ByteSecure

Inspiration

Our inspiration for ByteSecure stems from the urgent need to enhance financial inclusion globally, particularly for those who are unbanked or underbanked. Traditional payment methods, such as credit and debit cards, are not accessible to a significant portion of the global population. According to the World Bank, approximately 1.5 billion people are unbanked, with high concentrations in regions like Sub-Saharan Africa and North Africa, where over 40% of the population lacks access to formal financial services. In countries with unstable regulatory authorities, government-issued currencies can experience significant inflation, further destabilizing their economies.

We define "unbanked" individuals as those who have access to technology but live in countries with weak financial institutions that do not provide traditional banking services like credit or debit cards. Examples of such countries include:

Nigeria: Despite having a growing tech sector, many Nigerians lack access to formal banking services and credit cards.
Philippines: While mobile phone usage is widespread, a significant portion of the population remains unbanked, lacking access to credit and debit card facilities.
Myanmar: Economic instability and limited banking infrastructure result in a large unbanked population.
Bangladesh: Many people in rural areas have limited access to formal banking services and credit cards.
Venezuela: Ongoing economic challenges and hyperinflation make traditional banking services inaccessible to many.

ByteSecure aims to address these gaps by providing a blockchain-powered payment system that does not rely on traditional banking infrastructure. By leveraging blockchain technology, ByteSecure offers a secure and decentralized solution for financial transactions, ensuring users retain full control over their funds. This concept has been validated in real-world contexts, such as United Nations refugee camps, where blockchain has been used to provide financial services to displaced populations.

The recent integration of Solana Pay with Shopify has demonstrated the viability of incorporating blockchain payment solutions into e-commerce platforms. Inspired by these successes, ByteSecure seeks to empower users in underserved areas with a decentralized platform that offers financial autonomy and security. Our goal is to unlock a modern way of living for these individuals, providing them access to a wide variety of financial products and services.

What it does

ByteSecure is a blockchain-powered payment system that integrates seamlessly with TikTok Shop, providing an alternative payment solution that does not rely on credit or debit cards. Built on the Solana (Devnet) blockchain, known for its low transaction fees and ultra-high throughput, ByteSecure supports transactions with Solana’s native token (SOL) and stablecoins from Circle. Alongside typical wallet functionalities such as sending and receiving money, ByteSecure also offers real-time payment (QR code), which supports transactions between local merchant and buyers using a physical QR code. Furthermore, ByteSecure boasts of direct integration with TikTok Shop, enabling users to make purchases directly within TikTok Shop, offering a seamless shopping experience.

As part of this hackathon, we aim to develop a realistic and practical solution that could potentially revolutionize the fintech industry, positioning TikTok as a leading player in the blockchain and fintech space. We will substantiate our features with evidence to support our claims.

Key features include:

Decentralized Control: Users retain full control over their funds, with transactions executed on a decentralized network that prevents accounts from being frozen or restricted.
Security: ByteSecure is built on top of the Decentralised Identity standard, with Magic being an abstraction layer, we ensure that the user is the only person in the world that has full access to his own the fund. ByteSecure strictly enforces an OTP verification system, guaranteeing a non-static credential verification system. Aside from OTP security, ByteSecure further implements additional security measures with the help of Magic to ensure robust protection. These include using Ethereum-based public-private key pairs for identification, with private keys generating verifiable proof of identity. Magic’s patented Delegated Key Management System (DKMS) secures private keys using AWS Key Management Service (KMS) and AWS Cognito for encryption and decryption operations. User master keys are stored in AWS Hardware Security Modules (HSMs), utilizing AES-256 encryption with 384 bits of entropy. The client-to-AWS data flow involves secure, time-bound access tokens and scoped credentials, with keys generated client-side within secure iframes. These measures provide comprehensive protection against threats such as phishing and unauthorized access, ensuring the safety and integrity of user data. For more information, read up more about how Magic enforces security here
Seamless Peer-To-Peer Transactions with Low Transaction Fees and High Transactions Per Second (TPS) supported: ByteSecure facilitates payment transactions between different users (Tiktok Shop’s Buyers to Sellers, Peer-to-Peer, Buyers to Local Merchants, etc.). Utilizing the Solana blockchain, ByteSecure ensures minimal transaction costs, with average gas fees around $0.0015, significantly lower than other blockchain technologies, while being able to support high transactions per second (TPS), thus being able to support Tiktok's large user base for scalability.

