Core Components and Token Economy
This section delves into the technical structure of the Secret Network, with a focus on 'Secret Contracts' that support encrypted inputs, outputs, and states. Unlike traditional blockchains that prioritize transparency, Secret Contracts protect privacy while executing decentralized applications (dApps). Additionally, this section analyzes the SNIP-20 token standard, which enhances the privacy features of token transactions, and the SCRT token, the network's native utility token used for governance, transaction fees, and staking, making it a core component of network operations.
Confidential contract
Confidential contracts are the core pillar of the Secret Network's privacy-centric architecture. Unlike traditional smart contracts, which are publicly visible by default, confidential contracts ensure that the data involved in computations remains private. This means that the inputs, outputs, and even the state of the contract are encrypted, making Secret Network an ideal platform for applications that require a high level of confidentiality.
The privacy of confidential contracts is mainly guaranteed through Trusted Execution Environments (TEEs). TEEs provide a secure area within the processor to ensure that the data being processed cannot be viewed by anyone outside the environment, including the executing node. This setting is crucial for maintaining data integrity and confidentiality.
The TEE technology ensures that while the logic of the contract is public, its specific details (such as input/output) are always kept confidential. This system can prevent external attacks and resist internal threats, setting a new standard for privacy protection in the blockchain field.
The principle of confidential contract operation
- EncryptionWhen the user submits data to the confidentiality contract, the data is automatically encrypted upon input and remains encrypted throughout the entire processing process.
- Processing in TEEsThe encrypted data is processed in the Trusted Execution Environment (TEEs) on Secret Network nodes. This ensures that no party, including node operators, can access or view the data content even when used in contracts.
- Authorize users to decryptThe output of the confidential contract can only be decrypted and viewed by users who are explicitly authorized through encryption keys, ensuring the confidentiality of the data.
The power of this system lies in its support for a variety of applications, from private financial transactions to secure voting systems, which have high requirements for confidentiality and security. By combining trusted execution environments (TEEs) with blockchain technology, Secret Network provides a unique solution that meets the transparency and security requirements of blockchain while strictly protecting the privacy needs of sensitive applications.
Economic models of SNIP-20 and SCRT tokens
SNIP-20 Token Standard
The SNIP-20 token standard on Secret Network is designed to enhance the privacy features of blockchain tokens, similar to Ethereum's ERC-20 standard, but with added advanced privacy features. This standard allows created tokens to encrypt and protect information such as balances, transaction amounts, and receiving addresses.
Key Features of SNIP-20 Token
Default Privacy Protection:
The SNIP-20 standard ensures that all interactions (including transfers and balance inquiries) require encrypted input and maintain an encrypted state, defaulting to keeping the user's financial activities private.View Key:
The SNIP-20 token adopts the 'viewing key' mechanism to provide controlled access to token information. This means that token holders can share their transaction details or balances with specific parties (such as auditors or compliance officers) without disclosing this information.Interoperability:
Through CosmWasm, SNIP-20 tokens are compatible with the Cosmos IBC architecture, supporting cross-chain interaction, thereby enhancing the availability of tokens in various blockchain networks.
SCRT Token
SCRT is the native utility token of Secret Network, which is crucial for the maintenance and operation of the network. SCRT is used to pay for gas fees on the network, compensate validators for their computation and transaction processing services. SCRT holders participate in network governance and can vote on proposals that affect network upgrades, parameter changes, and the introduction of new features. SCRT can be staked by validators or delegated by token holders to validators, providing security for the network's consensus mechanism and receiving staking rewards in return.
Governance and Staking Mechanism
The governance model of the Secret Network allows SCRT holders to influence the future development direction of the network by submitting proposals and voting, ensuring a community-driven development path. Through staking, SCRT provides security for the network, and validators and delegators have a direct interest in the integrity and performance of the network, thereby incentivizing them to maintain the stability and performance of the network.
Secret Bridges supports the conversion of non-Secret tokens (such as ETH or BNB) from other blockchains into Secret tokens compliant with the SNIP-20 standard. The converted tokens inherit the privacy features of the SNIP-20 standard, becoming encrypted assets with protected transaction data.
Token Distribution
In terms of token distribution, Secret Network allocates 44.12% of the tokens to the community, reflecting its commitment to decentralization and community-driven growth. 21.18% of the tokens are used to support ongoing development and project leadership, typically with a vesting period of 2 to 4 years, in line with team member employment or advisory agreements, ensuring long-term focus on project success. 17.65% is allocated to Enigma and its affiliated treasuries, reflecting both Enigma's core role in the project's origin and providing resources support for future strategic plans. 11.76% is allocated to the ecosystem fund pool, encouraging the development of privacy protection applications and promoting overall network growth. 4.71% of the tokens are used to support the inflation mechanism to maintain the sustainability of staking rewards. 0.59% is allocated to the foundation, supporting public resources and ecosystem maintenance. This token distribution strategy reflects a dual commitment to long-term development and the healthy growth of privacy technology ecosystem.
