Square to create new DeFi platform based on bitcoin

This was announced on Twitter by the company chief Jack Dorsey and this has been causing waves in the crypto industry ever since this announcement came in. Though too many details is not known about this project as yet, this is in addition to the hardware wallet that the company is looking to build in the coming months and these 2 projects are likely to be the focus of the company for the near future.

Jack has been a very strong proponent of Bitcoin and its associated technology and the move to develop a DeFi space around bitcoin has raised eyebrows in the crypto circles. For a long, Ethereum has been dominating this space with much of the dapp building and the technology being done by the developers on this blockchain. Bitcoin has been used purely for speculative purposes with very little interest from developers to develop anything on it of use.

So, the push to build a DeFi platform around Bitcoin is something of a surprise and it also comes with a question of why Bitcoin has been chosen to build such a platform when other options like Polygon, Solana, and others are available with technology that is tailor-made for such platforms.

Jack also announced that Mike Brock would be leading the business and he said,” Technology has always been a story of decentralization. From the printing press, to the internet to bitcoin – technology has the power to distribute power to the masses and unleash human potential for good, and I’m convinced this is the next step.”

It remains to be seen whether this will arise as a direct challenge to the existing blockchain ecosystems on which the DeFi apps work and whether there would be any interoperability between the existing blockchains and the new platform that is going to be built by Square. This is likely to be a key consideration for developers who would not wish to redevelop their dApps all over again for different blockchains and platforms.

For easy adaptability and uptake by the developers, there need to be ways for developers to switch between platforms in a smooth and easy manner and this cross-chain adaptability is something that Square should be considered in a serious manner if it wants to make serious inroads into the DeFi space.