Blockchain Payments .

The low transaction fee is further evidenced by successful payment systems like SolanaPay, leading us to choose Solana as the blockchain infrastructure for ByteSecure. Additionally, the low transaction fee surpasses traditional payment providers such as PayPal, which charges 1.5% of the transaction amount plus $0.1, making ByteSecure a strong competitor for digital payments via credit cards.

Moreover, as evidenced below, traditional financial payment methods like PayPal incur additional charges for overseas transactions to certain countries. ByteSecure provides users with an alternative payment method with comparatively lower transaction fees.

PayPal

Integration with TikTok Shop: ByteSecure supports direct payments for TikTok Shop transactions using Solana, USDC, and EURC, with plans to expand to other cryptocurrencies. By integrating ByteSecure with TikTok Shop, we address significant issues associated with international e-commerce, particularly cross-border payments. Traditional e-commerce platforms often face challenges with additional costs and delays due to cross-border payments and the involvement of intermediaries like Western Union. These intermediaries add layers of complexity and expense, resulting in higher prices for buyers or reduced revenue for sellers. ByteSecure's blockchain infrastructure eliminates these middlemen, streamlining the payment process and reducing costs.

Based on our research, we understand that sellers on TikTok Shop absorb additional fees due to digital payments via providers like PayPal.

Tiktok Seller Fee

By adopting ByteSecure, sellers benefit from lower transaction fees, resulting in higher revenue. This incentivizes more sellers to register with TikTok, providing competitive rates compared to other e-commerce competitors.

Moreover, digital wallets have become the preferred choice for e-commerce payments due to their convenience, security and speed according to recent studies. In a report by Kapronasia and Thunes, there is a significantly high proportion of individuals that prefer digital wallets to other forms of digital payments.

Ecommerce drives payments

This shift towards digital wallets is driven by their ability to streamline the checkout process, reduce transaction costs, and enhance user security. Integrating ByteSecure with TikTok Shop capitalizes on this trend, positioning ByteSecure as an optimal payment solution within a rapidly expanding digital wallet ecosystem. As TikTok Shop continues to attract a vast and diverse user base, the seamless integration of ByteSecure provides a compelling opportunity to drive user engagement and adoption. By aligning with TikTok Shop’s e-commerce platform, ByteSecure can leverage the platform's extensive reach to promote financial inclusion and digital payment solutions, ultimately benefiting both ByteSecure and TikTok Shop by tapping into the growing preference for digital wallets.

Real-Time Payments (RTP) - Scan & Pay: ByteSecure offers a feature that allows users to scan QR codes to make instant payments, ideal for local vendors and users in regions with limited access to traditional payment methods. This feature provides an avenue for local merchants to adopt ByteSecure in regions with poor financial infrastructure.

The QR codes integrated into ByteSecure allow merchants to set up a physical QR code at their store for easy payments. This encourages wider adoption of ByteSecure, benefiting both local merchants and buyers. Local merchants can accept an additional mode of payment, and buyers enjoy the convenience of an alternative payment option.

Studies highlight the increasing adoption of RTP Scan & Pay in Southeast Asia. According to a report by Kapronasia and Thunes, the RTP Transaction Value (in USD Mil) in Southeast Asia has been rising from 2018 to the present and is projected to increase significantly until 2026.

RTP Transaction Value .

By supporting RTP transactions via Scan & Pay, ByteSecure can encourage further widespread adoption by users and establish itself as a key player in the payments sector.

Use Cases

Use Case 1: Peer-to-Peer Transaction Between Two Users

Scenario: In many parts of Southeast Asia, individuals lack access to traditional banking services and credit/debit cards. This makes it challenging for them to engage in financial transactions with peers, particularly in rural or underserved areas.

