Before going into the details, we will first explain how the standard cryptocurrency transfer process works. Knowing how the regular process of cryptocurrency transactions works will give proper insights into why users would typically require a blockchain wallet. After that, we will then outline how Tectum SoftNote Bill scales the Bitcoin transfer system that removes the need for wallets.
When you buy Bitcoin with your MasterCard, Visa, bank transfer, or peer-to-peer (p2p), you have to send your public key to whoever you are purchasing it from. This public key is also your wallet address, and it is the pathway through which cryptocurrency enters your account. The public key is connected to a private key. These elements work together in completing transactions.
Bitcoin remains as data on the blockchain and is transferred using cryptography. Since transactions are on-chain, they follow the standard process of verification and authentication. While the public key receives the data (or Bitcoin in this case), it is the private key that authenticates it.
Once the private key authenticates the transaction, the network broadcasts it, and it remains permanent. The aim of this system is to ensure that one individual cannot send the same Bitcoin to multiple people. Let’s consider an example for a better understanding.
A great example is your bank using parts of your account number as a password for encrypting your account statement. This will be such that only the actual owner of the account can access the details in that mail. The email address is the public key, while the specific digits of your account number are the public key.
So, why can people not make a Bitcoin payment without a blockchain wallet? The answer is simple — the wallet holds the public and private keys. The wallet’s public keys generate the address that people can use to receive Bitcoin and other cryptocurrencies from their friends.
On the other hand, the private keys are what authenticate the transaction and inform the entire network that you are the new owner of the cryptocurrency. In addition, they also help to protect digital assets from theft. For those who do not know, the private keys also create and encrypt the public keys (wallet address). Thanks to private keys, no one can transfer liquidity from your wallet using your public keys.
Contrary to popular opinion, there are numerous ways to store a private key. As shown in the recent integration of the T12 protocol into Metamask, most blockchains use a 64-digit hexadecimal code. However, this is not the only form of private keys.
Other forms of private keys include:
- 256-character long binary code
- QR code
- Mnemonic phrase
Most Web3 companies prefer to use the 64-hexadecimal code because it is more secure than a 256-character code or QR code. In addition, it is easier to incorporate than the mnemonic phrase. Considering these factors, it is now evident why users need a Blockchain wallet to receive or send Bitcoin. This also explains why the cryptocurrency transfer process is so manual and complex
Tectum SoftNote Bills enables people to send and receive a Bitcoin payment without actually owning a blockchain wallet. To do this, the Tectum blockchain uses a QR Code as a private key instead of long lines of numbers or text. The sender simply sends the QR Code to the receiver who scans it to receive the liquidity contained in the bill.
To ensure security, Tectum utilizes a secret code as an extra layer of protection. After scanning the QR Code on a SoftNote, the receiver must get a secret code from the sender. This is what confirms the transaction and informs the network that ownership has changed.
Okay, this may get a bit confusing, but SoftNote Bills themselves are a form of wallet. To understand them better, think of them like credit cards. Unlike regular credit banks, they can be connected to a standard Tectum Wallet or operate in isolation.
So when you transfer liquidity in SoftNote Bills, you are simply exchanging ownership of the “mini wallet”. It is more like giving your credit card and its PIN to a friend, merchant, store attendant, or any third party. This enables the receiver to use the funds contained in the SoftNote Bill as they choose.
Another advantage of SoftNote over credit cards is that people can burn bills to retrieve the liquidity it contains. This way, people do not have to forfeit their funds whenever they decide that they no longer want to use the technology.
The benefits of using SoftNote Bills extend beyond making a Bitcoin Payment without owning a blockchain wallet. Here are other substantial reasons why you should use SoftNote to send and receive cryptocurrencies:
- All Bitcoin transfers are completed in less than a minute when you use SoftNote Bills. This is because transactions take place on the T12 protocol — the native blockchain of Tectum.
- Senders can transfer Bitcoin for free without having to pay the gas fees. Merchants who use SoftNote to receive crypto payments will only pay a 1% commission.
- Transactions done via SoftNote are completely anonymous and protects users’ identity. Tectum blockchain uses zero-knowledge proofs when broadcasting transactions on the network to ensure that details like wallet balance remain private.
- SoftNote can be used to transfer other cryptocurrencies like USDT, ETH, and TRX. Users are not limited to BTC alone. Tectum will be adding more tokens according to the demands from members of our community.
