Before learning more about Secret Network, we need to dig deeper into its source and mother project, Enigma. Founded in 2014, was initially a layer two-scale solution on Ethereum blockchain, which featured a particular type of smart contracts called privacy smart contracts. However, in Feb 2020, Enigma rebranded to Secret Network after a community vote. It doesn't mean that Secret Network continues Enigma, since Secret Network has its founder Tor Bair. Tor Bair was originally Enigma's head of growth and marketing. Secret Network has a nice blend of transparency and privacy, and it is the first blockchain to offer privacy smart contracts. These contracts are named "secret contracts," and every transaction made on the network is completely hidden, even from the validator nodes themselves.
The network's native token is SCRT. Don't get confused; SCRT is not a privacy coin, however. It means like BTC and ETH, all transactions of SCRT are visible and viewable by everyone. This token is intended to be the asset used on Secret Network's smart contracts, and even though the transactions are visible, they preserve privacy by default like MXR. Secret token holders are given access to a viewing key to prove ownership of their assets in secret contracts. It is to ensure regulatory compliance. This allows the Secret Network to address multiple use cases, which other blockchains are currently incapable of doing. DeFi apps that are resistant to front running are an example of this. Secret Network aims to be the central privacy hub for the entire cryptocurrency ecosystem, rather than being a project competing with other smart contract blockchains.
Secret Network was developed using the Cosmos SDK and used Tendermint proof-of-stake consensus mechanism. You can check out our article on Cosmos and ATOM token to learn more about what Cosmos does. Secret Network, in theory, can process 10,000 to 14,000 transactions per second by using Cosmos SDK. There's a downside to it since the network has a maximum of 50 validator nodes at any given time. These validators handle the secret contracts. These contracts achieve privacy by running inside Trusted Execution Environment or TEEs. TEEs are used in everything, from video games to smartphones. They're a place wherein computations can be performed on encrypted data. Also, validators on the network can have their stakes slashed for downtime and can even be banned if they attempt to manipulate the web.
The secret tokens used within secret contracts are made using the SNIP-20 standard, analogous to Ethereum's ERC-20 standard. To mint secret tokens, you deposit regular assets such as SCRT token into a smart contract to mint secret SCRT. All account balances transactions and transaction amounts are private when using secret tokens, andSCRT is just one of the many secret tokens you can mint. The Secret-Etherem bridge is dual-directional, meaning you can use SCRT on Ethereum as a wrapped ERC-20 token. This is where you can learn more about this bridge and how it works.
It's good to know that there was no ICO for SCRT token. Instead, a unique option was given to Enigma holders to burn ENG on Ethereum to mint an equal amount of SCRT on the Secret Network.
SCRT's Return-on-investment (ROI) over the past year was 2,619%, outperforming similar projects. Similar projects had a ROI of 913%, but the top 1500 projects grew by 36,145%. Its current market cap ranking is 97. Secret exceeded in 'Cosmos Ecosystem, Smart Contract Platform, Privacy Coins' categories which had 913% growth over the past year.
Its current liquidity score is 38% and during the past month, its market cap went from $150 million to more than $1.2 billion, showing an 87% increase. The significant and fast rank reduction and increase in market capitalization caused the Secret Network to boost its popularity, with 33% growth in Twitter followers and 45% growth in Telegram members in the past five months.
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