The Secret Network (SCRT) is a new blockchain that is designed to revolutionize the use of crypto. It provides unique features, including instant transactions and high scalability. With all these features and components, experts believe that it is a worthwhile investment.
In recent months, there has been a lot of talk about “privacy coins” and the benefits of privacy in the crypto industry. While a majority of the projects are working on this aspect, one of them has been getting lots of attention: Secret Network (SCRT). What is Secret Network?
In general, Secret Network is a privacy-focused blockchain platform that allows developers to create decentralized applications (dApps) that have built-in privacy features. What seems to set Secret Network apart from all other blockchains is its use of ‘secret contracts.’ Fundamentally, they are smart contracts that use encrypted data.
They support more secure and private transactions than traditional smart contracts. For instance, secret contracts can be utilized in the development of lending platforms, decentralized exchanges (DEXes), and many other financial applications. In that context, Secret Network is also working in partnership with other blockchains to enhance its functionality.
Secret Network Overview
The Secret Network is a decentralized network of nodes that supports privacy-preserving computations on data while it remains fully encrypted. Thus, it enables “secret contracts,” which support two or more parties to jointly compute on pate data without having to reveal anything to one another except the income that arises from the computation.
In that context, the Secret Network resolves data privacy issues by letting users share sensitive data without needing to reveal their data to the world. That is accomplished using secure multi-party computation (MPC). MPC is a kind of cryptography that enables many parties to compute jointly on data without revealing anything to one another except the initial outcome of the computation.
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This platform is powered by a native crypto known as Secrets (SCRTs). The cryptocurrency is used to pay for computations on the network. This currency also works as a utility token that enables users to access different network features including decentralized applications and secret contracts.
History Of Secret Network
Secret Network is privacy-focused decentralized crypto that launched in September 2019. The project is spearheaded by a team of experienced developers and backed by a major community of supporters. Secret Network was developed to address the need for privacy in the digital space.
With the rise of blockchain technology, there is a growing demand for privacy-centric solutions that enable users to keep their data secure and safe. Secret Network offers a platform for developers to create privacy-preserving applications on the blockchain.
The platform utilizes innovative cryptography to enable private transactions and smart contracts. Secret Network is powered by a native token, SCRT, which is primarily used to fuel transactions and power the network’s ecosystem.
The developers behind the project are led by a group of experienced developers and entrepreneurs, including Tor Bair (growth advisor at NEAR Protocol) and Ethan Heilman (co-founder of Telepath Labs and a lead developer of Enigma). Moreover, the project is backed by several well-known investors including Fenbushi Capital, Pantera Capital, Electric Capital, and HASHED.
Notably, the concept of the Secret Network came about in 2018 when the Enigma team explored means of scaling private computation. They noted that there was a need for a decentralized network that could readily support confidential smart contracts also known as secret contracts.
In 2019, the developers introduced the Secret Network testnet and announced their vision for a privacy-first blockchain platform. The mainnet launch happened in September 2020.
These developers are convinced that privacy is an integral human right and crucial for the success of blockchain technology. The project is fully committed to offering a privacy-focused platform that lets developers build applications that protect and respect users’ privacy. Interestingly, Secret Network is open source. Hence, contributions are welcomed from anyone who shares the team’s vision.
This ecosystem is expanding continuously, and many applications are already in the pipeline. They include a private social network, a private messaging app, and a private marketplace. The team is also working on incorporating considerable exchanges and wallets to make SCRT highly accessible to users.
Secret Network can possibly change how people interact with the digital world. By enabling private transactions and smart contracts, Secret Network can help develop a highly secure and privacy-respecting internet.
How Secret Network Operates
Secret Network utilized different technologies to achieve privacy, which includes zero-knowledge proofs, homomorphic encryption, and ring signatures. Homomorphic encryption enables data to get encrypted to ensure that it can be processed and analyzed while remaining private.
Zero-knowledge proofs let one party prove to the other party that they know something without having to reveal the information. Ring signatures are digital signatures that can authenticate a message’s validity without having to reveal the signer’s identity.
Secret Network is described as a decentralized network of nodes that support secure, private computation and transaction data that is shared among all the participating parties. These nodes on the network operate together to encrypt data before it gets sent, guaranteeing that just the authorized parties can access it.
It makes Secret Network a perfect platform for developing applications that need confidential data, including healthcare applications, financial services, and supply chain management.
