Tectum SoftNote has been described as the ultimate Bitcoin/Crypto Layer 2 scaling solution for decentralized payments. It sounds like another catchy marketing slogan but let's take a deeper look at what makes this important.

Bitcoin Scaling

In order to scale the Bitcoin network, L2 or Layer 2 solutions were introduced.  The most popular and well known is the Lightning Network (LN), which is an off-chain computation layer that is settled back on-chain .

Transactions are processed by the Lightning Network to release the load from the Bitcoin main network. The Bitcoin transaction velocity is only between 3 to 7 transactions per second.

Layer 2 provides faster transaction velocity or speed in processing the transactions. The settlement reaches finality back on the main blockchain, where they are transparent and immutable.

Another scaling solution is offered by L1 or Layer 1 networks. Unlike Layer 2, a Layer 1 network has its own consensus mechanism and also acts as a base layer.

While a Layer 1 is different from Layer 2, it can function as a Layer 2 to another Layer 1. That means it can be used as a Layer 2 solution as well.

These layers function to scale the network by providing speed that can handle more transactions than the Bitcoin main network. This allows the network to handle a larger volume of transactions at a lower cost.

The Tectum Blockchain

Tectum is a fourth generation Layer 1 smart contract blockchain that uses a Proof-of-Utility consensus mechanism. This gives the Tectum blockchain a transaction velocity of over 1 million transactions per second (1 Million TPS).

This provides a platform as the foundation base layer for an ecosystem of Bitcoin nodes that integrate smart contracts. This gives the network an integral connection to the security of the Bitcoin network while utilizing the power of smart contracts. 

The network consists of computers called nodes. Master Nodes reads and collect transactions on the blockchain and passes it to an Elect Node. The Elect Nodes, which are selected by the network, create a Network Map which provides the latest information about the blockchain. Both nodes are incentivized for their participation.

The blockchain uses Consensus-As-Service which is a mode operation that allows the blockchain nodes to participate in public or private networks. Master Nodes exchange messages with Elect Nodes to update the network regarding consensus during the Network Cycle.

The architecture makes use of a public network which runs Proof-of-Utility. It is a more efficient protocol than other blockchains because it does not require expending enormous power to achieve consensus.

Its purpose is to reach a faster finality of the public ledger using small fixed-sized blocks (120 bytes) that are processed quicker than larger sized blocks.  The data  stored is then optimized by the HashDrive protocol for faster retrieval of data.

It can also be used as a private network that deploys smart contracts to specific nodes (Elect Nodes) that execute transaction processing functions. This adds a layer of interoperability for closed systems, that provides utility to help scale the network.

Tectum issues its own token called TET (Tectum Token). This token is used across the Tectum ecosystem to pay for products and services that are developed on top of the platform. TET can also be used to mint SoftNotes, which is a service used for the payment system on Tectum.

SoftNote Main Features

SoftNote is a Tectum service that provides a trustless and decentralized transactionless payment solution on Tectum's blockchain. Let's break it down to get a better understanding.

As a blockchain, it is trustless, which means that there is no need to have an intermediary to facilitate the transaction. In traditional finance, this would be the role of a bank or payment processor. These would be considered trusted third-parties to a transaction, and as such they have full control of whether to allow or reject a transaction. A trustless system is censorship resistant, so transactions cannot be blocked or prevented by design.

Decentralization is what enables any user to participate on the network, allowing any two parties to transact directly in a peer-to-peer manner without the need for permission from a central authority. Anyone who has the software can transact directly with other users, without the need for a network server.

A key feature called transactionless payments is a non-traditional method. On conventional payment systems, transactions have fees that are charged to users who make payments. SoftNote provides lower costs that are free to the end user while only charging the merchant a fraction of the cost. This is ideal for micro-payments used in international transactions.

Payment Solutions For Business

The use of SoftNote addresses the problems with fiat and even crypto payments. It is important to implement solution to payment systems for the benefit of users.

Fiat transactions for international payments can take hours or even days to process. The payment processors also charge high fees that are either added or cut from the user. These systems can also be exclusive to banked customers only, and not inclusive enough to the general community.

Users can make use of SoftNote for frictionless cross-border payments that lead to further cost savings. This offers a low cost solution to remittances from overseas workers.

Blockchains are typically slow. Some are also less decentralized than others, and that could be a security issue when it comes to safeguarding digital assets (i.e. cryptocurrency).

Tectum provides a faster and low cost solution that utilizes a fully decentralized network using Bitcoin and other cryptocurrency for payments. This offers a scaling solution to accelerate transactions on blockchain networks.

When using Tectum with Bitcoin, the platform is never given custody so that users will not have a chance to lose it. Users are provided wallets that give them custody of their private key, unlike Layer 2 solutions that custody the Bitcoin.

It can also provide users with anonymity using off-wallet transactions. Users will have confidentiality on the network, which would otherwise reveal personal data that can be used by third parties.

Conclusion

Tectum has built a payment solution that is zero fee and fast. It can be a reliable way to use Bitcoin and crypto more efficiently, as a Layer 2 provider that helps to scale the network.

It takes the security of the blockchain and scales it for transaction processing. Tectum's network takes on-chain liquidity at a faster speed and with lower fees. 

The best feature is that the system used by Tectum is fully decentralized. This functions as a truly peer-to-peer payment network that is inclusive and not controlled by a central authority, allowing transactions to flow from anywhere and at any time.