Solution with ByteSecure:

Digital Wallet Creation: Users can create a ByteSecure wallet without needing a bank account or credit/debit card. The wallet operates on the Solana blockchain, which ensures low transaction fees and high-speed processing.
Seamless Transfers: Peer-to-peer transactions are facilitated through ByteSecure’s user-friendly interface. Users can send and receive funds instantly using their ByteSecure wallet addresses. The decentralized nature of ByteSecure ensures that transactions are secure and tamper-proof.
Low Fees: Transactions on the Solana blockchain incur minimal fees, averaging around $0.0015 per transaction. This is significantly lower compared to traditional financial systems, which often have higher fees for cross-border and domestic transfers. ByteSecure eliminates the need for intermediaries and reduces costs associated with transferring money between users.
Enhanced Security: The decentralized nature of ByteSecure ensures that funds are secure and cannot be frozen or restricted. Each transaction is recorded on the blockchain, providing transparency and reducing the risk of fraud. Users have full control over their funds and can securely manage their finances without relying on traditional banking systems.
Accessibility: ByteSecure is designed to be accessible via smartphones, which are widely used in Southeast Asia. Users can manage their funds, perform transactions, and monitor their balance through a mobile application, making financial services more accessible to individuals without access to physical banking infrastructure.

Use Case 2: TikTok Shop Integration: Buyers and Sellers Transactions

Scenario: In Southeast Asia, e-commerce is booming, and platforms like TikTok Shop are popular for buying and selling products. However, many users lack access to traditional payment methods, which can limit their ability to participate in online shopping.

Solution with ByteSecure:

Direct Payment Integration: ByteSecure integrates directly with TikTok Shop, allowing users to make payments using Solana, USDC, or EURC directly within the app. This integration provides a seamless checkout experience, eliminating the need for credit or debit cards.
Enhanced Financial Inclusion: By offering a blockchain-based payment method, ByteSecure enables users who are unbanked or underbanked to participate in online shopping. They can buy products from TikTok Shop using their ByteSecure wallet, broadening their access to e-commerce.
Cost Efficiency: ByteSecure’s use of the Solana blockchain ensures that transaction fees are minimal, reducing the overall cost of payments for both buyers and sellers. This cost-effectiveness benefits small businesses and individual sellers by lowering the fees associated with processing payments.
Security and Trust: Transactions are securely processed on the blockchain, providing an immutable record of each purchase. This transparency helps build trust between buyers and sellers, as both parties can verify transaction details and ensure that funds are properly transferred.
Market Expansion: The integration with TikTok Shop allows ByteSecure to tap into a large and growing user base. By providing an alternative payment method, ByteSecure helps drive adoption and usage among individuals who might otherwise be excluded from online commerce.

Use Case 3: Real-Time Transactions (QR Scanner): Local Merchants and Buyers

Scenario: In many Southeast Asian countries, local merchants and small businesses face challenges with accepting digital payments due to the lack of traditional banking infrastructure. This limits their ability to cater to customers who prefer cashless transactions.

Solution with ByteSecure:

QR Code Payments: ByteSecure’s Scan & Pay feature enables users to make real-time payments by scanning QR codes. Local merchants can generate QR codes for their transactions, which customers can scan using the ByteSecure app to make instant payments.
Immediate Transactions: Payments are processed in real-time on the Solana blockchain, ensuring that transactions are completed swiftly. This immediacy is crucial for maintaining smooth operations at points of sale and enhancing the customer experience.
Low Transaction Fees: The use of Solana’s blockchain means that transaction fees are minimal, which is beneficial for local merchants who may operate on tight margins. This low-cost solution allows them to accept digital payments without incurring significant overhead.
Enhanced Security: Each transaction is recorded on the blockchain, providing a secure and transparent payment process. This reduces the risk of fraud and chargebacks, which can be a concern with traditional payment methods.
Financial Inclusion for Merchants: By adopting ByteSecure, local merchants who lack access to traditional banking services can participate in the digital economy. This inclusion helps them reach a broader customer base and adapt to changing payment preferences in the market.
Future Expansion: The Scan & Pay feature is designed to be adaptable, allowing for future integrations with other popular payment options and services. This flexibility ensures that ByteSecure can evolve to meet the needs of merchants and customers as the digital payments landscape continues to grow.

