Do you know that you can get the lowest gas fees on Bitcoin payments when you use a special FinTech solution? What if I told you that this option also applies to other cryptocurrencies with high transaction fees, like Ethereum?
Before going into the details, let’s analyze Bitcoin gas fees are typically high and how they impact transactions. This will give us better understanding of the challenges crypto enthusiasts face when transferring blockchain tokens.
Bitcoin gas fees are the commission miners get for processing transactions on the BTC network. At the time of its launches, Bitcoin founders used the proof of work consensus to authorize data transfers. Besides approving the addition of new blocks to the chain, this mechanism also ensured network security.
Miners must prove the authenticity of every transaction they approve to other miners for confirmation before the network adds new blocks to the chain. While this process makes the BTC network impenetrable, it comes at the cost of efficiency. Worse still, users have to pay hefty fees for almost every transaction.
The network processes are energy intensive, and it is only normal that miners charge significantly for every transaction they approve. Otherwise, there will be no incentive for them to continue supporting the blockchain. Some will even go as far as selecting the transactions they want to process and only competing for those with higher fees.
With standard BTC transactions, people open and close the transaction process. The procedure begins with initiating a transfer request. After which, miners will compete for processing your request. Upon completion, the cycle ends, and all parties are happy.
If you want to initiate another transaction, you have to launch the process again. It is almost like turning on your air conditioner or any high voltage electronics for the first time.
On the other hand, think of starting your diesel or gasoline-powered car for the first time. It requires specific measures and typically makes a jerking motion every time you kickstart the car. The same process applies to launching every BTC transactions, it is like you are always starting afresh
Looking at how Bitcoin transaction works, is it possible to scale the process? How does Tectum enable people to pay only the lowest gas fees on Bitcoin payments? Does the Tectum blockchain process Bitcoin transactions?
First of all, it is Tectum SoftNote – a layer-2 FinTech solution that facilitates Bitcoin payments for the lowest gas fees. SoftNote, through a dedicated sidechain bypasses the standard BTC transaction process for more efficiency.
Instead of the need to start cycles all over again, Tectum SoftNote maintains a steady pipeline that continuously processes transactions. In addition, this product enables people to swap tokens without needing to directly send them. While this may seem complex, it is actually very seamless.
As stated earlier, we have a dedicated sidechain that is continually open for processing transactions. Let’s use the car example from earlier for a better understanding. Instead of kickstarting your car every time you want to drive, you can keep it running in idle mode. While the process is a bit more complex than this, the example is just to give people the idea.
With the sidechain always running, Tectum SoftNote takes a different approach in processing Bitcoin transactions. Instead of sending the token from one wallet to the other, the system simply enables exchange of wallet ownership. That is, the Bitcoin is kept in a “mini wallet” and individuals just exchange ownership of the wallet.
Here is a perfect example to help people properly grasp this procedure. Normally, you will need two different email addresses to communicate via electronic mail. However, you do not want to broadcast your message across the mail provider’s network. Instead, you save the message in draft and share your login information with the receiver. The receiver then accesses the same mailbox and reads the message from the drafts.
Unlike with the email example, Tectum changes the login details (which is a unique code) to ensure that the former owner can no longer access the Bitcoin after giving it to someone else.
Thanks to our seamless and simplified FinTech solution – SoftNote, Tectum is enabling people to use Bitcoin and other cryptocurrencies for payments. For those wondering how, here are some ways we are encouraging the use of crypto for transactions:
Do you want to enjoy instant transactions for the lowest gas fees when making Bitcoin payments? Create an account in less than a minute and start sending Bitcoin for less than $5 in fees to every part of the world. Tectum even has dedicated business partners (Merchants) that directly accept SoftNote as payment.
