Why Tectum SoftNote Bills Transactions are Powered By Blockchain Technology and Smart Contracts - Tectum Blockchain

Why Tectum SoftNote Bills Transactions are Powered By Blockchain Technology and Smart Contracts

In SoftNote 101, we explained how this technology facilitates simple Bitcoin transactions. One of the most essential benefits of this technology is that it gives people 100% control at all times. This is because transactions done via Tectum SoftNote Bills are powered by smart contracts and blockchain technology. However, this is not a very popular crypto solution.

Why Tectum Softote Bills Transactions are Powered By Blockchain Technology and Smart Contracts

More often than not, similar blockchain solutions often prefer a DAO that is pioneered by members of the community. This article will compare both approaches and identify their benefits and downsides. The aim is to enable individuals to understand why Tectum decided to work with technology rather than people.

What DAO Pools, and How Do They Work With Processing Crypto Payments?

Before discussing DAo pools, we need to understand what DAOs are. The Decentralized Autonomous Organization is a blockchain institution comprising people who have a common goal and collective resources. These institutions often use their combined assets to complete tasks like acquiring digital assets or similar decisions.

New members who want to join the DAO must equally contribute to the pool. In return, they get an NFT or other form of representation to signify their rights. These individuals can also vote to decide whether an initiative should be taken, and there is typically a threshold the voting numbers must reach for approval.

While there are various definitions of DAOs, the most defining attribute is the presence of a collective treasury. Since these entities already have a portfolio, what is a DAO pool?

DAO pools are simply the already-pooled resources, and new members follow suit in donating their funds to the community pool. To understand how it works in terms of processing crypto payments, we need to revert to the voting process. As mentioned earlier, members of a DAO vote on decisions regarding the enterprise. This applies to the distribution of funds in the community pool.

The advantage is that community members collectively decide how, when and where to utilize pooled funds. On the downside, funds may not be disbursed or transactions approved if the DAO vote numbers do not reach the required threshold. This means that users cannot access their tokens when they need them. In addition, a successful cyberattack on the community pool can result in a total loss of assets.

Why Tectum SoftNote Bills Use Smart Contracts to Process Transactions

To ensure more flexibility and ownership, Tectum SoftNote Bills process transactions using smart contracts. Instead of adding every token to a community pool, this system stores them in individual wallets. Whenever someone wants to send or spend their cryptocurrencies, they simply initiate a transaction. The smart contract completes the process once all conditions have been met.

There are several reasons why Tectum chooses to process SoftNote Bills transactions via smart contract. Some of them include the following:

  • Autonomy and Total Control: the most significant difference is the level of authority people have over their funds. SoftNote Bill is not an NFT or digital asset people get when they give their cryptocurrencies to Tectum. The bills are actual wallets that store crypto for users and give them unlimited access.
  • Flexibility and Ease of Access: Thanks to the level of autonomy individuals get with Tectum SoftNote Bills and its smart contract, they have the flexibility to use their funds at any time. They do not have to wait for DAO votes to reach a certain threshold or any other requirements.
  • Security and User Protection: As mentioned earlier, cryptocurrencies are stored in a community pool. This means that any cybersecurity vulnerability will see everyone lose their tokens. This has happened, with Genesis DAO Heist being a very famous reminder. With Tectum SoftNote Bills and smart contracts, people keep their tokens in individual wallets. Therefore, the hacker will have to break into every individual wallet to access the crypto stored in them.

Get maximum flexibility, security and control over your crypto portfolio. Register and create your own SoftNote Wallet and use Bitcoin in a more spendable way.