What Exactly Is A Secret Network?

Secret Network is a blockchain platform that allows users to create encrypted smart contracts while maintaining complete data privacy. By encrypting inputs and outputs at the protocol level, it improves the traditional smart contracts. Any sensitive information collected and saved in decentralized apps is kept private by Secret Network (DApps).

Because blockchain transactions are public, there is no guarantee of privacy in the blockchain ecosystem. Even though the transaction’s originating address is anonymous, the transaction’s data can be analyzed and linked to identifiable entities.

Blockchain technology, decentralized finance (DeFi) applications, crypto tokens, and platforms are on the verge of disrupting a slew of businesses that handle sensitive data in previously unimaginable ways. Decentralized Finance (DeFi) is a concept that brings the decentralized concept of blockchain to the world of finance.

Smart contracts are critical to DeFi’s success. These are self-executing pieces of code that can be used to create DApps and are controlled on a blockchain. They are, however, usually made public by default. This means that all of the data gathered and used by DApps on a public blockchain is available to the general public. This is a significant problem for DApps that handle sensitive user information.

The solution provided by Secret Network is built on encryption from the ground up. Tor Bair, the Secret Foundation’s founder, refers to it as “programmable privacy,” and it goes beyond the transactional privacy provided by privacy-focused coins like Monero. It uses a network of computers known as “secret nodes” to perform the computation of smart contracts developed on the platform in a safe manner. To provide safe, private computation, the nodes use a trusted execution environment (TEE). TEE technology is already being utilized to securely handle data on a variety of devices, including smartphones and gaming consoles, ensuring that data privacy is maintained by default. It has to do with how smartphones manage sensitive biometric data like fingerprints.

Here’s how Hidden Network works thanks to secret contracts.

Smart contracts on the Secret Network are named “secret contracts” because they are built with encryption and data privacy in mind by default. Secret contracts, which are written in the Rust programming language, permit DApps to use encrypted data without ever disclosing it, even to the secret nodes that perform the work essential to run the apps. Users have complete discretion over what and with whom information is shared. They can generate “viewing keys” that allow third parties to look at their sensitive information.

Consider it this way: if Dash, Monero, and Zcash are private alternatives to Bitcoin, Hidden Network’s secret contracts are a privacy-focused extension of Ethereum’s smart contracts. They give sensitive data an extra layer of protection and security while keeping transparency. This one-of-a-kind feature safeguards consumers by keeping personal information hidden.

What is the purpose of the Secret Network?

Secret contracts and TEE work together to create unique use cases that aren’t achievable on other blockchains. Secret Network’s potential use cases have already been presented by the Secret Foundation, including secret DeFi apps, non-fungible tokens (NFTs), crypto auctions, exchanges, games, and more. Here are two practical examples.

SCRT

Secret Token (SCRT) is Secret Network’s native crypto coin. The receiver, balance, and transaction amount can all be encrypted, similar to Monero (XMR), Dash (DASH), and other privacy coins. Secret Network’s configurable privacy guarantees anonymity and confidentiality. If SCRT holders want to share their balance with others, they’ll need to create a viewing key.

SCRT is used to pay for costs associated with using Secret Network apps and for on-chain administration, in addition to serving as a currency. To become secret nodes and assist protect the network, users must “stake” SCRT tokens. The tokens are also required to participate in the network’s governance and to vote on ideas that will determine the network’s destiny.

SCRT has a circulating supply of 150 million tokens as of November 2021. It has a market valuation of about $1.4 billion, which is outstanding for a new coin.

Sienna

On the Secret Network, Sienna (SIENNA) is another token. It’s the native token of the Sienna platform, a DeFi exchange and protocol that allows for low-cost private trading, lending, and borrowing. SIENNA tokens can be used as a store of value as well as to vote on suggestions for the Sienna platform’s future.

Wrapped SIENNA (wSIENNA), an ERC20 version of Sienna, is available on Ethereum and is interoperable with the Ethereum bridge on Secret Network. Users can lock their SIENNA tokens on the bridge and mint wSIENNA, making it easier for them to spend their tokens in the Ethereum ecosystem. Send the wSIENNA back to the bridge to get your SIENNA returned, and Secret Network will release the tokens to you.

What Impact Will This Have on Investors?

Blockchain technology has a wide range of possible applications, including finance, healthcare, machine learning, and more. However, none of these possible use cases, particularly in finance, can really take off without anonymity, which is where Secret Network comes in.

The Secret Foundation’s mission is to bring anonymity to every blockchain by utilizing off-chain bridges that allow assets to be transferred across networks. Secret Network announced the introduction of the Secret Ethereum Bridge in December 2020, which enables for asset transfers between Ethereum and Secret Network. There are also plans for many additional bridges to be released in the future.

The project is putting a lot of effort towards DeFi. SecretSwap, a decentralized exchange, was created. SecretSwap is a network-wide automated market maker (AMM) for SCRT and all native tokens (like SIENNA). Tokens purchased on the exchange can be transported through bridges to other blockchain networks or transferred privately to other DApps on the network.

Right now, the project’s most important goal is global adoption. BlockTower Capital, Arrington XRP Capital, Spartan Group, Skynet Trading, and other well-known companies have already expressed interest in Secret Network and made investments.

Final Thoughts

As the world moves toward more privacy-centric services, Secret Network has a lot of potential. Although it isn’t the first blockchain initiative to enable private smart contracts, the TEE solution’s simplicity puts it in a strong position to grab the industry and gain worldwide acceptance.

Link: https://scrt.network/

Coin Market Cap: https://coinmarketcap.com/currencies/secret/

It’s available on Binance.