Secret Network

The hardware-based privacy technology at the network's foundation. Each validator node runs a secure, isolated enclave (like Intel SGX) that acts as a black box for computation. Data enters encrypted, is processed inside the TEE, and only authorized results are output. This ensures data confidentiality and integrity, even if the node operator is malicious. The network's consensus enforces that all validators must use TEEs.

All sensitive data stored on-chain is encrypted. Users control access through a unique cryptographic system:

• Transaction-level encryption: Inputs to Secret Contracts are encrypted to the contract's public key.
• Viewing Keys: Users can generate and share specific keys to grant selective, read-only access to their private data (e.g., viewing private NFT metadata or wallet balances) to third parties, enabling compliant and user-controlled privacy.

Secret Network is IBC-enabled, allowing its private smart contracts to interact with assets and data from other Cosmos-based chains and beyond. This creates interchain privacy, where assets like ATOM or OSMO can be transferred into Secret Network, transformed into privacy-preserving variants (e.g., sATOM), used in confidential DeFi applications, and then bridged back out. It acts as a privacy hub for the broader ecosystem.

Unlike many privacy solutions, Secret Network operates as a permissionless, proof-of-stake blockchain. Anyone can run a validator node (with the required TEE hardware), stake the native SCRT token, and participate in governance. This decentralization is critical for censorship resistance and security, distinguishing it from centralized mixing services or trusted setups used by some privacy coins.

The technology enables a new class of Web3 applications:

• Private DeFi: Front-running resistant DEXs, confidential lending with private collateral.
• Private NFTs & Gaming: Hidden metadata, traits, and in-game assets.
• Private Governance & DAOs: Confidential voting and treasury management.
• Private Data Oracles & Compute: Processing sensitive real-world data (credit scores, medical data) on-chain for use in contracts.

SCRT is the native utility and governance token of Secret Network. Its primary functions are:

• Gas Fees: Paying for computation and storage on the network.
• Staking: Used to secure the Proof-of-Stake (PoS) network via validators.
• Governance: SCRT holders vote on-chain to decide protocol upgrades, treasury spending, and network parameters through the Secret Network DAO.

A suite of applications that bring confidentiality to decentralized finance. Key examples include:

• Secret Swap: An AMM DEX where trade amounts and liquidity provider positions are kept private.
• Sienna Network: A platform for private lending, borrowing, and yield generation.
• Shade Protocol: A suite of private DeFi products, including the algorithmic stablecoin SILK. These tools protect against front-running and position sniping.

Extends privacy to digital assets and data. Secret NFTs can have encrypted metadata and traits viewable only by the owner or permitted parties. This enables:

• Private art galleries and collectibles.
• Confidential medical or identity records stored on-chain.
• Gaming assets with hidden attributes. The network also supports private data storage and computation through services like Secret Vault.

Secret Network is a Cosmos SDK chain and a core member of the IBC ecosystem. This allows:

• Cross-chain privacy: Users can transfer assets from chains like Cosmos Hub and Osmosis to Secret Network, where they become privacy coins (e.g., sSCRT, sATOM).
• Interoperability: Secret Contracts can interact with and provide privacy services to other IBC-connected chains, acting as a privacy hub for the Cosmos ecosystem.

The ecosystem supports builders through specialized tools and funding.

• Development Framework: The Secret Toolkit and CosmWasm-based environment for building Secret Contracts in Rust.
• Grants Program: The Secret Network Foundation and DAO fund projects through ecosystem grants.
• Privacy-as-a-Service: Developers from other chains can leverage Secret Network's privacy features via IBC and custom bridges.

Validator nodes must operate specialized hardware with TEE support. Key security responsibilities include:

• Secure provisioning: Correctly initializing the TEE with the network's attested software.
• Key management: Safeguarding the node's consensus and encryption keys.
• Physical security: Protecting against physical attacks that could compromise the TEE's isolated memory. A compromised validator can lead to slashing or, in a worst-case scenario, a leak of private state if the TEE itself is breached.

Unlike transparent chains, Secret Network encrypts contract state and input/output data. This creates a need-to-know data model. Security considerations include:

• Encrypted mempool: Transactions are encrypted before broadcast to protect user data from front-running based on content.
• In-enclave decryption: Data is only decrypted inside the secure TEE.
• Contract developer responsibility: Developers must correctly implement privacy logic; bugs can still leak data through improper access controls or output.

Secret Network's security model incorporates both blockchain and trusted hardware assumptions:

• Byzantine Fault Tolerance: Requires >2/3 of validators by stake to be honest and correct (standard for Cosmos SDK chains).
• TEE Trust: Assumes the TEE hardware (Intel SGX) is secure and its remote attestation is valid. The network is vulnerable to large-scale TEE compromises (e.g., a critical CPU vulnerability) that could break privacy guarantees, though ledger integrity would remain.

Users interact with private contracts using a viewing key system. This is a symmetric key shared between the user and a contract to decrypt specific data. Critical user security practices include:

• Viewing key custody: Users must securely store their viewing keys; losing them means losing access to their private data history.
• Selective disclosure: Viewing keys are per-contract, allowing users to reveal data to specific dApps without exposing their entire transaction history.

Given the complexity of private smart contracts and TEE integration, rigorous security auditing is paramount. The network's core technology stack and major contracts undergo:

• Code audits: Independent reviews of the TEE module, cosmwasm integration, and contract code.
• Attestation verification: Continuous on-chain verification of validator TEE attestations.
• Formal verification: Applied to critical components to mathematically prove the correctness of privacy-preserving algorithms.