Secret Network was previously a second-layer privacy solution built on Ethereum, formerly known as "Enigma" built in 2017. Due to the scalability issues of Ethereum, the current technology stack migrates to a first-layer solution built using the Cosmos SDK, utilizing Tendermint's Byzantine Fault Tolerant consensus algorithm Proof of Stake (PoS).

The vision of Secret Network is Universal Finance (unlimited finance). In the world of Universal Finance, DeFi is more secure, private and fair, and can realize cross-chain interoperability and open up the value transfer problem of DeFi.

At present, most of the mainstream blockchains are completely open to the public. For example, operations such as user transfers and contract interactions on Ethereum can be queried by anyone. Of course, there are also privacy-focused anonymous blockchain systems such as Monero and Zcash, but these are mainly used for private transfers of encrypted assets, and cannot implement smart contracts and complex on-chain applications. As people's demand for privacy information protection increases, how the blockchain system protects user privacy issues and improves privacy protection capabilities has become a key research direction for many blockchain developers. In this context, the privacy public chain has great potential.

Secret Network is committed to creating a privacy-first blockchain, based on the Cosmos SDK / Tendermint, which belongs to the public chain project in the Cosmos ecosystem. It adopts the trusted execution environment technology (TEE) commonly used in computers, so that nodes can only be encrypted. Computations are performed on the data without touching the unencrypted raw data. In other words, on the Secret Network, the input, output, and status of smart contracts are anonymous, and miners, developers, and chain observers cannot query and use data at will. Users can choose to authorize data to smart contract calls when necessary. With the help of these features, anonymous lending, transactions, auctions and other financial behaviors can be realized, creating a new DeFi ecosystem, which is more in line with the connotation of Web 3.0. To put it simply, Secret Network can not only implement smart contracts and DApps like Ethereum, but also protect data privacy like Monero. In addition, because it is based on the Cosmos SDK, it can also interact with the IBC protocol to achieve cross-chain. Technically, Secret Network adopts the PoS consensus mechanism, the block time is 6 seconds, and the theoretical TPS upper limit is 1,000. Not compatible with EVM, the virtual machine used is CosmWasm (that is, the WASM virtual machine started in the Cosmos SDK).

Token name: SCRT token distribution: 44.12% for the community, 21.18% for the team, 17.65% for enigma and its affiliated treasury, 11.76% for the ecological pool, 0.59% for the foundation, and 4.71% for inflation. There is no upper limit on the supply of SCRT tokens, and the annual inflation rate fluctuates between 7% and 15%.

As a network transaction fee; 2. A node pledge reward for node merchants and clients; 3. As a governance token, it has voting rights for proposals.

On Secret Network, the input, output, and status of smart contracts are all anonymous, so that anonymous lending, transactions, auctions and other financial behaviors can be realized, and it is expected to truly create a new DeFi ecosystem. In addition to DeFi, future data transactions, health data, game industry and other data can be widely used on the privacy public chain. At the same time, users can also generate viewing keys and selectively disclose their data to designated parties, which makes it possible to meet regulatory requirements. 2. Secret Network is decentralized, so governance decisions are made collectively through community votes. The network is run by delegators and validators who propose blocks according to the delegated proof-of-stake model. Node operators are rewarded with SCRT for proposing new blocks. Users pay SCRT as a fee to the network to have their transactions included. 3. Secret Network is built using Cosmos SDK and uses Tendermint to reach consensus. Enigma is a company that launches privacy-preserving applications and encrypted computing services. As part of this work, Enigma is a core contributor to Secret Network. 4. To achieve data privacy, Secret Network relies on a combination of key management and encryption protocols, as well as Trusted Execution Environment (TEE) technology. 5. The code for secret contracts is always publicly deployed on-chain so that users and developers know exactly what code will be executed on the data they submit. This is important: users cannot trust their encrypted data without knowing what that code does. However, the submitted data is encrypted so that it cannot be read by the developers, anyone observing the chain, or anyone running a node. If the behavior of the code is also trustworthy (which is achievable because it is recorded on-chain), users of secret contracts gain strong privacy guarantees.

Secret Network is a Layer 1 privacy public chain built based on the Cosmos SDK and Tendermint core consensus mechanism. Through the IBC protocol, it can achieve interoperability with other Cosmos SDK application chains that have opened the IBC interface. 2. Secret Network mainly realizes data privacy through the following main components: encrypted smart contract (Secret Contract) and trusted execution environment (TEE: Trusted Execution Environments).

Secret Network is the only mainnet blockchain with privacy-preserving smart contracts because they use public data by default. 2. Secret Network can also interoperate with other chains, support native tokens and NFT, and allow private calculations on encrypted data. It is the privacy center of the entire blockchain ecosystem, while enabling Secret Network to maintain a higher level of compliance. 3. In addition, Secret Network has built many available products on the network, including SecretSwap, Ethereum Bridge, Secret Auctions, Token Factory, etc. 4. Secret Network also has a very large community, with more than 5,000 individual representatives around the world, 12,000 accounts (excluding exchanges), more than 70,000 Twitter fans, more than 10,000 Discord users and a huge support Secret proxy community.

Oasis Network is similar to Secret Network. It is positioned as a Layer 1 privacy public chain and will be launched on the main network in November 2020. The difference is that Oasis Network can achieve EVM compatibility.

Sienna is built on top of Secret Network. Compared with other public chains, Secret has been online with programmable privacy since September 2020. Secret is not only a transaction mixer, but the combination of Ethereum + Monero + Cosmos is the Secret Network.

The rapid rise of Oasis Network has brought fierce competitive pressure to Secret; 2. Non-EVM compatibility is difficult to attract ecological migration on Ethereum; 3. At present, the mining incentive mechanism is mainly used to attract funds to lock up positions, and users’ concerns about privacy applications Potential demand has not been fully tapped.

On the Secret Network, regular smart contracts become "Secret Contracts," meaning they can use encrypted inputs, outputs, and state. It also means that when a user interacts with a contract, no one can see what that user is working on: including the nodes that are performing the calculations. The Secret Network is attack-resistant because miners cannot punish users in this way. This preserves more usage value for the user. SecretSwap is based on the Secret contract, so when users send transactions to SecretSwap, no one else can see them in advance, protecting user privacy and preventing front-running transactions. It works the same way as Uniswap or SushiSwap, but at a lower cost and with greater user security. Tokens purchased by users on SecretSwap can be privately transferred on Secret Network and used in other Secret Apps, or sent back to the native chain (including Ethereum) through the bridge. Like all other secret contracts, the network fees for interacting with SecretSwap are paid in SCRT. With more and more bridges in the Secret ecosystem (including integration with IBC), SecretSwap will become a cross-chain, privacy-first, leading anti-liquidity hub.