What is Secret?

Secret (SCRT) is a privacy-focused blockchain that strives to provide an environment with privacy features for decentralized applications (DApps). It is built on the Cosmos network and utilizes a unique feature known as Secret Contracts. These contracts operate similarly to smart contracts on other blockchains, but with a key difference - they transfer encrypted inputs into encrypted outputs without exposing data. This is achieved through the use of encrypted contract states during execution. The core development team behind Secret is SCRT Labs, an Israel-based organization that works towards the adoption of privacy-focused, decentralized technologies. The Secret Network is supported by a global community of organizations and works towards advancing privacy as a human right and public good.

How does Secret work?

Secret functions through a combination of encryption protocols and key management within a Trusted Execution Environment (TEE). This allows Secret Contracts to compete for privacy-related use cases that traditional blockchains have found challenging to accommodate. Users send encrypted input to the network, which is then computed over by validators (the Secret nodes). The proposing validator submits encrypted output, and validators achieve consensus on the results. The encrypted outputs and encrypted contract state are then recorded on the Secret Network. The functionality of the smart contracts is based on CosmWasm, the smart contracting platform of the Cosmos ecosystem.

What are the potential use cases for Secret?

Secret has various potential use cases. For instance, digital content management platforms can use Secret to store a decryption key to the content. After a user pays, the Secret contract shares the decryption key, and the user receives their unique access key. This would not be possible with traditional blockchains since the data is publicly visible. Other examples include secret auctions and secret voting, which could utilize the encrypted bids and votes they can submit to a Secret Contract. In this scenario, the contract computing encrypted outputs can determine the winner without revealing the votes. Secret also works towards maintaining privacy in decentralized finance with a permissionless economic system that provides economic opportunities.

What is the history of Secret?

Secret was founded in 2017 by Tor Bair, a US-based entrepreneur and MIT alumni. The Secret Network was the first protocol to provide private smart contracts on the mainnet, live since September 2020. It uses a combination of the Intel SGX (Software Guard Extension) Trusted Execution Environment technology, several encryption schemes, and key management to bring privacy by default to blockchain users. The initial total supply of SCRT was 170 million, distributed among the community, team, treasury, and foundation. Secret uses a delegated proof-of-stake consensus mechanism called Tendermint, where validators stake SCRT and are compensated by delegators for verifying transactions, ensuring the protocol is running, and maintaining blockchain security.