An Arkade Note is a recoverable VTXO and is akin to a virtual voucher created by the server and redeemable for VTXOs.Arkade Notes are designed for several purposess:
Smooth user onboarding. An operator can issue Arkade Notes that users redeem for a VTXO
Offchain VTXO spending Arkade Notes can be sent via standard communication channels (eg. messengers, NFC, ..)
Each note starts with the prefix arknote and contains (CreateNoteRequest):
A Unique ID (uint32): a distinct identifier for tracking each note
Value: the amount this note is worth
Server Signature: a signature on the ID | amount hash validating authenticity
Notes appear in the VTXO system as recoverable inputs. In the GetVtxos API, the recoverable_only filter specifically refers to notes, sub-dust, or swept VTXOs.
Redeeming a note works much like spending a VTXO offchain. Instead of providing a VTXO as an input to an intent, the client includes the Arkade Note. The note is then marked as spent (ensuring double-spent protection) and replaced with a new VTXO belonging to the user.