Secret Network has no centralized authority or central point of control, therefore making the network highly resilient to censorship and attacks. It also utilizes a proof-of-stake consensus algorithm that is less resource-intensive than proof-of-work and supports quicker transaction processing.
The platform’s unique strategy for privacy means that it can provide transparency and security. Therefore, users can be confident that their data is safe from theft or tampering while still managing to audit the computations performed on that data. It makes Secret Network an attractive option for developers that want to create applications that need sensitive data but do not want to sacrifice security or transparency.
Secret NFTs
Secret NFTs are non-fungible tokens that can be used in representing ownership of digital assets privately. The tokens are the same as regular NFTs, but they use different mechanisms to hide the identity of the asset’s owner. This makes them perfect for use cases where privacy is needed, such as in trading rare digital collectibles.
Secret NFTs are developed using different protocols, each of which comes with benefits and shortcomings. The most popular protocols for developing Secret NFTs are Ethereum’s ring signatures, Zcash’s zk-SNARKS, and Bitcoin’s Confidential Transactions. All these protocols offer various levels of privacy, with zk-SNARKS providing the highest level of anonymity.
Related: What Is Zero-Knowledge Proof (ZKP)?
Secret NFTs have a massive range of potential use cases, from offering privacy for high-value digital assets to enabling some confidential transactions on decentralized exchanges. Later, Secret NFTs may also be used to develop anonymous voting networks or to help in protecting the privacy of sensitive data.
Currently, the potential use cases include:
- Enabling private transactions between two parties without having to involve an intermediary;
- Storing some sensitive information or data, such as medical records and financial transactions;
- Developing unique digital experiences that those with the needed secret key can only access;
- Tracking and managing digital assets, like artworks and collectibles.
Nonetheless, the use of Secret NFTs has some risks. Since these tokens are designed to hide the identity of their owners, they may be used for illicit and harmful purposes. It is crucial to consider the impacts of using Secret NFTs before implementing them in any form of application.
Secret NFTs are still in the early stages of development, and just a few platforms support them. Nevertheless, as demand for privacy-focused blockchain applications continues to grow, its platforms might emerge and offer this kind of token.
SCRT Token
SCRT token is a digital asset that offers investors a means of investing in the future of blockchain technology. The token is based on the ERC20 standard and can be purchased and sold on exchanges that support ERC tokens.
Being an integral part of the Secured Credit ecosystem, this token enables users to access Secured Credit products and services, including credit lines, loans, and merchant services. Moreover, SCRT token holders can participate in governance decisions on the Secured Credit protocol.
The Secured Credit protocol is described as a decentralized lending platform designed on the Ethereum blockchain. This protocol enables lenders to extend credit to borrowers using crypto assets as their main collateral. Collateral assists in reducing risk for the lenders and makes it possible to offer loans with lower interest rates.
The SCRT token holders can:
- Play a part in governance decisions about the Secured Credit protocol;
- Earn rewards for participating in the Secured Credit network;
- Use this token to access Secured Credit products and services, including credit lines, loans, and merchant services;
- Get discounts on fees when utilizing the Secured Credit protocol.
Related: Crypto Credit Scoring Protocol CreDA partners with FilDA
Advantages Of Secret Network
Using a secret network has many advantages, including enhanced privacy, security, and anonymity. A secret network is a computer network that utilizes cryptography to protect communications from getting intercepted by third parties. These networks are mostly used by governments and businesses to protect sensitive information.
Here are the top advantages of Secret Network:
- Enhanced usability – due to the human-readable programming language, Secret Network is quite easy to use for the end-users and developers alike.
- Improved privacy and Security – Secret Network’s use of “secret contracts” enables the users to ensure that their data remains private and secure while benefiting from the network’s decentralized nature.
- A vibrant community – the Secret Network community is expanding and is already highly active, with many projects and initiatives underway.
- Boosted flexibility and scalability – Secret Network’s distinct architecture supports highly flexible and scalable intelligent contracts compared to the other platforms, making it perfect for most applications.
- Lower costs – because of its efficient design, Secret Network needs less computational power and energy than other blockchains, resulting in lower user costs.
The Takeaway
The Secret Network is a powerful tool that offers boosted security, privacy, and scalability. For now, it is being used by governments and businesses to protect sensitive information and is believed to be on its way to becoming the biggest blockchain platform for privacy-focused applications.
Due to its cryptography and distinct architecture, the Secret Network is the ideal option for users seeking a highly secure and private alternative to the other available blockchain platforms.