Core Components and Token Economy
This section delves into the technical structure of the Secret Network, with a focus on 'Secret Contracts' that support encrypted inputs, outputs, and states. Unlike traditional blockchains that prioritize transparency, Secret Contracts protect privacy while executing decentralized applications (dApps). Additionally, this section analyzes the SNIP-20 token standard, which enhances the privacy features of token transactions, and the SCRT token, the network's native utility token used for governance, transaction fees, and staking, making it a core component of network operations.
Confidential contract
Confidential contracts are the core pillar of the Secret Network's privacy-centric architecture. Unlike traditional smart contracts, which are publicly visible by default, confidential contracts ensure that the data involved in computations remains private. This means that the inputs, outputs, and even the state of the contract are encrypted, making Secret Network an ideal platform for applications that require a high level of confidentiality.
The privacy of confidential contracts is mainly guaranteed through Trusted Execution Environments (TEEs). TEEs provide a secure area within the processor to ensure that the data being processed cannot be viewed by anyone outside the environment, including the executing node. This setting is crucial for maintaining data integrity and confidentiality.
The TEE technology ensures that while the logic of the contract is public, its specific details (such as input/output) are always kept confidential. This system can prevent external attacks and resist internal threats, setting a new standard for privacy protection in the blockchain field.
The principle of confidential contract operation
- EncryptionWhen the user submits data to the confidentiality contract, the data is automatically encrypted upon input and remains encrypted throughout the entire processing process.
- Processing in TEEsThe encrypted data is processed in the Trusted Execution Environment (TEEs) on Secret Network nodes. This ensures that no party, including node operators, can access or view the data content even when used in contracts.
- Authorize users to decryptThe output of the confidential contract can only be decrypted and viewed by users who are explicitly authorized through encryption keys, ensuring the confidentiality of the data.
The power of this system lies in its support for a variety of applications, from private financial transactions to secure voting systems, which have high requirements for confidentiality and security. By combining trusted execution environments (TEEs) with blockchain technology, Secret Network provides a unique solution that meets the transparency and security requirements of blockchain while strictly protecting the privacy needs of sensitive applications.
Economic models of SNIP-20 and SCRT tokens
SNIP-20 Token Standard
The SNIP-20 token standard on Secret Network is designed to enhance the privacy features of blockchain tokens, similar to Ethereum's ERC-20 standard, but with added advanced privacy features. This standard allows created tokens to encrypt and protect information such as balances, transaction amounts, and receiving addresses.
Key Features of SNIP-20 Token
Default Privacy Protection:
The SNIP-20 standard ensures that all interactions (including transfers and balance inquiries) require encrypted input and maintain an encrypted state, defaulting to keeping the user's financial activities private.View Key:
The SNIP-20 token adopts the 'viewing key' mechanism to provide controlled access to token information. This means that token holders can share their transaction details or balances with specific parties (such as auditors or compliance officers) without disclosing this information.Interoperability:
Through CosmWasm, SNIP-20 tokens are compatible with the Cosmos IBC architecture, supporting cross-chain interaction, thereby enhancing the availability of tokens in various blockchain networks.
SCRT Token
SCRT is the native utility token of Secret Network, which is crucial for the maintenance and operation of the network. SCRT is used to pay for gas fees on the network, compensate validators for their computation and transaction processing services. SCRT holders participate in network governance and can vote on proposals that affect network upgrades, parameter changes, and the introduction of new features. SCRT can be staked by validators or delegated by token holders to validators, providing security for the network's consensus mechanism and receiving staking rewards in return.
Governance and Staking Mechanism
The governance model of the Secret Network allows SCRT holders to influence the future development direction of the network by submitting proposals and voting, ensuring a community-driven development path. Through staking, SCRT provides security for the network, and validators and delegators have a direct interest in the integrity and performance of the network, thereby incentivizing them to maintain the stability and performance of the network.
Secret Bridges supports the conversion of non-Secret tokens (such as ETH or BNB) from other blockchains into Secret tokens compliant with the SNIP-20 standard. The converted tokens inherit the privacy features of the SNIP-20 standard, becoming encrypted assets with protected transaction data.
Token Distribution
In terms of token distribution, Secret Network allocates 44.12% of the tokens to the community, reflecting its commitment to decentralization and community-driven growth. 21.18% of the tokens are used to support ongoing development and project leadership, typically with a vesting period of 2 to 4 years, in line with team member employment or advisory agreements, ensuring long-term focus on project success. 17.65% is allocated to Enigma and its affiliated treasuries, reflecting both Enigma's core role in the project's origin and providing resources support for future strategic plans. 11.76% is allocated to the ecosystem fund pool, encouraging the development of privacy protection applications and promoting overall network growth. 4.71% of the tokens are used to support the inflation mechanism to maintain the sustainability of staking rewards. 0.59% is allocated to the foundation, supporting public resources and ecosystem maintenance. This token distribution strategy reflects a dual commitment to long-term development and the healthy growth of privacy technology ecosystem.