Secret: A Programmable Privacy Smart Contract Platform

Hello friends! Today I’d like to introduce you to a very interesting blockchain project called Secret Network. You may have seen it referred to as SIE, but today we’ll focus on the more widely known Secret Network, whose native token is SCRT. You can think of it as a “secret garden” in the blockchain world, dedicated to protecting your digital privacy.

What is Secret

Secret Network is a unique blockchain project—you can think of it as the first “privacy by default” blockchain. This means that on this network, your data and transaction information are inherently private, like whispering secrets to a friend: only you two know the content, and no one else can hear.

It supports a special kind of “secret smart contract” (Secret Contracts), which can compute on encrypted data without revealing the data itself. Imagine being able to transact on a public ledger, but the transaction amount, sender, and receiver are all encrypted—only those with the “key” can see the details. It’s like sending a letter: the address is on the envelope for all to see, but only the recipient can open and read the contents inside.

Secret Network’s target users are those who want to operate on blockchain but don’t want everyone to see all their data. For example, you might want to participate in a decentralized finance (DeFi) project but don’t want others to know your investment strategy or asset size; or you’re playing an on-chain game and don’t want developers or other players to see your hand or game data, preventing cheating.

Project Vision and Value Proposition

Secret Network’s core vision is to become the “confidential computing hub” for Web3 and artificial intelligence (AI). Simply put, it aims to provide privacy-preserving computation for the entire decentralized internet. They believe that while blockchain brings decentralization and transparency, this transparency can be a barrier in many scenarios, limiting the development of decentralized applications (dApps), such as in finance, gaming, and healthcare.

The core problem Secret Network wants to solve is: how to achieve data privacy protection under blockchain’s public and transparent nature. Traditional blockchains are like transparent glass houses—everything inside is visible. Secret Network builds “dark rooms” inside the glass house, where you can handle your secrets; outsiders can see the rooms exist but not what happens inside.

Compared to similar projects, Secret Network’s main differentiator is that it’s the first blockchain to implement “privacy by default” smart contracts. This means privacy isn’t an optional feature—it’s part of the core architecture. It’s also committed to expanding privacy computing to other blockchain ecosystems, such as Ethereum Virtual Machine (EVM) compatible chains, and into the AI field, becoming a bridge between private and public blockchains.

Technical Features

Secret Network is built on a solid technical foundation: the Cosmos SDK. Cosmos SDK is like a Lego kit, allowing developers to quickly build their own blockchains, which can communicate with each other.

Consensus Mechanism

It uses the Delegated Proof of Stake (DPoS) mechanism, combined with the Tendermint BFT consensus algorithm. Simply put, DPoS is like a democratic voting system: token holders vote to elect representatives (validators), who are responsible for packaging transactions and maintaining network security. Tendermint BFT ensures these representatives reach consensus efficiently and securely—even if a few fail, the network keeps running.

Privacy Technology: Trusted Execution Environment (TEE)

One of Secret Network’s core privacy technologies is the Trusted Execution Environment (TEE), such as Intel’s SGX technology. You can think of TEE as a “safe” inside a computer chip—only authorized programs can run inside, and the data and computation are fully isolated and encrypted, even from the computer’s owner. Secret Network uses TEE to execute secret smart contracts, ensuring contract data remains encrypted during computation and is invisible to anyone (including node operators).

Interoperability

Because it’s built on Cosmos SDK, Secret Network can use the Cosmos IBC protocol to interoperate with other blockchains. It’s like different countries having a unified “interpreter,” making cross-chain asset transfers and information exchange easy—and these exchanges can also be private. Additionally, it’s actively expanding interoperability with Ethereum Virtual Machine (EVM) compatible chains.

Tokenomics

Token Basics

Secret Network’s native token is SCRT. It’s designed to incentivize network participants and ensure security and decentralization.

• Issuance Mechanism: SCRT is an inflationary token with no maximum supply cap. This means its supply increases over time.


• Inflation Rate: SCRT’s inflation rate is variable, ranging from 7% to 15%. The rate adjusts based on the proportion of staked (bonded) SCRT to total supply, aiming for a 67% staking rate. If staking exceeds 67%, inflation drops to a minimum of 7%.


• Current and Future Circulation: As of now, SCRT’s circulating supply is about 211 million, with a total supply of about 281 million. (Note: Other sources mention a circulating supply of about 70 million and total supply of about 190 million; data may vary, please refer to official latest figures.)

Token Utility

SCRT tokens play multiple roles in the Secret Network ecosystem:

• Paying Transaction Fees (Gas Fee): Like Gas on Ethereum, users pay SCRT as fees for transactions or smart contract execution on Secret Network.


• Staking: Users can stake SCRT tokens to validators, helping secure the network and earning staking rewards. It’s like depositing money in a bank to earn interest, while also contributing to network security.


• Governance: SCRT holders can participate in network governance, voting on important proposals to decide the network’s future direction, such as protocol upgrades or parameter adjustments. Each staked SCRT represents one vote.


• Running Nodes: To become a Secret Network validator, you need to stake SCRT.

