Secret (SCRT)

About Secret (SCRT)

What is Secret Network?

Secret Network (SCRT) is a blockchain built with privacy at its core. Unlike traditional blockchains such as Ethereum, where data is publicly accessible, Secret Network leverages Secret Contracts to offer an entirely different approach to privacy. These contracts are similar to the smart contracts found on other blockchains, but with a key difference: they ensure that data remains encrypted during processing. By using encrypted contract states during execution, Secret Network can perform operations without exposing sensitive data, making it ideal for decentralized applications (DApps) that require privacy.

Built on the Cosmos network, Secret Network combines the power of blockchain technology with advanced privacy features. Its focus on protecting user data gives it a distinct edge in the blockchain ecosystem. By allowing developers to build privacy-first decentralized applications, Secret is pioneering new possibilities in areas like secure voting, private transactions, and confidential content management.

How Secret Network Works

The backbone of Secret Network’s unique functionality is its ability to handle encrypted data without ever revealing it to anyone, not even the validators. This is made possible through the combination of encryption protocols and key management within a Trusted Execution Environment (TEE). Here’s how the process works:

1. Users send encrypted data to the network.
2. Secret node validators perform computations on the encrypted data.
3. After computations, encrypted outputs are returned and validated by other nodes.
4. The final result, still in its encrypted form, is recorded on the blockchain.

The entire process ensures that user data remains private, preventing unauthorized access while still allowing for decentralized validation and consensus. Unlike traditional blockchains where data visibility is standard, Secret Network uses CosmWasm, a smart contracting platform within the Cosmos ecosystem, to execute these private computations.

Key Features and Use Cases

The features of Secret Network make it especially well-suited for use cases where privacy is paramount. Some of the key use cases include:

• Private Digital Content Management: Secret Network can store decryption keys to digital content, ensuring that only users who pay for content can access it. Unlike public blockchains, which expose all data, Secret keeps content secure until it’s decrypted for the rightful owner.
• Secret Voting: With encrypted voting mechanisms, Secret can enable anonymous voting without compromising the integrity of the results. Bids or votes are encrypted before being submitted, and the contract computes the results without revealing any details until necessary.
• Private Auctions: Similar to voting, Secret allows for private bidding, where bids remain encrypted. The contract ensures that the winner is determined without revealing the bids, maintaining confidentiality throughout the process.
• Decentralized Finance (DeFi) Privacy: In the DeFi space, Secret ensures users can transact without exposing sensitive financial data. This opens up new possibilities for privacy in decentralized finance, where privacy can be a significant concern.

The Founders and Development Team

Secret Network was founded in 2017 by Tor Bair, a US-based entrepreneur and MIT alumnus. Tor’s vision was to create a blockchain that emphasized privacy without compromising the decentralized nature of the technology. Secret Network was the first to introduce private smart contracts on the mainnet, which went live in September 2020.

The development of Secret is led by SCRT Labs, an Israel-based organization focused on accelerating the adoption of privacy-first, decentralized technologies. SCRT Labs collaborates closely with the Secret Network Foundation (SNF), a global community of organizations that contribute to the network’s growth. Together, they are working to advance privacy as a fundamental human right and to expand the ecosystem of privacy-focused applications.

The SCRT Token and Consensus Mechanism

Secret Network operates with its native token, SCRT, which plays multiple roles within the network. It is used for staking, governance, and paying transaction fees. Validators who maintain the network and ensure its security stake SCRT tokens and are rewarded for their efforts. SCRT also allows for decentralized governance, where token holders have a say in the future direction of the network.

To maintain network security, Secret uses a delegated proof-of-stake (DPoS) consensus mechanism, powered by Tendermint. In this system, validators stake SCRT to confirm transactions and verify computations. Validators are rewarded for their role in securing the network, and delegators can also participate by staking their SCRT and earning rewards.

The initial supply of SCRT was 170 million, with the tokens allocated to the community, the team, the foundation, and the treasury. The network has a unique inflationary model that targets an inflation rate of 15%, with the potential for this to increase based on staking participation.

Future Potential and Growth of Secret Network

As privacy concerns continue to grow in the digital world, Secret Network is poised to be at the forefront of a privacy-first blockchain revolution. With its combination of secure smart contracts, confidential transactions, and decentralized applications, Secret offers the blockchain community an unprecedented opportunity to build and engage with DApps that prioritize user privacy.

The continued development of Secret Contracts, combined with the growing adoption of privacy-conscious solutions, positions Secret Network as an essential player in the blockchain ecosystem. As privacy becomes more of a public concern, especially in the digital and financial worlds, Secret Network offers a secure and private alternative for users and developers alike.