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Secret Network ($SCRT)
Secret Network ($SCRT)
Secret Network ($SCRT)

Secret Network ($SCRT)

 
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WHAT IS IT

Secret Network is a layer 1 blockchain built with Cosmos SDK and leveraging PoS (proof of stake) using Tendermint Core. Secret Network is interoperable with a range of networks using Cosmos IBC (inter-blockchain communication).
 
It is the first blockchain with data privacy by default, allowing developers to build and use applications that are privacy-preserving and ensure the user's complete data privacy across all dApps (DeFi, NFTs, etc).
 
Secret Network is solving the massive problem of privacy on blockchains. On all blockchains like Ethereum smart contracts are public by default. This means that all the data in the smart contract is exposed to the public.
 
Secret Network solves this problem by improving traditional smart contracts by supporting encrypted inputs, encrypted outputs, and encrypted states for smart contracts.
 
To achieve data privacy, the Secret Network protocol leverages key management, encryption protocols, and Trusted Execution Environments (TEE) that are part of the hardware specification for all validator nodes of the network.
 
Since Secret Contracts launched in 2020 they have experienced insane growth. As of January 2022, they have
  • 30,000+ delegators
  • 70 nodes
  • 70,000+ accounts
  • 9,000+ contracts
  • 10x increase in daily transactions, and a distinct uptick in developer attention. 
 
Secret Network remains the first and only layer-1 chain that offers privacy-preserving smart contracts. The Secret Network community is united by a common mission: to advance privacy as a public good, empowering people by providing the tools, technologies, education, and support necessary to preserve their freedom.
 
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SECRET CONTRACTS

Secret Networks smart contracts are called “secret contracts” because they’re designed to preserve encryption and data privacy by default. Secret Contracts allow developers to create contracts with control over what subsets of data are encrypted. This has never existed before due to the completely transparent nature of public blockchains.
 
Secret contracts use an adaptation of CosmWasm v0.10 for optimal integration with the Cosmos eco. With CosmWasm Secret contracts can run on multiple chains using IBC. Rust is the core language for the development of the Secret contracts.
 
Secret contracts encrypt input and output data as well as network state, keeping it hidden and private from all parties, including the nodes executing the smart contract. With Secret contracts, users and apps can transact and operate without revealing any sensitive data. Secret contracts allow dApps to use encrypted data without ever exposing it, even to the Secret nodes that perform the computation powering the apps.
 
Users have complete and total control over what is shared and with who allowing for total privacy. They have the option to create what is called a “viewing key”. These allow them to control what third parties have the ability to view their sensitive data.
 
DeFi is an obvious example of how users can benefit from this. DeFi apps built implementing Secret contracts would allow users to do things like taking out a loan safely without publicly displaying their transaction info. The implications of these Secret contracts are game-changing for the future of blockchain privacy.
 
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SECRET NODES

The Secret Network is a decentralized network of computers known as secret nodes. They utilize what is called trusted execution environments (TEEs) to allow secure, private computation over encrypted data. Intel SGX is what Secret uses for their TEEs and there are some issues that have arisen around this as Intel has deprecated SGX on all of their consumer hardware which appears to be supported on their server CPUs.
 
See a much more detailed breakdown of the Intel SGX here
 
Just as smart contracts are a trusted neutral party for transactions, in a similar fashion, a Trusted Execution Environment is a neutral party in the form of hardware for secure and private computations.
 
TEEs are the hardware that is located in an isolated area on the main processor of a device that is separate from the main operating system. A TEE ensures that data is stored, processed, and protected in a trusted environment that can’t be tampered with.

SECRET APPS

Secret Network currently shows 26 dApps in their ecosystem utilizing Secret Contracts across DeFi, gaming, NFT, communications, and access control.
 
You can view the full list here - https://scrt.network/ecosystem/dapps
 
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SECRETSWAP

Secretswap is secured by the Secret Network and is the first front-running resistant, cross-chain, and privacy first AMM. There is no order book, no centralized party, and no central facilitator of trade. Built by Secret Contracts, SecretSwap transactions inputs are encrypted - protecting users from front-running attacks and providing an increased level of privacy compared to traditional AMMs.
 
Secretswap is a privacy-first protocol utilizing the power of Secret contracts and enhancing user privacy.

TOKENOMICS

The native token of the blockchain is $SCRT. It is used for. $SCRT however is not a privacy token and worth noting. By default, it is the only part of the network that remains relatively public.
 
  • Running nodes
  • Delegating your $SRCT to existing nodes to earn rewards and secure the network
  • Governance - Helping set the future direction of the network and community
  • Paying gas fees on the mainnet
 

Distribution Breakdown

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More detailed information on the breakdown and distribution decisions can be found here - https://scrt.network/blog/secret-network-tokenomics-and-ecosystem-pool
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