🤫What is Secret Network?🤫
Secret Network is the first cryptocurrency blockchain to offer privacy preserving smart contracts called ‘secret contracts’. However, Secret Network’s native SCRT coin is *not* a privacy coin. Only the Secret Tokens used in the smart contracts preserve user privacy. Viewing keys make it possible to be compliant with regulations.
🛠How Does Secret Network Work?🛠
Secret Network was built using the Cosmos SDK. It uses Tendermint, which is a byzantine fault tolerant delegated proof of stake consensus mechanism Secret Contracts on Secret Network achieve privacy by running inside trusted execution environments or TEEs. These function like a black box wherein computations can be performed on encrypted data
💰SCRT Tokenomics 💰
Enigma token holders were given the option to burn ENG on Ethereum to mint an equivalent amount of SCRT on Secret While only 115 million ENG were burned, Secret Network minted an additional 45 million SCRT to fund various elements of the network.
📊Secret Network Potential📊
Secret Network already has a long laundry list of desired DeFi protocols including synthetic assets, lending, borrowing, and automated yield protocols like yearn finance The Secret Ethereum bridge already has over 50 million dollars of Ethereum assets locked, which is more than a fourth of the market cap of the SCRT coin
🌪What is Tornado Cash?🌪
Tornado Cash is a protocol that makes it possible to send private transactions on Ethereum
🛠How Does Tornado Cash Work?🛠
Ethereum assets are deposited into a smart contract. When this is done, a cryptographic proof (“receipt”) is given to the depositor, which allows them to claim whatever amount of crypto they deposited. A privacy technology used in Zcash called Zksnarks makes it possible to claim these coins using the proof without revealing which coins were initially deposited to get that proof, thus breaking the connection between sender and recipient
TORN is an ERC-20 token that is used to govern the Tornado Cash protocol. There was no ICO for the token Instead, vouchers to claim the tokens were airdropped to all Ethereum wallet addresses that deposited assets into the protocol prior to December 6th, 2020 This airdrop was designed to ensure an equitable distribution of tokens. The average user received over 23 000$USD in TORN. Only 500 thousand TORN were airdropped and TORN has a max supply of 10 million.
📊Tornado Cash Potential📊
TORN has a very small market cap, and the TVL locked on Tornado Cash suggests it could grow significantly However, it is unclear whether that TVL is just people farming TORN tokens. From a supply-demand perspective, there is a lot more supply of TORN that has yet to come on to the market and there is likely not enough demand to meet it
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.