With a US$400 million fund entering the game, what can Secret Network, a privacy public chain, bring to Web3.0?
Original title: "Making Native Privacy a Web3 Standard - Secret Network Builds Programmable Privacy and a Permissionless Data Platform "
Original author: Apple, CryptoJ
Encrypted smart contract metadata unlocks an entire value layer previously inaccessible to DeFi protocols and users, privacy integrated into DeFi products protects users Anonymity, location, and value transfers of . MEV (miner-extractable value) bots are “killing” the enthusiasm of daily active users on dApps on various exchange platforms every day.
For example, some publicly visible collateral positions have caused large market makers to exploit price changes in a favorable way to cause large-scale liquidation events, and some NFT markets The front-running incident has also damaged the reputation of several platforms.
For another example, due to the lack of transaction privacy, various DeFi entities were exposed, and led to strict monitoring of asset transfers, which restricted entities from being discovered by the market. It is possible to hold positions in advance under certain circumstances.
Shade Protocol, a connected privacy-preserving DeFi application built on Secret Network, aims to fill this gap and fully protect the "secret" of the market.
In order to gain a deeper understanding of the Secret Network& Shade Protocol and the meaning of privacy protection, on November 4, 2021, CryptoJ specially invited the leader of the Secret Foundation community And Carter L. Woetzel , the chief researcher of the Secret Network ecological project Shade Protocol, was a guest of this issue of AMA "Secret Network - The Data Privacy Platform of Web3" to start an in-depth discussion on privacy topics.
Talking about Secret Network
Secret Network was previously built on Ethereum The second-layer privacy solution on the Internet, formerly known as "Enigma" built in 2017. Due to scalability issues in Ethereum, the current technology stack is migrating to a first-layer solution built using the Cosmos SDK, utilizing Proof of Stake (PoS) with Tendermint's Byzantine Fault Tolerant consensus algorithm.
Secret Network has the following advantages:
- Data privacy for all DApps
- p>
- Privacy of transactions
- Permissioned key architecture that allows users to decrypt their own transactions and application data locally - Compliance and auditable path
- Built with Cosmos SDK
- Proof of Stake Consensus
- 6 Second Block Time
Secret Network Vision It's simple: bring privacy to every blockchain application. Including DeFi, games, DAO, medical care, insurance, commerce, payment systems, etc. All of these apps need privacy to be truly successful long-term.
The story behind the team
When first meeting a project, many people will compare Concerned about the background of the team members behind, Carter L. Woetze introduced the Secret Network team members to us and shared some interesting stories behind the team.
One of the core development teams behind Secret is SCRT Labs (formerly known as Enigma), a software from the famous Massachusetts Institute of Technology (MIT) development company.
In fact, many of the core contributors to the team have known each other since 2015. Secret has become one of the earliest projects and teams in the blockchain industry, with other major contributors including Tor Bair, CEO of the Secret Foundation - who has helped lead Secret's development and growth in all aspects, including media, community growth, Secret Agents, events, product integrations and collaborations, and more.
Carter himself has been deeply involved in the project since summer 2020 and is the author of the Secret web gray paper (with assistance from Enigma). Currently, focusing on marketing and community management with an emphasis on content creation. If you ever read a paper on secret's main website, it's likely that he authored it.
Additionally, Carter himself is the Shade Protocol's principal researcher and economist. Shade is a matrix of connected privacy-preserving DeFi dApps. The first of these products is Silk, a privacy-preserving algorithmic stablecoin built on Secret.
Financing & Cooperation Progress
Secret two major decentralized transactions All SiennaSwap and SecretSwap have over $140 million in TVL. Secret’s announced investment partners include Arrington Capital, Blocktower Capital, Fenbushi, Hashed, Outlier Ventures, Skynet Trading, and Spartan Group.
Recently, SiennaSwap also completed a financing of 11.2 million US dollars. The biggest milestone of Secret is the growth of the application layer: there are currently more than 10 applications online, and more than 10 projects have obtained grants from the ecological fund, with a current value of about 180 million US dollars. In addition, there are more than 20 applications currently in development, some of which have funding from institutional investors and have not yet been announced.