The above use cases illustrate how ByteSecure addresses the specific challenges faced by unbanked individuals in Southeast Asia, offering solutions that enhance financial inclusion, ensure fund security, and provide convenient and low-cost payment options. Although these solutions are not perfect yet, we strongly believe that ByteSecure brings us closer to solving these problems!

How we built it

ByteSecure is built primarily on the Solana blockchain due to its advantages in terms of transaction fees and scalability. The technical stack includes:

Solana (Devnet) Blockchain: Chosen for its high-performance capabilities, including processing up to 65,000 transactions per second (TPS) on benchmarking tests and maintaining 99.94% uptime over the past year. This ensures ByteSecure can handle the high volume of transactions expected from TikTok Shop’s extensive user base.
web3js/solana: Used to read and write into the Solana blockchain.
Alchemy: Utilized for private Solana blockchain RPC to minimize latency.
NextJS Server Actions: Employed for the backend to provide robust server-side rendering and API handling.
NextJS App Router: Implemented for the frontend to deliver a responsive and high-performance user interface.
Progressive Web App (PWA): Integrated to support easy installation on mobile devices and provide offline functionality through caching. This approach enhances user experience by ensuring smooth performance and accessibility across web and mobile platforms.
Styling: TailwindCSS, shadcn/ui, MUI, Magic UI.
Supabase: Utilized as a relational Postgres database for storing and querying web 2.0 data such as TikTok Shop orders.
TypeScript: Of course! For type safety!

By leveraging these technologies, ByteSecure offers a high-performance, scalable solution that addresses the needs of both users and vendors in the digital payment ecosystem.

Challenges we ran into

Choosing the blockchain: Traditional blockchain solutions such as Ethereum often face criticism due to high transaction costs. To overcome this, we selected the Solana blockchain, which offers remarkably low gas fees of approximately $0.0015 per transaction, addressing past concerns about the high costs associated with blockchain payments. This choice not only reduces transaction expenses but also mitigates additional costs linked with cross-border payments, a common issue in international e-commerce.
High Traffic: Handling the massive volume of transactions generated by TikTok’s large user base required a blockchain with exceptional scalability. Solana's architecture, featuring innovations like Proof of History, Tower BFT consensus algorithm, and Gulf Stream, enables it to manage up to 65,000 TPS. This performance ensures ByteSecure can operate efficiently even under heavy load.
Why not an EVM Layer 2?: Ethereum Layer 2 blockchains such as Polygon and Arbitrum are common solutions to address Ethereum's high gas fees and low TPS issue. We chose not to use Layer 2 because the TPS is still incomparable with Solana, and we wanted to challenge ourselves by exploring something less commonly done (there is far more EVM-based documentation than Solana).
Public Trust: Blockchain technology often faces skepticism due to past incidents of fraud and complexity in user interfaces. To address this, we integrated ByteSecure with TikTok Shop, leveraging TikTok’s established trust and infrastructure to ease users into blockchain payments. By providing a familiar platform and simplifying the process, we aim to build trust and demonstrate the reliability of our solution. TikTok, being one of the most downloaded applications worldwide, has established trust with its users and has the potential of becoming a “by people, for people” financial institution that offers financial products such as loans and insurance for underserved users, directly from within ByteSecure.
Adoption and Onboarding: Typical users could be reluctant to try new things, especially when dealing with financial products or blockchain services. To eliminate the public skepticism about blockchain gas (transaction) fees, we implemented a Paymaster service that covers all users’ gas fees to streamline the payment user experience and minimize onboarding friction. This Paymaster service could act as a promotional campaign on an initial rollout to attract more users or could be a permanent feature of ByteSecure to cover all future users’ gas fees. Since the gas fee for the Solana blockchain is extremely low, TikTok could easily cover such marginal costs due to its economy of scale.

