What is Secret?

Secret Network is a self-contained, base-layer blockchain network created using the Cosmos software development kit (SDK). This network facilitates smart contract creation and adds data privacy by default for these contracts, allowing developers to create decentralised apps (dapps) that also safeguard user data and maintain privacy. The Secret Network uses a Byzantine fault tolerance (BFT) delegated proof of stake (DPoS) consensus engine called Tendermint, and its native token is called Secret (SCRT).

In order for blockchain technology to be widely used, the project thinks that consumers and organisations must have granular control over their data. The network supports ‘programmable privacy’, defined as the ability to build arbitrarily complicated data privacy protections inside an application. Secret Network refers to this privacy-preserving software as Secret Apps.

A brief history of Secret

The Secret Network began as Enigma, a 2017 project that introduced a Layer-2, private-compute solution to Ethereum. However, Enigma eventually settled with the US Securities and Exchange Commission over its US$45 million ICO in 2017; on 13 February 2020, the network's mainnet activated, and was officially renamed Secret Network in May 2020.

Enigma MPC, which created the original Enigma protocol, is currently one of the numerous development organisations contributing to the core technology of Secret Network.

The Secret Games Incentivized Testnet launched on 20 June 2020, lasting almost two months and drawing well over 100 users. This testnet event allowed Secret Network developers to stress test the chain in a live adversarial environment before the Vulcan hard fork update to enable smart contracts (or Secret Contracts) on the mainnet.

SCRT’s token burn contract was launched on 24 June 2020. Owners of ENG, the original ERC-20 token for Enigma, were able to convert their cryptocurrency to SCRT via this burn contract, and approximately 62 million SCRT have been burned since then.

SecretSwap, Secret Network’s first significant application-layer DeFi application, became available on 17 February 2021. It is a cross-chain Automated Market Maker (AMM) protocol prioritising privacy.

How Secret works

The concept behind Secret Network is the combination of the simplicity and familiarity of Ethereum’s smart contracts with the secrecy and interoperability of privacy tokens, such as Monero and Cosmos. Secret Network employs — and was the first network to launch — privacy-preserving smart contracts, known as Secret Contracts, to enhance anonymity and secrecy. It is also one of the first blockchains to make use of encrypted inputs, outputs, and blockchain states. Because contemporary blockchains are public by default, this method opens the door to novel use cases, and allows users to build more secure dapps.

As a default, the Secret Network encrypts all data. To gain access to private information, users must give Secret Keys, which may be distributed to others in order to provide them access. This method enhances data management capacities.

Secret Network also aids in Web3 adoption. The protocol employs a simple interface and wallet, allowing users with no prior technical skills to produce NFTs and other digital assets. Furthermore, new users may traverse the network and use services straight from the wallet, which simplifies onboarding.

What is Secret used for?

SCRT is used to execute secret contracts in the Secret Network and pay all computational and transactional fees associated with applications on the network. SCRT users can also stake their tokens with the network’s validators to help secure the network and, in turn, their rewards. In addition, those who stake their SCRT tokens can join in the governance of the network and help set its future direction.