Source: Secret Network Blog
Secret's vision is simple: blockchains without data privacy are ultimately limited. If you are using the decentralized Didi Taxi, you will not allow your location to be publicly visible on the chain.
This means that not only the balance in the wallet is leaked, but every transaction from start to finish. Applications such as healthcare integrated into the blockchain would not be used if all these records were publicly visible.
Secret believes that privacy is the key to unlocking the full value of the decentralized future.
Join the privacy track
Back to privacy issues, why did Secret Network choose privacy For the blockchain industry, what is the significance of privacy protection, privacy computing, and why privacy is needed, etc., Carter said:
Currently in In DeFi, front-running has caused losses of more than $1 billion to users. Due to the privacy of the application, Secret can completely resist front-running transactions.
On Ethereum and other public chains, due to the high transparency, liquidity provision, investment and trading strategies are copied on the chain, making large and small It is difficult for investors to have a unique trading strategy. Merchants cannot accept true peer-to-peer transactions without compromising the buyer's privacy. Simply put, privacy is utility.
More than that, Secret Network believes that privacy is also a human right, and now Web3 has less privacy than Web2. Fortunately, Secret, as the data privacy platform of Web3, can effectively meet the privacy needs.
Secret Network Interoperability
Why did Secret Network choose to build itself Whether the public chain of the public chain and the Secret Network are interoperable, and which other chains are integrated, Carter said:
With the Secret public chain, you can specialize in the application layer To increase privacy, Secret uses the Cosmos SDK, interoperability becomes easy to interact with IBC. Secret has established cross-chain bridges with the following public chains:
- Monero (mainnet)
- Ethereum (mainnet )
- Binance Smart Chain (mainnet)
- Terra/Luna (testnet)
- Polkadot (testnet)
- Bitcoin (Test Network)
Secret Network Core Competence
Talk When it comes to privacy, you may think of projects such as Nucypher, tornado, sienna, etc. Carter When talking about the core competitiveness of Secret Network, he said:
First, Sienna is built on top of Secret Network.
Compared with other public chains, Secret has launched programmable privacy since September 2020. Secret is not only a transaction mixer, but the combination of Ethereum + Monero + Cosmos is the Secret Network.
Secret uses the TEE+ encrypted sharing model, utilizing hardware-level encryption, which is more scalable and faster than ZK-SNARKS or other alternative solutions.
Secret's theoretical TPS upper limit is about 1000 transactions per second, of which the latest generation of TEE will be incorporated in 2024. Secret will also incorporate unique roll up solutions if required.
Source: Serect Network official website
Secret Network has established many ecological applications, such as Shade protocol, Sienna.network, Carter then introduced to us the ecological Application protocol development status.
Shade Protocol is under active development and is currently raising funds through a private placement. The snapshot for the SHD airdrop started on November 7th and will run until December 13th. So be sure to stake SCRT, Luna, and ATOM to qualify for the airdrop.
Shade Protocol and Silk (Shade's stable currency) are currently testing the network and will be integrated with SecretSwap and SiennaSwap when they are launched. Please continue to pay attention to Shade Protocol, and more product integrations. Shade Protocol is one of the most important Secret product releases so far, and it is expected to go live on the mainnet in the first quarter of next year.
SiennaSwap is actively creating a lending product (SILK will be integrated into this lending product). SiennaSwap was successfully launched in October, and liquidity is currently growing rapidly.
SecretSwap.io -> Decentralized Exchange
Sienna.network -> DEX, lending products will be launched soon< /p>
Auctions.scrt.network -> Closed Bidding OTC Market
Stashh.co -> Privacy-Protecting NFT Market
Altermai.live - > Use secrets for encrypted communications (such as e-mail).
