It was honestly just a matter of time, come to think of it, but Secret Network was the one to do it first. Secret Network stands as an open-source blockchain protocol, offering a way to integrate privacy features into 14 ERC-20 tokens and the Ethereum blockchain itself.
Turning ERC-20s Into Privacy
As its blog post explains, Secret Network had launched its Secret Ethereum Bridge today, launching it on the mainnet. This bridge allows for all ERC-20 token and ETH holders to create new programmable versions of their assets with, and this is the big one, privacy features included. Secret Network went as far as comparing these namesake secret tokens as being quite similar to something like Monero.
In its blog post, Secret described its tokens as having Zcash or Monero’s privacy with the programmability that ERC-20 tokens offer. According to said blog post, the only individuals capable of seeing Secret Token contracts are the owners of the contracts themselves, and the holders on the network with a viewing key. To anyone else, the interactions between contracts are fully encrypted.
Small Start With Big Plans
As it stands now, Secret Network stated that these privacy features will only be available to 14 ERC-20 tokens, at least for now. These tokens are YFI, ETH, BAND, UNI, LINK, COMP, SNX, KNC, AAVE, MKR, OCEAN, TUSD, USDT, as well as WBTC.
With this latest announcement, Secret Network’s broader plan comes to a step closer to fruition, as the protocol is planning to have public blockchains include these privacy features. Developers will be capable of deploying and building the “secret” smart contracts of the protocol through the use of encrypted outputs, inputs, and states.
It’s reported that these contracts will enable a blockchain to make use of decentralized apps’ private data, all the while not compromising the personal data of the users.
Plans For The Future
As it stands now, the protocol made it clear that it has plans to launch a bridge mining reward system, as well. This mining reward is planned to be launched in January of next year, where users will be capable of earning SCRT tokens should they keep their assets locked within the Secret Ethereum Bridge.
With Secret entering the privacy arena, in an unconventional way at that, it will be interesting to see what the world will make of it. It was made clear already that the governments of the world have a special disdain for privacy coins thanks to their prolific use within the criminal space.
A key example of Monero, in particular, is its prolific use in mining botnets to illegally mine Monero out of user PCs. As such, efforts have been made by the US government to crack the code to Monero and other privacy coins, and these efforts will doubtlessly be redirected to Secret in no.