> Also what does it mean for the note to be "cut"? Like with scissors?

Yes, exactly. There is a spot indicated on the note to cut it. This "tampers" the associated chip which can be reported back to us so that we release the encryption key to decrypt the local key.

> Is this product just intended for hardcore crypto folks or is it intended for regular people too?

Regular people too! The UX of our app will simplify a big part of this by indicating to folks the state of a note and their options with respect to claiming Bitcoin.