Secret

Secret (SCRT): The Privacy-First Smart Contract Platform

Secret (SCRT) is a privacy-focused cryptocurrency that powers the Secret Network, a blockchain designed to provide data privacy for decentralized applications. Unlike many other public blockchains where all data is visible, Secret Network allows users and developers to build and use applications with encrypted data while maintaining the benefits of blockchain technology.

How Secret (SCRT) Works

Secret Network operates using a unique approach to blockchain technology that integrates privacy as a core feature. The network functions on a proof-of-stake consensus mechanism and utilizes "secret contracts" - a privacy-preserving version of smart contracts. These contracts enable computations over encrypted data, allowing users to interact with decentralized applications without revealing sensitive information.

At the heart of Secret Network's privacy technology are Trusted Execution Environments (TEEs), specifically Intel SGX, which create a secure enclave where data can be processed while remaining encrypted to outside observers. This means that even node operators cannot see the data being processed within the contracts they're running.

Staking and Validation in the Secret (SCRT) Network

SCRT offers staking opportunities for token holders, which serves a dual purpose: securing the network and earning rewards. Here's how it works:

Staking SCRT

Token holders can stake their SCRT by delegating them to validators. By staking, users contribute to network security and consensus, receiving rewards in return. The current staking rewards for SCRT typically range between 20-25% annually, though this rate can fluctuate based on network parameters and total staked supply.

When staking SCRT, tokens are subject to a 21-day unbonding period during which they cannot be transferred and do not earn rewards. This mechanism helps maintain network security by preventing rapid unstaking during volatile market conditions.

Mining and Validation

Secret Network does not support traditional mining. Instead, it uses a proof-of-stake system where validators (similar to miners in proof-of-work systems) are responsible for confirming transactions and adding new blocks to the blockchain.

To become a validator, a node operator must stake a significant amount of SCRT and maintain the required hardware specifications. Validators are chosen to produce blocks based on their proportional stake in the network, and they earn rewards from transaction fees and newly minted SCRT.

Utility of Secret (SCRT)

The SCRT token serves multiple purposes within the Secret Network ecosystem:

• Gas fees: SCRT is used to pay for transaction fees and computational resources when executing contracts on the network.
• Staking: As mentioned earlier, SCRT can be staked to secure the network and earn rewards.
• Governance: Token holders can vote on protocol upgrades and network parameters through on-chain governance proposals.
• Privacy features: SCRT enables private transactions and interactions with privacy-preserving applications built on Secret Network.

Secret (SCRT) Token Launch and Distribution

Secret Network originated as an evolution from the Enigma project. The SCRT token was launched in February 2020 following a token swap from the original ENG tokens (Enigma's Ethereum-based token).

Initial Distribution

The initial distribution of SCRT included several components:

• ENG token swap: Holders of the original Enigma (ENG) tokens could swap for SCRT at a 1:1 ratio.
• Community fund: A portion of tokens was allocated to fund future development and ecosystem growth.
• Team allocation: The founding team received a vested allocation of tokens.
• Genesis validators: Early network validators received allocations to bootstrap the network's security.

Current Supply Mechanics

SCRT has an inflationary supply model designed to incentivize staking. New tokens are minted with each block as rewards for validators and delegators. The inflation rate adjusts based on the percentage of total supply being staked, encouraging participation in network security.

Unique Features of Secret (SCRT)

Privacy by Default

What sets Secret Network apart from other smart contract platforms is its native privacy features. While blockchains like Ethereum or Solana execute smart contracts with all data visible on-chain, Secret Network keeps this data encrypted, allowing for confidential DeFi, NFTs with hidden attributes, and privacy-preserving governance.

Interoperability

Secret Network is built using the Cosmos SDK and connected to the Cosmos ecosystem through IBC (Inter-Blockchain Communication). This allows SCRT and Secret tokens to move seamlessly between different blockchains in the Cosmos ecosystem. Additionally, Secret Network has bridges to other major blockchains including Ethereum, Binance Smart Chain, and others.

Trading Secret (SCRT)

Anyone can trade Secret (SCRT) on various cryptocurrency exchanges using the automated trading bot of Cryptohopper. This powerful tool allows traders to implement sophisticated strategies for buying and selling SCRT without having to constantly monitor the markets. Cryptohopper's automated system can help optimize your SCRT trading experience through features like technical analysis, trailing stops, and portfolio management.

Whether you're interested in SCRT as a privacy-focused investment or want to participate in the Secret Network ecosystem, Cryptohopper provides the tools needed to trade this promising cryptocurrency efficiently and effectively.