Secret (SCRT) is a blockchain centered around privacy and is part of the Cosmos ecosystem. Its smart contracts, known as Secret Contracts, enable decentralized applications (DApps) to handle private data on the Secret network, akin to how smart contracts function on other blockchains. Unlike others, Secret Contracts transform encrypted inputs into encrypted outputs, keeping the data hidden. This is achieved through the use of encrypted contract states during execution.
To ensure data privacy, Secret combines encryption techniques with key management within a Trusted Execution Environment (TEE). This setup allows Secret Contracts to handle privacy-sensitive use cases that traditional blockchains struggle with. Examples include private voting mechanisms or credit scoring applications, as these do not disclose sensitive user data on-chain with Secret.
Who is Behind Secret?
Secret is backed by numerous organizations worldwide, with the primary development team being SCRT Labs, based in Israel. Their mission is to develop privacy-focused, decentralized technologies. The founder and CEO of SCRT Labs is Guy Zyskind, a former MIT researcher, known for his significant contributions to blockchain privacy literature.
Another major entity is the Secret Network Foundation (SNF), dedicated to advancing the Secret ecosystem's future. Working closely with SCRT Labs and various ecosystem projects, SNF is pivotal in the evolution of confidential computing.
For more about other contributing entities, refer to the Secret Network website.
What Sets Secret Apart?
Secret Network is notable for its strong emphasis on privacy and complete data encryption, something not offered by blockchains like Ethereum. Developers can create solutions that ensure data privacy without sacrificing functionality, aligning with the network's aim to promote the use of privacy-first, decentralized applications.
Unlike other public blockchains, Secret's node operators use specialized hardware to execute code in secure enclaves known as Trusted Execution Environments (TEEs). Within these TEEs, even device administrators cannot access decrypted information. On the user side, the blockchain operates as follows:
* Users transmit encrypted input to the network
* Validators (Secret nodes) carry out computations on encrypted data
* The proposing validator submits an encrypted output
* Validators reach consensus on the outcomes
* Encrypted outputs and contract states are documented on the Secret Network
The smart contracts function using CosmWasm, the smart contract platform of the Cosmos ecosystem.
Secret has numerous potential applications. For instance, in digital content management, Secret can store a decryption key for content. Once a user makes a payment, the Secret contract provides the key, granting the user access. This is not feasible with traditional blockchains, where data is publicly accessible.
Other use cases include secret auctions and secret voting, allowing encrypted bids and votes to be submitted to a Secret Contract. Here, the contract can compute encrypted outcomes to determine the winner, without revealing individual votes.
In decentralized finance, Secret maintains privacy while enabling a permissionless economic system, opening up new avenues for wealth generation.
How Many Secret (SCRT) Tokens Exist?
SCRT tokens are utilized for staking, voting, and paying transaction fees on the network. Running a node requires SCRT, with validators getting rewards and a share of transaction fees from token swaps. The delegated proof-of-stake model allows token holders who don't operate a node to delegate their SCRT to a validator to earn rewards. SCRT also serves as a governance token.
Initially, there were 170 million SCRT tokens distributed as follows:
* Community: 75 million
* Team: 36 million, with a vesting period of 2-4 years
* Treasury: 30 million
* Foundation: 1 million
* Inflation: 8 million
Secret aims for an inflation rate of 15%, with a potential rise to 20% if less than 67% of tokens are staked, decreasing to 7% when over 67% is staked.
How is the Secret Network Protected?
Secret employs a delegated proof-of-stake consensus system called Tendermint. Validators stake SCRT and receive SCRT from delegators in return for transaction verification, protocol maintenance, and blockchain security. Dishonest nodes risk having their stake reduced.
Where Can Secret (SCRT) be Purchased?
SCRT can be bought on platforms like Binance, Mandala Exchange, Huobi Global, Gate.io, and MEXC.
For more information on beginning your cryptocurrency purchase journey, you can check out our guide.
