Before understanding how Bitcoin transactions become cheaper through Tectum SoftNote Bills, we need to understand why gas fees are high. In addition, it is essential to understand how SoftNote is able to work with Bitcoin – a network that has been tagged “unscalable”.
Understanding the Bitcoin Network
Bitcoin is the first blockchain network, setting the path for subsequent projects to follow. Unlike traditional data infrastructures, this system utilizes a decentralized approach for storing and transmitting information against a central server; information is encoded in blocks that are connected via a chain. Data transfer is complete only when a new block has been added.
To ensure transparency, the Bitcoin network uses unbiased individuals we know today as miners. These people must solve a complex mathematical equation to verify and approve transactions. Their goal is to find a number that is smaller than the current hash. For those who do not know, “a hash is a function that meets the encrypted demands needed to secure information.”
The process repeats every time people send or receive Bitcoin via the network. For their efforts, miners who find the correct hash will earn some Bitcoin as a reward. All of these occur because the BTC network uses the proof-of-work consensus mechanism that requires independent miners to “work” and prove that transactions are correct.
Why Bitcoin Gas Fess Are Expensive
So, how does the process above affect the cost of sending and receiving Bitcoin? The reason is simple – the process is expensive. Contrary to what you may think, the verification does not stop when one miner finds a “correct hash”. Instead, other miners need to verify and approve the hash before the new block is added to the chain.
As shown above, miners have to compete for the prize of finding the correct hash. In this regard, it is often common for miners to focus on transactions that will give them better compensation. This may lead to delays in processing smaller amounts of BTC transfers. Worse still, the blockchain can only process 5 transactions per second. As such, it is not just the complexity of mining that impedes efficiency.
Therefore, it is common for traffic congestion and network delays to occur on the BTC network. With slower transactions, people typically have to pay higher gas fees for the same amount of tokens.
For a better understanding, think of it as being stuck in traffic on a 2-lane road with a tollgate. Then, a highway officer offers you the opportunity to follow a special lane that is much faster. However, he will charge you more than the standard fare for the toll. If you cannot afford to delay, you may be forced to pay the extra cost.
Why Bitcoin Transactions Are Cheaper on Tectum SoftNote Bills
Bitcoin is not considered scalable because of the proof-of-work consensus mechanism. To improve the network, the mechanism needs to change. On the other hand, you can simply build an additional layer to support on-chain activities. Doing the former is impossible, as no one holds access to the source code of the Bitcoin network. Instead, Tectum decided to do the latter.
To enable people to send Bitcoin cheaply through Tectum SoftNote Bills, we use a side-chain connected to the BTC network. This side-chain “offloads” the data to be processed for transactions to occur onto the Tectum blockchain, which is more efficient. In simpler terms, SoftNote is a layer-1 blockchain solution that processes Bitcoin transactions on the T12 network.
Remember the fast lane example that we used earlier? It is very similar to this case. However, people will only pay 0.5% of what they send as gas fees. for using this special lane.
Think of owning Bitcoin as having a hybrid car that uses both petrol and rechargeable batteries. Instead of having to pay money for fuel (BTC network), which may be more expensive, you can use the solar panel (T12 network), which is cheaper and faster. Users can learn more about this technology by reading the SoftNote 101 article.
How to Send and Receive Bitcoin Using Tectum SoftNote Bills
Do you want to send Bitcoin to your friends and family without paying high transaction fees? Then you should create an account and start using Tectum SoftNote Bills.
Simply follow these steps:
- Visit the SoftNote Website
- Click on “Create an account”
- Enter essential information
- Verify your email address
- Purchase $TET that you will need to mint or fill a SoftNote Bill
- Transfer Bitcoin to your SoftNote Wallet
- Select the Bill you want to mint or fill
- Add the required amount of liquidity you want
- Send and receive Bitcoin for a bargain via Tectum SoftNote Bills.
Do you know that you can spend SoftNote in physical currencies? Visit SoftNote.cash to spend this crypto cash.
