Secret Network: What Is It?
A blockchain network called Secret Network allows for encrypted smart contracts and assures total data privacy. By encrypting inputs and outputs at the protocol level, it enhances the functionality of conventional smart contracts. Secret Network guarantees anonymity for any private data gathered and kept in decentralised apps.
Privacy in the blockchain environment isn’t guaranteed because blockchain transactions are publicly available. It is still feasible to examine a transaction and link its data to certain entities even if the address initiating it is anonymous. There are already rumours that government organisations are developing bitcoin tracing tools based on this theory, which is problematic in a time when data privacy and digital security are major concerns.
Numerous businesses that handle sensitive data in novel ways are ready to be disrupted by blockchain technology, decentralised finance (DeFi) applications, platforms, and tokens. In reality, by permitting digital payments devoid of the approval of a centralised authority, DeFi is poised to fundamentally alter the financial environment.
Smart contracts are crucial to DeFi’s success. They can be used to create DApps and are essentially self-executing pieces of code that are controlled on a blockchain. But usually, they are open to the public by default. This implies that any information used and gathered by DApps on a public blockchain is made available to the general public. For DApps that manage sensitive user data, this is a major problem.
The answer provided by Secret Network is encryption from the ground up. It goes beyond the transactional secrecy provided by privacy-focused coins like Monero, according to Tor Bair, the founder of Secret Foundation. The calculation of smart contracts created on the platform is securely carried out via a network of computers referred to as “secret nodes.” To enable safe, private computation, the nodes make use of a so-called trusted execution environment (TEE). Data processing using TEE technology already maintains data privacy by default on a variety of platforms, including mobile devices and gaming consoles. It’s the way cellphones handle delicate biometric information, like fingerprints.
What Purpose Does Secret Network Serve?
Unique use cases are made available by the combination of secret contracts and TEE that are not achievable on other blockchains. Numerous potential use cases for the Secret Network have already been put up by The Secret Foundation, including non-fungible tokens (NFTs), crypto auctions, exchanges, games, and more. These are two important use scenarios.
The native currency of Secret Network is SCRT Secret Token (SCRT). The receiver, balance, and transaction amount can all be encrypted, just like Dash (DASH), Monero (XMR), and other privacy coins. Anonymity and secrecy are guaranteed by Secret Network’s programmable privacy. If SCRT holders want to show their balance to outside parties, they must generate a viewing key.
SCRT serves as a medium of exchange and is also employed for on-chain governance and app usage fees on the Secret Network. To become hidden nodes and contribute to network security, users must “stake” SCRT tokens. Additionally, the tokens are necessary to vote on network ideas and take part in the network’s governance.
There are 150 million SCRT tokens in circulation as of November 2021. Its market worth of approximately $1.4 billion is amazing for a young coin.
Another token that can be found on Secret Network is called Sienna (SIENNA). It is the native currency of the Sienna platform, a DeFi exchange and protocol that permits low-cost private trading, lending, and borrowing. Tokens for the SIENNA platform can be used as a store of value and for voting on proposals for the platform’s development.
Wrapped SIENNA (wSIENNA), another ERC20 variant of Sienna, is available on Ethereum and is compatible with the Ethereum bridge on Secret Network. Users have the choice to mint wSIENNA and lock up their SIENNA tokens on the bridge, making it simpler for them to spend their tokens within the Ethereum ecosystem. Send the wSIENNA back to the bridge if you want your SIENNA back, and Secret Network will return the tokens to you.
There are a maximum of 10 million SIENNA tokens in circulation. It was introduced in September 2021, so it’s not too old. By November 2021, its market cap had managed to increase to $42 million.