes By Paul Keating

More Notes on these topics

Top Insights and Tactics From

31 Best Podcasts of All Time

FREE when you join over 35,000 subscribers to the
Podcast Notes newsletter

No Thanks