Accomplishments that we're proud of

Integrated Solution: Came up with a solution that complements TikTok Shop, providing a decentralized payment option within a popular e-commerce platform.
Frictionless Onboarding: Adopting email OTP login/signup, abstracting away the need for normal users to keep the private keys while still maintaining a high level of security. Implementing a Paymaster service to onboard more traditional users into the world of blockchain, and eliminate the skepticism the general public may have for gas fees.
Financial Stableness: ByteSecure prioritizes stablecoin user experiences with Circle’s USDC (US dollar stable coins) and EURC (Euro stablecoins), enhances the financial stability of the blockchain payment system and minimizes the speculative aspect of blockchain.
Efficient Performance: Leveraging Solana’s blockchain to achieve high transaction speeds and low fees, making ByteSecure a viable solution for high-volume transactions.
Innovative Features: Implementing the Scan & Pay feature, which enhances the payment experience by allowing quick transactions through QR codes.

What we learned

Our development of ByteSecure highlighted several key insights:

Blockchain Viability: Modern blockchain solutions like Solana offer practical transaction fees, scalability and programmability advantages, making them suitable for high-volume applications.
Integration Challenges: Collaborating with established platforms like TikTok can help overcome barriers to adoption by leveraging existing user trust and infrastructure.
User Education: Simplifying blockchain technology and integrating it with familiar platforms is crucial for gaining user acceptance and trust.

What's next for ByteSecure

Expand Cryptocurrency Support: Introduce additional cryptocurrencies and stablecoins to cater to a broader audience and meet diverse payment needs.
Enhance Payment Ecosystem: Integrate with other popular payment systems and local payment options to further enrich the payment experience. – Token Swaps: Introduce in-house token swap for users to directly swap between stablecoins to facilitate foreign exchange demands, or between SOL and stablecoins to unlock the trading aspect of blockchain with abundant liquidity.
Scale and Optimize: Continuously improve our system’s performance and security based on user feedback and emerging industry trends.
Broaden Accessibility: Explore opportunities to extend ByteSecure as a primary banking option in regions with limited financial infrastructure, providing more people with access to essential financial services. – Compliance: Compliance is key for any blockchain-based solutions, in the future users should be able to directly create a tax report with a touch of a finger, and export wallet statements for auditing purposes. ByteSecure should also integrate KYC (Know Your Customer) directly with TikTok, preventing potential money laundering or other criminal activities.

Sounds good, how can I try?

Go to https://tiktok-wallet.vercel.app/ on your GOOGLE CHROME mobile phone -> Click SHARE -> add to home screen as a PWA -> Access the App (For more info: https://developer.chrome.com/blog/getting-started-pwa/)

chrome-pwa-button

Airdrop yourself some test tokens: Go to Wallet -> More -> Account details and copy your public key

Faucets (to send tokens to yourself for testing):

For USDC and EURC: https://faucet.circle.com/ , choose Solana (Devnet)

For SOL: https://solfaucet.com/ or https://faucet.solana.com/ , choose Devnet

Go to "Send" -> Type in a ByteSecure user of your choice -> Input amount (not exceeding the current balance that you have just airdropped) and press send. Done! The transaction should show up in your wallet's transaction list.

Feel free to explore the rest of our application!

FAQ

Why does the order page also reflect orders that were not made by me?

The order page uses a global state that does not differentiate between users as we have only implemented the wallet authentication logic on the wallet itself. The global authentication logic will be using Tiktok authentication which we did not implement since it is assumed to be there already. The order page is a mean for visualization of order tracking (success or fail).

Why is the name tiktok-wallet in some instances but the group name is ByteSecure?

tiktok-wallet was adopted as our initial name but we wanted to change it to something more unique. Hence, we came up with ByteSecure - which also conveys the sense of security and trust in our wallet system.

Which mobile device should I use?

ByteSecure boast of an easy installation process and seamless user experience on both IOS and Android devices. However, it is best supported on Android.

Does the application lag?

We have tested ByteSecure on both IOS and Android devices across different models and it had worked well with minimal lags. However, do note that it might be rather laggy right after download due to the need to download relevant files to run the application smoothly on your mobile device. Afterwards, ByteSecure should function without lag.