Secret Network

About Secret Network

Secret Network operates as a layer-one blockchain protocol distinguished by its implementation of privacy-preserving smart contracts, referred to as "Secret Contracts." This functionality enables developers to build decentralized applications (dApps) where sensitive data is encrypted by default, granting users control over their information. The network's origins trace back to Enigma, a project founded in 2014 by MIT graduates Guy Zyskind and Can Kisagun. Zyskind, with a deep background in privacy-preserving technologies and blockchain, co-authored the original Enigma whitepaper and serves as CEO of SCRT Labs, one of the core development teams behind the network. Kisagun brought extensive business experience, having founded multiple companies and previously worked as a business analyst. The project rebranded from Enigma to Secret Network following a community vote after its mainnet launch in February 2020.

The network addresses a critical vulnerability in many public blockchains where all transaction data is exposed. By contrast, Secret Network utilizes Trusted Execution Environments (TEEs), which act as a black box for computation, allowing network nodes to process encrypted data without accessing the raw information itself. This provides programmable privacy, a feature that allows developers to create applications for sectors like DeFi, NFTs, and secure data sharing, where confidentiality is paramount. For example, the platform supports Secret NFTs, which can have both private content and ownership. To facilitate interoperability, Secret Bridges connect the network to other blockchains like Ethereum, allowing assets from those chains to be wrapped into privacy-preserving "Secret Tokens" (SNIP-20s).

The business model is centered around its native utility token, SCRT, which is essential for the network's operation. Revenue is generated through transaction fees paid in SCRT for computations and data storage. Additionally, SCRT is used for network governance, allowing token holders to vote on proposals, and for staking. Node operators are required to stake SCRT to participate in the Delegated Proof-of-Stake (DPoS) consensus mechanism, securing the network and earning rewards in return. This economic model incentivizes participation from developers, users, and node operators, fostering a self-sustaining ecosystem. In January 2022, the network announced a $400 million ecosystem fund to accelerate adoption and development on the platform.