What Is Secret (SCRT)?

Secret Network is a blockchainprotocol that allows decentralized apps (DApps) to perform encrypted computations. Secret Network also offers users a platform to create censorship-resistant apps by utilizing encrypted data. Secret uses a decentralized network of computers ("secret nodes") rather than allowing specific entities to maintain confidential data. Every node operator has specialized hardware to run programs in safe enclaves, commonly known as trusted execution environments (TEEs). Nobody can see the raw data getting decrypted and processed within enclaves, including device administrators.

There are various features in the platform's ecosystem, like Secret Finance, Secret NFTs, Secret token (SCRT), etc. Secret Finance is the umbrella term for all decentralized financial (DeFi) applications enabled by Secret Network smart contracts. Secret Finance applications are private by default since smart contracts on Secret Network are securely encrypted. This means users' sensitive financial data is secured from prying eyes, unethical actors, and even front-running bots. However, users' financial information can still be shared with people they trust, such as auditors and compliance officers, as well as third-party wallets and explorers. Users may choose how their sensitive financial data is used with Secret Finance while benefiting from the decentralized web.

Next, Secret NFTs were created using the Ethereum ERC721 token standard and have many of the same advantages as traditional NFTs. These one-of-a-kind products can be used for various purposes, but the platform feels that tokens representing users' goods and experiences should be private. Besides this, creators can determine who has complete access to their work using Secret NFTs. An artist can make a thumbnail version of the image public so that customers know what they're getting, but the full-quality version is private and must be purchased to see.

Further, Secret (SCRT) is a cryptocurrency and the Secret Network blockchain's native token. Users keep their Secret (SCRT) in a wallet, just like any other cryptocurrency, and spend it when they want to use Secret Network. Users must hold and spend SCRT to use applications on Secret. SCRT is also used in paying all computational and transactional fees related to network apps. 

SCRT protects the Secret Network and is also used for governance. Nodes in the network are paid in SCRT for fees and network incentives, and they must stake SCRT to operate. The coins staked on the network and the SCRT inflation rates determine the returns. SCRT allows secret nodes to create and vote on governance ideas, allowing decentralized network control. The majority of network parameters, such as inflation and community tax rates, are determined by SCRT on-chain governance.

How Are New SCRT Tokens Created?

The network uses a popular delegated proof-of-stake (DPoS) consensus algorithm, as mentioned in the whitepaper. DPoS works similar to proof of stake in that both require users to stake coins to participate in consensus. The fundamental distinction is that in a PoS network, staking allows all coin holders to participate in invalidation and decision-making directly. However, DPoS users who own the blockchain's token can vote for "delegates." The elected delegates then make critical choices for the entire network, such as determining whether transactions are valid and establishing protocol standards.

History of Secret (SCRT)

The Secret Foundation maintains the Secret Network ecosystem. The Secret Foundation assists the Secret Network community (and the foundation itself) in building efficient and effective governance and communication processes. The foundation also produces valuable educational materials and advances research and development of privacy-preserving networks. Apart from that, there is a board of directors, an operating team, and community committees in the foundation.