Secret Network Gets Financial Support From Industry Leaders For Web 3 Financial Privacy
In the real world on which the global economy relies & operates, every individual is concerned about the security & privacy of their personal financial transactions or activities. To avoid any type of financial threat, we are not supposed to uncover or reveal every aspect of our financial activities to the public. We want a secured financial platform with the ability to select parties that can access our confidential data along with certain conditions, for example, our credit history or bank transactions, etc. The issue with the blockchain world is that this financial protection is not available to us in reality. This has brought many terrible maltreatments, such as the act of “front running” where a foul person can exploit you immediately after noticing your transaction on a public blockchain. The necessary step is to introduce a quality infrastructure improvement to resolve this issue, for, without it, the crypto "Shangri-La" of "Defi" (decentralized Finance) will never be able to overcome the threats.
Thereby it is important that some of the leading & most popular organizations in the domain of blockchain financing are investing equivalent of $11.5 million into SCRT, the local coin of the Secret Network blockchain. The investment was driven by Arrington Capital and Blocktower Capital and also involves Spartan Group and Skynet Trading.
Talking about past financial backers in Secret, it includes Outlier Ventures, Fenbushi Capital, and Hashed along with Secret Foundation and Enigma MPC, and node operators such as Figment and Staked.
According to Tor Bair, founder of Secret Foundation, “The addition of these important and experienced associates to the Secret ecosystem denotes an essential inflection point for Secret network as we focus on accelerating and supporting our rapidly-developing application layer.“
Secret, we used to be known as Enigma before a pivot, professes to have been the first privacy-first smart contract platform. (The first version of this Blockchain was known as the “Enigma Mainnet” but this marking was changed to Secret network utilizing administration vote in summer 2020). Earlier, Singapore-based multinational banking entity DBS and Standard Chartered launched Blockchain Trade Finance Platform to control Trade Finance Fraud.
So far in 2021, several native applications were launched by the Secret network including SecretSwap, a “front-running resistant,” cross-chain AMM with security measures. It is also developing Secret NFTs.
So, why is this important? Why should we think about it? It is just because in the absence of privacy, Defi is profoundly far-fetched to go standard.
Without ensuring privacy in transactions, the conventional economic system will not try taking any notifications of crypto and blockchain, outside of taking note of whether the cost of Bitcoin increases or decreases.
As a matter of fact, Secret is not the solitary player handling this region. It is operating in a similar field as blockchain activities like Phala (not yet on mainnet, and based on Polkadot), Oasis, and Aleo, which recently got funds via Andreessen Horowitz.
The similarity that all these projects share is this race towards, known as the Web3 “application privacy” space. Indeed, they are attempting to reproduce the type of financial security that we all have generally expected from the conventional financial system, but which stays tricky in the blockchain industry. Earlier, HD bank became the first bank in Vietnam to join HSBC, StanChart-backed Contour trade finance blockchain.
Notwithstanding, this methodology should not be mistaken for privacy coins like Monero and Zcash. These are coins and they are not similar at all to the above-named projects, which are focusing on what’s known as “programmable protection”.
Bair explained, “Transactional security (via security coins) simply implies details of transactions from other parties - a restricted type of privacy. Efficient contract privacy - what we call ‘programmable security’ - is significantly more influential data, enabling developers to create complicated decentralized and permissionless applications that also protect the information security, with enormous consequences for Web3 security and convenience. As a similarity, imagine attempting to create a decentralized Facebook. .Ordinary blockchains uncover all information naturally, the worst result for user privacy and security. Only efficient contract privacy enables you to develop these types of complicated applications without bargaining the client experience and undermining their safety. ”
Front-running is often portrayed as getting a transaction first in a line before a realized upcoming transaction shows up. Bair claims that Secret protects against it at the conventional level as all connections with smart contracts are encrypted and cannot be accessed even by the organization validators, “So all Defi applications created on Secret network are front-running resistant by default.”
All things considered, Secret is still required to compete with a plethora of security projects prevailing -for example, Ethereum, such as Automata. The Secret Network is an independent blockchain and still needs a developer community to be effective, versus Ethereum and Polkadot, which technically have a great start, of sorts. However, these blockchains are public naturally. So Secret’s essential area of focus on the problem of privacy may yet make Secret a significant part in this domain.
According to Bair, “Only programmable security can provide users and developers this level of control in the DeFi world. In the absence of programmable security, DeFi will never be able to achieve huge adoption outside of the absolutely theoretical movement. Secret Network means to turn into the establishment for new kinds of DeFi applications that efficiently protect users while also enabling conventional institutions to participate safely, with protections for sensitive information. Also, blockchain is not required to have thousands of developers to prevail temporarily - they need the right designers who can develop the early basic applications. “
Besides, Secret has in its support the fact that because of the entire idea of decentralization of the blockchain, the space is not close to as much a “winner-take-all” environment as the overall internet has become because of the development of the huge Big Tech stages - that would be counter to the point of decentralization. As Bair explained, “The vision of Secret is to become an information security hub for all the public blockchains, working together more than competing with networks like Ethereum (to which we as of now have a live bridge with more than $100 million in assets locked)”
The secret network claims that it was one of the first blockchains to highlight security-safeguarding smart contracts, which it introduced on mainnet in September 2020. It explained this means all decentralized applications developed on Secret network have information privacy naturally. The Secret Network blockchain itself relies on Cosmos SDK/Tendermint, providing its own independent consensus, on-chain governance, and highlights like cutting and delegation. It is secured by the native coin Secret (SCRT), which should be marked by network validators and is utilized for transaction and computation charges as well as governance, as per the foundation.
Remarking on the investment, Michael Arrington, founder of Arrington Capital explained, “Secret is the first blockchain ecosystem that prioritizes privacy. Financial privacy is essential to individual freedom, and Arrington Capital has long been focused on financial security and censorship resistance. The quick expansion of decentralized finance makes arrangements like Secret Network a timely addition to the DeFi ecosystem.” (Arrington Capital was set up by Arrington, who was also earlier the founder of TechCrunch, but who has no contribution in the title these days.)
Jamie Burke, founder of Outlier Ventures in the U.K. and a Secret backer explained, “Privacy holds great importance for security and adoption of Web3, from DeFi to NFTs and beyond. The secret network attracts new and one of its kind privacy opportunities to space, and as consequence, we believe it will be primary to the upcoming generation of successful Web3 applications. ”
The secret is likewise getting support from DeFi players, for example, the Sienna Network. Monty Munford, Chief Evangelist and Core Contributor to the privacy DeFi company explained, “Among all the networks in the world, we selected Secret as it was a yes-yes-yes brainer. They get privacy and we understand DeFi; it is a perfect match.”