Fardels.network -> Encrypted social media and novel sharing
Bridge.scrt.network -> Bridge to chains supported by Ethereum, BSC, IBC
Scrtgarden.com -- an application for creating, managing and exploring Tokens based on secrets
Secretheroes.es -> the first NFT battle game on the chain that proves privacy protection
Shadeprotocol.io -> Privacy-preserving algorithmic stablecoin
Source: Secret Network official website, display of some ecological projects
NFT series products
Secret Announcing the cooperation with opensea on Twitter, the unique Secret NFT series is expected to be launched and auctioned in November, Carter introduced:
Secret Network announced the partnership with Quentin Tarantino Cooperation, to provide a series of NFTs for its iconic film "Pulp Fiction "Pulp Fiction".
These NFTs will utilize Secret Network's privacy protection features so that NFT data and gallery ownership will be anonymous. These are the first batch of NFTs released on Secret Network by many A-list Hollywood artists, musicians and icons.
Opensea will be used to auction and buy NFTs, but Secret Network is where Secret NFTs will function.
Rebranding
Secret Network announced that the development company behind it, Enigma, will be renamed SCRT Labs. Carter then shared with us the significance of this change for the project. He said:
The Secret Network has seen tremendous success in recent months, with exponential growth in both application layer and on-chain usage. Enigma remains a strong cryptocurrency OG and brand, especially among privacy enthusiasts. But with the exponentially growing size of the Secret community, having an old, static brand like Enigma alongside the explosive potential of Secret was messy and not very effective.
The main goal of the rebrand was to further simplify and create a clear link between the ongoing development work and SCRT Labs' unwavering support for Secret Network . We believe this will help newcomers to the network to better understand the project's stance and motivations, and will also allow for a seamless integration of internal functions such as business development and marketing.
There are a few other reasons for rebranding. Enigma has always been a strong brand (at least in my opinion - I picked it after all), but was still too generic for the end purpose. It was an easier decision to keep the Secret Network when its brand was tied to it, but without that backing, it just doesn't make sense.
Another major reason that few people realize is that Enigma (the development company) is not where the real development of the project is, its business has been reduced to a minimum. Beginning around 2019, the core development and product teams were folded into a company called Gamma. Therefore, the brand using Enigma is a thing of the past with little future value.
Finally, many people still associate Enigma with $ENG - a defunct Token , Secret Network no longer supports nor invests in development efforts. This, of course, adds to the level of confusion as we try to position ourselves as the driving force behind Secret Network and the founding core development team. It should be obvious to anyone that we are all on the $SCRT team.
Token Economic Model
Regarding value capture, Carter shared Secret Network’s Token Economic model, how to motivate users to hold for a long time Token , Token What are the application scenarios and other topics.
Secret Network's native Token Known as SCRT, SCRT can be used for transactions, staking, and governance. Because Secret Network adopts the PoS mechanism, so " Token "Staking" is a key component of network security and consensus, Secret Network's Token The economic model is mainly as follows:
- 102 million SCRTs have been pledged—the annualized rate of return (APR) of pledged SCRT is about 26%
- 9.5 million SCRTs in circulation
- 15% inflation
- About 1 million SCRTs in the community pool (market value about 10 million US dollars)
- Ecology There are about 20 million SCRTs in the pool (market value is about 180 million US dollars)
SCRT pledgers can get about 26% annual rate of return. In addition, SCRT is necessary for Secret Network to execute transactions to pay gas fees Token . SCRT stakers can also get airdrop rewards launched by Secret Network, such as SEFI in March 2021, and the upcoming Shade Protocol airdrop.
Finally, SCRT stakers can directly participate in governance - endowment Token Stakers have a certain say in the decision-making process in the Secret Network agreement.
Source: Secret Network official website
Finally, Carter shared Secret Network's future plans in terms of products and cooperative development. He said:
Secret Network's most exciting recent upgrade is the upcoming implementation of IBC - a technology that allows Secret Network to integrate with other chains like Terra/Luna, Atom, Osmosis, Gravity Dex, Juno, etc. Have a conversation!
Through the call of cross-chain contracts, other blockchains will be able to use the privacy protection function of the Secret network in their applications, and it has just begun to explore The possibilities are endless.
Also, stay tuned for the launch of stashh.co - an NFT marketplace featuring privacy-preserving ownership, access control, and content!
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