The rebranding to become Block Inc. served as an effort to prioritize its focus on the development of crypto and blockchain solutions.
The main idea is to convert Square into a blockchain-based platform where transactions are processed on blockchain networks.
Dorsey’s move from Square Inc. to Block Inc. as a sole digital payment corporation to a broader service provider.
Block Inc. encourages crypto innovation and believes that its adoption will make a radical change in future payment solutions.
On December 10, 2021, Jack Dorsey former co-founder and CEO of Twitter announced the rebranding of his payments company “Square” to Block Inc. The news came a few months after Facebook CEO, Mark Zuckerberg renamed his company “Meta”. Dorsey claimed that the rebranding will help to establish a different identity for its payments business.
The former Twitter CEO further added that segregation was important to differentiate its financial services from the corporate business. On Monday, Dorsey stepped down from his role as the CEO of Twitter. The CEO was always fascinated with cryptocurrency and blockchain technology. In his new role, he wants to focus on the development of the payments solution “Square” and incorporate new technologies like blockchain.
Square was founded in 2009 by Jack Dorsey and co-founder Jim McKelvey. Together they launched a financial service with a mobile payment solution. It is an omnichannel solution with an easy interface that allows buyers and sellers to interact, transact, track transactions and inventory, and finance businesses.
In 2013, it unveiled CashApp, a free mobile application that helps buyers and sellers to send and receive money via smartphones. Users can log into the “Square” dashboard and access “Square Reader”.
Square Reader is a small tool that can be installed on a tablet or smartphone. It reads debit and credit cards for payments. Another helpful tool is the “Square Appointments”. It is an online tool to make appointments through the app.
Some other avenues of Square are “TBD54566975”, a blockchain-based platform. TIDAL is a music-streaming service provider. The company has also acquired the Australian Fintech payment platform “Afterpay” which offers installment payments to users.
The rebranding of Square to Block Inc. was to distinguish the corporate entity from its business. The different divisions of Square like TIDAL, CashApp, TBD54566975 will continue to function as before under their respective brand names. There will be no organizational change. Even the company’s ticker symbol “SQ” will remain the same.
Prioritizing crypto and blockchain - From Square to Block
The main idea is to convert Square into a blockchain-based platform where transactions are processed on blockchain networks. Block refers to its various divisions as “building blocks”. This aimed to bring communities and businesses together in the blockchain ecosystem. Its cryptocurrency division is renamed as “Spiral”. Dorsey believes that Block will bring together artists, fans, sellers, creators, developers, individuals, and businesses in one common platform.
He has always been vocal about Bitcoins. Even his Twitter profile description has a #Bitcoin hashtag. As an avid cryptocurrency advocate, he believes Bitcoin will emerge as a global currency in the future, bringing new opportunities and enhancing customer experiences in the blockchain network.
Square already has a huge customer database. Last year, they processed about $112 billion in payment transactions. The company’s revenue has grown exponentially over the past few years. Earlier, he also announced that his company Square is going to build an open-source hardware wallet for Bitcoin.
Dorsey’s move from Square Inc. to Block Inc. as a sole digital payment corporation to a broader service provider is quite evident that he wants to popularize cryptocurrencies and blockchain technology to allow consumers to leverage its numerous benefits. The company also envisions building a decentralized crypto exchange and bitcoin-mining system in the future.
Encouraging crypto innovation
Block Inc. wants to develop an open-source DeFi platform that is permissionless and non-custodial. The blockchain-based platform will create a peer-to-peer marketplace for traders and users. Block will emerge as a decentralized financial service where customers have full control and custody of their assets.