Data privacy is a function that is spreading further in the cryptographic space as evidenced by this news on Ethereum. The blockchain should soon experience a small revolution with the latest innovation from Secret Network. This has just announced the development of a bridge that would allow the use of ERC-20 tokens as privacy tokens. Holders could therefore create “secret” versions of their assets and use them to conduct confidential transactions.
ETH and 14 ERC-20 tokens will now have privacy functionality
It was in a blog post published on December 15th that Secret Network made the announcement of launch of a bridge to privacy on the Ethereum Mainnet (ETH). This was designed to create programmable versions of the ERC-20 tokens with a privacy feature. To start the adventure, 14 ERC-20 tokens in addition to ETH were chosen as the first beneficiaries of the benefits of this gateway. These include Yearn. Finance (YFI), Uniswap (UNI), Band (BAND), Compound (COMP), Chainlink (LINK), Aave (AAVE), Kyber (KNC), Synthetix (SNX), Ocean (OCEAN), Maker (MKR), Dai (DAI), Tether (USDT), True USD (TUSD), and wrapped Bitcoin (WBTC).
The innovation has also led Secret Network to compare these new tokens to privacy tokens like the Monero (XMR). ” Secret Tokens combine the programmability of the ERC-20 with the privacy of coins like Zcash or Monero. Interactions with secret token contracts are encrypted and can only be viewed by the owners or holders of their view key The blog post explains. After the launch of the bridge, an incentive period will be launched to users with the distribution of rewards based on the SCRT token.
Secret Defi: the next step
After this first phase, Secret Network intends to launch several other waves of bridges to provide privacy protection features to public channels. “As the first Layer 1 blockchain with privacy-preserving smart contracts, decentralized financial applications are only a small part of what is possible with Secret Network. And Ethereum is just a possible bridge “States the blog post.
In addition to the planned rewards for operating the bridge, Secret Network has planned toallocate up to 2 million SCRT to support the launch of Secret DeFi. Other applications of this bridge to privacy should be in NFTs and secret vaults for programmable access control. In each case, it will also be a question of designing secret tokens and using them in order to receive rewards in SCRT tokens.
The first and only privacy-compatible blockchain, Secret Network already guarantees users smart contracts with encrypted inputs, outputs and status. With this program, the network will provide the various players in the Ethereum ecosystem with autonomy on the issue of privacy protection.