Today, we’re looking at a blockchain that really lives up to its name!
Secret Network is indeed a blockchain offering smart contracts that protect the privacy of its users. Because it encrypts their data, it makes the details of each transaction invisible to other users on the network as well as to the nodes.
The main added value of this open-source protocol is therefore to add to blockchain technology the privacy that can be lacking on other public networks. Unlike the Ethereum network, where your details are easily accessible via etherscan, Secret focuses on privacy and security , with the ambition of scaling the decentralized web.
The recent announcement of the implementation of the new Shockwaves version of the network seems to make it a network at the beginning of strong growth.
Let's explore the Secret network together, the specificities that can make it a network you can look into (staking, AMM), as well as its native coin and token!
What is Secret Network?
While most blockchains with smart contracts tend to be public, Secret Network uses private smart contracts, whose inputs and outputs are encrypted to ensure the security and confidentiality of user data.
It is the first blockchain to have confidentiality as its objective.
But how does privacy bring real added value to this network compared to an alternative like Ethereum?
For the Secret Network team, this is the key to the mass adoption of blockchain and Web3 technologies. To ensure their scalability, Secret will therefore combine the user-friendliness of Ethereum smart contracts , the scalability and interoperability of Cosmos, and the privacy of Monero.
The best of all three worlds, therefore, in order to create the foundations of a new generation of Web3 applications, both easy to use and secure!
How does it work in practice?
Secret contracts are private smart contracts that use an adapted version of CosmWasm v0.10 to ensure optimal integration with the Cosmos ecosystem. VS
Smart contracts have cross-chain functionality that allows for the encryption of inputs, outputs, statuses, and addresses. The primary programming language used to write Secret contracts is Rust, notably because it optimizes smart contract execution time and offers users lower transaction costs.
When a smart contract is issued in Cosmos, the requester's identity is protected. An encrypted viewing key validates the caller identities and decrypts the data associated with a wallet address. The allocation feature also allows users to allocate a portion of their funds to other accounts, enabling them to manage their balances across multiple contracts.
This system offers users greater control over their privacy, while ensuring the regulatory compliance of the Secret Network.
Additionally, the Secret Network crypto ecosystem hosts a range of decentralized and permissionless applications, also coded in the Rust programming language. These applications can interact with Secret's private smart contracts and use the encrypted data without exposing it.
The SCRT token
Within the Secret ecosystem, we find its native cryptocurrency, SCRT. Quite similar to ETH and BTC, the SCRT coin is essential to participate in and use the DApps backed by the network (notably to pay gas and computing fees).
Users can also stake SCRT to secure the network and earn SCRT rewards in the process. This also allows them to participate in platform governance and vote on proposed protocol changes.
There are several ways to buy SCRT. If you do not reside in the US, you can buy them directly from the Secret Network website or on its exchange SecretSwap (which we will discuss in more detail later).
Although SCRT has been available since February 2021, it only began trading in mid-September when it was listed on Binance . SCRT gradually declined during its first two months of trading, falling from 70 USD cents to a low of 25 cents in early November. Since its modest start, the price of SCRT has seen a rather meteoric rise. It currently has a value of €5.28 according to CoinMarketCap.
The SCRT token
A wrapped version of the SCRT coin is also available on various centralized and decentralized cryptocurrency exchanges (DEXs) as an Ethereum ERC-20 token and a Binance Smart Chain (BSC) BEP-20 SCRT token. This list of exchanges includes Binance, Uniswap, and PancakeSwap, making the SCRT token a highly interoperable cross-chain asset.
Although Secret tokens are inherently private, their minting and burning are public on-chain transactions, and therefore accessible to other users. It is the transactions and your token balance that remain encrypted and anonymous. To access them, you must generate a viewing key, notably to ensure their compliance.
Rather than providing complete transparency by default, network participants can therefore control the degree of confidentiality they wish to maintain.
Among the most common Secret token standards, we find in particular the fungible token SNIP-20. The SNIP-20 standard is relatively similar to Ethereum's ERC-20 and ERC-777 tokens, with enhanced privacy features.
Secret tokens are also freely tradable assets that can be used to create non-fungible tokens ( Secret NFTs ), trade and invest in decentralized applications (dApps) and unlock programmable privacy via Secret Bridges.
How to buy SCRT token with a Keplr wallet?
