Dorsey plans DeFi on Bitcoin, critics point to Ethereum

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Key takeaways Jack Dorsey has announced that Square will form a company to create an open platform for decentralized financial services, with a focus on Bitcoin. Many have pointed out that Dorsey’s idea has some similarities to the main smart contract blockchain, Ethereum. Dorsey is known for his keen interest in Bitcoin, but he’s not as supportive of Ethereum. Share this article

Dorsey wants to bring DeFi to Bitcoin, but a lot of people have said his idea is very similar to Ethereum.

Dorsey offers a DeFi platform

Jack Dorsey is planning a new Bitcoin-focused DeFi project.

The CEO of Twitter and Square announced the project on Twitter last night, confirming that Square would create “a new business” focused on building an open platform for “non-custodial, unlicensed and decentralized financial services.” He added that Bitcoin would be the “main focus”, before posting a link to a new Twitter account for the project under the name TBD.

He also explained that the project would be open source and would differ from the Square Crypto project funded by Square because it would receive direction from Square. He added that the initial team has “some ideas” on what will be built on the platform.

It is currently unclear to what extent the ‘business’ element of the company would be factored into the platform and whether it will be as decentralized as Bitcoin.

DeFi on Bitcoin has been discussed at length in the past, with many of the original blockchain’s top evangelists claiming that the network could potentially support a DeFi ecosystem. To date, no significant DeFi development has materialized on Bitcoin, although the evolution of the Lightning Network and the upcoming Taproot protocol update, which adds smart contract functionality, is expected to expand the possibilities of blockchain.

Still, many in the crypto community responded to Dorsey’s announcement by pointing out the similarities between his idea and the current center of decentralized finance, Ethereum. ChainLinkGod, a pseudonymous Twitter personality, wrote, “So you’re recreating Ethereum?”

So you are recreating Ethereum?

– ChainLinkGod.eth 2.0 (@ChainLinkGod) July 15, 2021

Crypto investor and influencer Lark Davis then tweeted “Or… you could just use #ethereum?” Mihailo Bjelic, co-founder of the Ethereum Polygon scaling solution, also responded by saying that Dorsey’s idea was “not possible” on Bitcoin and “already exists” on Ethereum and scaling solutions. to scale like Polygon. He also pointed out that Dorsey recently used Ethereum to sell his first tweet as NFT.

Many Bitcoin supporters also responded to the thread supporting Dorsey’s plans. Dorsey has become a popular figure in the Bitcoin community, known for her unwavering support for the leading cryptocurrency. He has invested millions of dollars to help the adoption of Bitcoin and has said he wants to make it “the currency of the internet”. However, like many Bitcoin fans, he is less enthusiastic about other blockchains like Ethereum. Speaking at Bitcoin 2021, he said that all coins other than Bitcoin “are not counted at all” for him.

Dorsey was also criticized for his Bitcoin-only stance when Twitter created a collection of Ethereum-based NFTs early last month. Dorsey was neutral in his views at the time: When a Twitter user suggested that the switch to NFT showed Dorsey would soon be buying ETH, he responded with a simple “No”.

Ethereum is currently considered the de facto home of DeFi and NFT. There is roughly $ 55 billion stuck in native Ethereum protocols like Aave, Uniswap, Curve Finance, and Maker today.

Disclosure: At the time of writing, the author of this feature owns ETH, ETH2X-FLI, and CRV. They were also exposed to UNI and MKR in a cryptocurrency index.

This news was brought to you by ANKR, our favorite DeFi partner.

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