Tectum SoftNote is a flagship product based off on the Tectum blockchain. The Tectum blockchain is a Bitcoin Layer 2 scaling solution that promises to address the gaps of the lightning network and that of all the other blockchains. The Tectum blockchain transacts at 1.3 million TPS. Compare this with the Bitcoin blockchain transaction speed that is between 3 to 7 TPS. Even Solana, marketing itself as one of the fastest blockchain is only at 65,000 TPS.

Layer 2 solutions aims to increase transaction speed by handling transactions off the main chain (Layer 1). Handling transactions off-chain reduces the costs and lowers transaction fees. Existing Layer 2 solutions include the Lightning Network, Stacks, Liquid Network and others. Each of these Layer 2 solutions have something to offer on the table and can drive adoption to the Bitcoin ecosystem.

Tectum Blockchain and T12 Protocol

The T12 protocol is the token standard in Tectum blockchain for holding and transferring cryptocurrencies. The protocol ensures that cryptocurrencies are delivered to the correct recipient.

The T12 protocol has integrated the following into the Tectum blockchain:
1. Users who sends Bitcoin using the network does not need to pay gas fees! Instead, a meager 1% commission is received from merchants to compensate for individuals who mints SoftNote or adds liquidity to the bills in circulation.
2. Avoiding network congestion also ensures that denial of service does not happen. This says a lot about the security of Tectum blockchain. A blockchain experiencing outages often gets exploited by hackers or scammers and ensuring a smooth operation of the blockchain avoids this.
3. Using zero-knowledge proof, users can have privacy. Users can initiate and complete transactions without revealing their personal information.

The Tectum blockchain is capable of providing fast transport because of the following:
1. It uses a block formation protocol that avoids the clustering of transactions, i.e., Tectum does not require mining on its blockchain like other blockchains using Proof of Work or Proof of Stake algorithms. Because of this, transactions are not delayed, resulting to lightning-fast transactions.

2. It uses a three-tier node to process transactions compared to existing blockchains that only uses a single node each time, i.e., think about a multi-lane highway but only one car can pass at a time. Tectum uses a multi-lane highway and multiple cars can pass at all times. This is achieved by segregating transactions between a static (data does not change) and dynamic layers (data changes regularly) and using a Distributed Ledger Technology (DLT) that allows fast retrieval of data. The lightning-fast distributed ledger is a NoSQL database that is self-healing, decentralised, and redundant.
3. Each node in the Tectum blockchain uses a network map to identify its nearest peer, avoiding duplication. This reduces the load to the network improving the overall performance.
4. It sends command transmissions to each node, compared to other blockchains only transmitting raw content. This enables each node to have clear instructions on how to build new blocks from the previous one.

Tectum uses a Proof of Utility consensus algorithm, similar to Paxos (provides crypto brokerage). They otherwise call the algorithm "Proof of useful work". Blockchains using Proof of Work and Proof of Stake rely on miners, but Tectum has no miners and instead the processing of transactions is entrusted to a random node. This node is handpicked using a "Lottery" principle after qualifying to become a Master Node.

Tectum (TET) is the native token of Tectum blockchain and is used for minting SoftNote, paying fees, staking (using a combination of Proof of Stake and Proof of Utility), and supporting other Tectum products. It has a total supply of 10 Million.

Tectum Softnote Product

SoftNote was invented in 2020 and are digital banknotes that represents Bitcoin wallets. It allows access to Bitcoin and other cryptocurrencies within the wallets. It is not a replacement for tokens nor it is a cryptocurrency. Its a smart contract-powered wallet and ownership of the wallet means ownership of the cryptocurrency.

SoftNote can be sent Peer-to-Peer (P2P) or Peer-to-Merchant (P2M) via SoftNote web wallet or POS.

The advantages of SoftNote includes the following:
1. Transactionless: SoftNote changes hands by transferring wallet ownership and keys.
2. Zero fees: The fees are charged to the retailers and not the users.
3. Anonymity: Every transaction has a layer of anonymity since the wallet ownership changes between hands and not tokens.
4. Scalability: SoftNote is powered by Tectum blockchain that processes 1.3 Million transactions per second.
5. User-friendly: Users use a QR code and passcode system instead of using the complex public key to send transactions. Once the receiver scans the QR code and enters the passcode, SoftNote issues a new passcode to the receiver.

I opened a SoftNote wallet as part of this review. A user can create his own account or login using a Google account. Two-factor authentication is observed by sending a code to the registered email.

The web wallet has a sleek design and I like the dark them with the blue highlights. The web wallet enables the user to manage his SoftNotes as well as existing cryptocurrencies, such as Bitcoin, USDT, ETH, etc. using the SoftNote Wallet and Crypto Wallet options on the Wallet tab, while the X-Port Ready is used to export the tokens to an external wallet or what they term as "burn" SoftNote bills (for Bitcoin).

The user can interact with the SoftNote wallet in three ways via the SoftNote Mint House:
1. A user can mint a SoftNote with the correct denomination. Minting creates a new SoftNote bill and a wallet in the target blockchain. Once the bill is spent, the user is rewarded.
2. A user can also fill the liquidity of the Softnote with the correct denomination. Each time the liquidity is spent, the user is also rewarded.
3. A user can transfer SoftNote using the X-Port Ready feature where you can proceed in burning your SoftNote so the blockchain can provide you the private keys of your tokens.

Most of the features of the wallet are still in development status. When I created a wallet, there is a message that reads "SoftNote Wallet works in beta mode, there may be some failures in the work." New features under development include mobile device access to the wallet, Green Bills, and Rewards and Merchant features.

SoftNote Ordinals

Other benefits that Layer 2 solutions provide is flexibility. Bitcoin cannot support complex smart contract functions like Ethereum and other blockchains. Bitcoin was originally created as a peer-to-peer digital payment system. Before, it was hard to imagine having NFTs and DeFi in Bitcoin. But now, there are Ordinals NFT available to rival other NFTs in the crypto industry.

The Tectum team recently launched SoftNote Bitcoin Ordinals in December 2023 allowing users to store unique identifiers on a Satoshi, the smallest unit of Bitcoin, much like an NFT that is personally owned by a user. This says a lot about how scalable Tectum blockchain is and an example of how it can be incorporated into the Web3 ecosystem.

Conclusion

Looking for the ultimate blockchain technology can be a long journey, but after discovering Tectum, its promising capabilities may have a shot in solving the crypto trilemma.

To understand the crypto trilemma, look at it this way, Bitcoin has security and decentralisation but lacks speed, Ethereum has security and speed but still lacks decentralisation, while Solana has decentralisation and speed but lacks security. There is no existing blockchain technology that has resolved the crypto trilemma because maybe the technology by default does not simply allow it and only an overlay technology can provide all three. I will have my eye on Tectum these coming months and years as there is no other blockchain that is near as Tectum in having potential features that can address decentralisation, security, and speed.

The Tectum SoftNote product is aimed at users who want to make fast and secure payments. But, this does not stop the promising multiple uses of the Tectum blockchain in Web3. This just means we can expect more features to come out from Tectum SoftNote that sure enough, will finally end the journey of looking for the ultimate blockchain technology! 

Note: All images are from Tectum website (tectum.io)