Payments company Square is building a business committed to decentralized financial services using bitcoin, according to a report released by CNBC on Friday.
- Square CEO and Bitcoin bull Jack Dorsey announced on Twitter on Thursday that the company will build an open developer site making it easy to launch non-custodial and decentralized financial services.
- The new business unit will include the Seller, Cash App, and recently purchased Tidal business operations.
- Decentralized finance applications are apps, which do not depend on centralized authorities such as banks, but use blockchain-backed smart contracts to execute transactions.
- DeFi applications enable financial transactions, which are easily accessible, efficient, and relatively low transaction costs.
- Needham’s John Tadaro stated that DeFi platforms work similarly to conventional banks and financial services companies and could create disruption risks in the coming years.
The current estimated value of funds invested in DeFi-related contracts is $55.21 billion. The technology of decentralization will unleash human potential.
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