Besides SCRT, Secret Network also has the concept of “secret tokens” (Secret Tokens, sometimes referred to as sSCRT), which are privacy-protected tokens on Secret Network. They can represent assets from other chains and enable private transactions on Secret Network.

Team, Governance, and Funding

Core Team

Secret Network’s core development team is SCRT Labs. Their mission is to accelerate the adoption of privacy-first decentralized technology. SCRT Labs’ CEO is Alex Zaidelson, who succeeded founder Guy Zyskind. The team includes C-level executives and software engineers in various roles.

Governance Mechanism

Secret Network uses a decentralized governance model: SCRT token holders can vote on network decisions. The governance process is as follows:

• Proposal: Any SCRT holder can submit a proposal, but must lock 1000 SCRT as a deposit.


• Voting: The voting period for proposals is usually 7 days. Each staked SCRT represents one vote.


• Passing Conditions: Proposals require a 50% quorum and a simple majority of staked SCRT voting in favor to pass. If rejected, the locked SCRT may be burned.

Funding and Foundation

The Secret Network Foundation (SNF) oversees Secret Network operations and works closely with SCRT Labs to drive network development. The foundation brings in Web3 experts as board members to provide strategic guidance for the project.

Roadmap

Secret Network’s development roadmap focuses on three core areas: confidential computing hub, network infrastructure, and community.

Key Historical Milestones (Partial)

• February 2020: Secret Network mainnet launched, becoming the first blockchain to offer privacy smart contracts.


• August 2021: Monero Secret Bridge launched on mainnet, enabling cross-chain privacy connection with Monero.


• 2024: Focused on enhancing interoperability with Ethereum Virtual Machine (EVM) compatible chains and expanding confidential computing capabilities.

Future Plans (2024-2025)

• Confidential Computing Hub: Aim to provide decentralized confidential computing (DeCC) for all Web3.




• Secret on EVM: Bring Secret Network’s privacy technology to the EVM ecosystem.


• EVM on Secret: Make EVM users and developers feel at home on Secret Network.


• Constellation Infrastructure: Further develop interoperability infrastructure.




• Network Infrastructure: Continuously improve network security, scalability, and decentralization.




• Cosmos SDK Upgrade: Upgrade to the latest Cosmos SDK version, introducing new features and improvements.


• New WASM Engine: Plan to deploy advanced WASM engines (such as Wasmer and Wasmtime) in 2025 to significantly boost performance.


• EVM Compatibility: After solving scalability issues, plan to achieve full EVM support in 2025.




• Secret AI: Building a new AI infrastructure layer, leveraging trusted execution environments to provide large-scale GPU work for large language models (LLM), enabling privacy-preserving AI computation.

Common Risk Reminders

Investing in any cryptocurrency project carries risks, and Secret Network is no exception. Here are some common risk points:

• Technical and Security Risks:




• TEE Vulnerabilities: Although TEE offers strong security, any technology may have potential vulnerabilities.


• Cross-chain Bridge Security: Cross-chain bridges are key infrastructure connecting blockchains, but have seen security incidents (e.g., Ronin bridge attack), reminding us of cross-chain risks.


• Smart Contract Risks: Smart contract code may have bugs, leading to asset loss.




• Economic Risks:




• Inflation Dilution: SCRT’s inflation mechanism means if you don’t stake, your token holdings may be diluted.


• Market Volatility: Crypto markets are highly volatile; SCRT’s price may be affected by market sentiment, macroeconomics, and other factors.




• Compliance and Operational Risks:




• Regulatory Uncertainty: Global crypto regulations are still evolving; future policy changes may impact the project.


• Increasing Competition: As privacy computing develops, more competitors may emerge.

Remember, the above is not investment advice—please do thorough personal research before investing.

Verification Checklist

If you want to learn more about Secret Network, check out these resources:

• Official Website: scrt.network


• Whitepaper: You can find Secret Network’s whitepaper on sites like whitepaper.io.


• Block Explorer: Track on-chain activity and transactions. Mintscan is being replaced by zonescan.io.


• GitHub Activity: Check codebase update frequency and contributor count, e.g., scrtlabs/SecretNetwork.


• Community: Join their Discord, Telegram, or Twitter to interact with community members and developers.

Project Summary

Secret Network is a pioneering project dedicated to privacy protection in the blockchain world. By combining Cosmos SDK, DPoS consensus, and Trusted Execution Environment (TEE) technology, it has built a platform capable of running “secret smart contracts,” allowing users to enjoy blockchain decentralization while protecting their data privacy.

Its native token SCRT is not only used for transaction fees, but is also key for network security staking and community governance. The project team, SCRT Labs, and its foundation are actively advancing technology and ecosystem development, including enhancing interoperability with other blockchains and exploring privacy computing applications in AI.

Although Secret Network is innovative in privacy, like all emerging technologies, it faces risks such as technical security, market volatility, and regulatory uncertainty. For those interested in privacy protection and blockchain technology, Secret Network offers a unique perspective worth exploring. Remember, this is not investment advice—please do your own research for more details.