You will need to install and use the Keplr wallet ( similar to MetaMask ) for all transactions related to the Secret network. Specifically, you will be able to deposit and convert SCRTcoin to SCRT token via your Keplr wallet.
For those who are not yet familiar with Keplr, it is an open source Chrome browser extension that works on the Inter Blockchain ecosystem.
To install the wallet, go here.
You will then just have to create a new account (or import an existing account), configure the username and password of your wallet (a backup phrase of 12 words that you must store securely. Be careful not to disclose to anyone).
Keplr will then allow you to connect to several networks. If you don't already have SCRT tokens, you can for example buy them via Binance, then transfer them to your Keplr wallet. Click on the "Receive in your wallet" option to get your public address and receive your funds.
Then go to Binance and enter the recipient address and the amount of SCRT token you want to transfer. Once you have SCRT tokens in your Keplr wallet, you can go to the Secret Network website and click on the secret SCRT.
An “Add Token” window will automatically appear, displaying the contract address, name, symbol and decimal field details.
Set the fees and approve the transaction. You can now convert SCRT coin to secretsSCRT token or vice versa.
Secret Bridges
Another interesting feature of the Secret network is Secret Bridges . Essentially, it allows holders of Ethereum and Binance smartchain assets to create a confidential version of their assets. These Secret tokens can then be used on the DeFi platform of the Secret Finance network.
However, be aware that not all assets are yet compatible. Terra, Monero , and IBC are next on the list and are already integrated.
How to stake on the Secret network?
Secret Network relies on a Delegated Proof of Stake (DPoS) consensus mechanism to validate transactions and process calculations. Known validators, also called "secret nodes," secure the network and must therefore be constantly available to receive block rewards.
SCRT holders can participate in Secret network staking by running a secret node or by locking SCRT with another node. Staking not only allows SCRT holders to support the network, but also, and more importantly, to earn passive income , with a return on investment (ROI) between 25% and 30%.
Governance of the Secret network
Staking on the Secret Network allows SCRT coin holders to participate in network governance. On-chain governance enables the community to submit and vote on proposals to improve the Secret Network's crypto ecosystem and shape the platform's future development.
SecretSwap and Secret Financial Token (SEFI)
SecretSwap is a private, cross-chain automated market maker (AMM) and liquidity protocol operating on the Secret Network. The SecretSwap.net platform allows users to exchange SNIP-20 tokens via private smart contracts with encrypted inputs and outputs. This protocol ensures that transactions on SecretSwap are secure and resistant to front-running attacks.
The protocol draws cross-chain liquidity from Ethereum, Binance Smart Chain (BSC) , and Monero (XRM) bridges to reduce fees . Another interesting detail: SecretSwap does not use an order book and is not controlled by any centralized party. Furthermore, SecretSwap offers higher levels of privacy than many other AMMs by protecting users against value mining.
The governance token of the SecretSwap platform is the SEFI token. SEFI is a non-inflationary asset with a cap of one billion tokens. Holding the SEFI token grants rewards and also allows holders to participate in voting for SEFI funding.
The final word: A network on the rise that is capturing the attention of investors
Secret Network therefore provides a wide variety of tools and services focused on user privacy. This makes it a particularly interesting DeFi ecosystem for those seeking an anonymous alternative to DApps built on public blockchains, such as Ethereum.
Likewise, the network has just raised funds of more than $400 million from the largest investors.
Moreover, the upcoming release of the Shockwave version suggests a likely growth of the network…
The Secret Network has also worked hard on development and now benefits from a functional ecosystem and an engaged community . While SCRT's tokenomics aren't entirely ideal, the vision for Secret Network extends far beyond its valuation.
In the near future, Secret Network aims to become the benchmark cross-chain privacy platform for web3. And above all spearheading the massive adoption of blockchain. As it continues to build new bridges to other blockchains, it could indeed become the standard in this regard.
“ A secret is something you don’t want to share with everyone, but you still want to share it with the people you trust. A secret is something you want to keep protected—not because it’s bad, but because it’s precious.”
Let's conclude with this quote from the FAQ on the Secret Network website . It perfectly illustrates why privacy is not a trivial detail, but rather a determining factor in the scalability and mainstream adoption of blockchain.
- Discover the official website Secret Network
- Buy SCRT token on Binance or Kucoin
- Download the Kpler wallet
Do not hesitate to subscribe to the newsletter to receive the tutorial on how to earn SCRT tokens.
Note: No financial advice is given in this or any other article on zonebitcoin. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.
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