- 8 Mar, 23
Secret (SCRT) 101: Experience the Magic of Privacy
Many crypto enthusiasts see the “transparent” nature of the blockchain as a defining and integral feature of the technology. However, Secret Network (SCRT) and Quentin Tarantino beg to differ. In November 2021, Tarantino created 7 NFTs on SCRT consisting of snippets from the 1994 film “Pulp Fiction”. Each NFT, which was put up for sale on OpenSea, had a “secret” content that could only be seen by the owner.
Tarantino had added quotes and previously unheard commentaries to these NFTs. Following the sales, the famous film producer drew attention to the project with the statement, “Secret Network (SCRT) and the NFTs on the network are connecting fans and artists”. After these remarks, the project managed to attract a large user base. But what is SCRT, and does it hold promise for the future? Find the answers to all the questions that investors are curious about in this article of Zatrun.com.
Table of Contents
What is Secret (SCRT) and How Does It Work?
According to Secret, while the blockchain is open and accessible, it does not fully realise the goals of Web3. The project claims that due to blockchains that do not consider privacy, crypto use will be limited to the mainstream. According to the team, institutional investors want to know how their data is used and shared. When they know this, they will feel comfortable adopting blockchain technology, and the project aims to do just that. The SCRT coin, released to the market by the team, serves its users as the first privacy-centric blockchain crypto.
The Secret project uses trusted execution environments to enable secure private computation on encrypted data. All data added to the platform is encrypted, and users utilise viewing keys to gain access to this sensitive data. A person who uploads data to the platform can also control who the data is shared with. Just like in smart contracts on Ethereum, Secret allows for encrypted inputs and outputs, which ensures that data owned by individuals in smart contracts is no longer public.
However, the ecosystem also focuses on decentralised finance, also known as DeFi. Secret Finance allows individuals to make financial transactions while ensuring that their sensitive data is protected. For example, account balances and wallet activity are hidden with this service, making it impossible for others to monitor them. However, users must hold SCRT coin to benefit from any feature of the project. Now let’s move on to SCRT.
What is SCRT Crypto and What is It Used For?
SCRT is the native token of the Secret Network. Users need to hold SCRT to gain access to applications within the ecosystem. With this cryptocurrency, users gain the advantage of transacting completely anonymously. They can also participate in governing the platform by using it to vote. The blockchain, which operates on a proof-of-stake mechanism, makes it possible for users to stake SCRT coins. Staking SCRT provides token holders with the opportunity to earn passive income.
The network also supports many new-generation blockchain technologies such as NFTs and DeFi. In fact, there are many privacy-focused cryptocurrencies such as Zcash and Monero, which offer similar services in the market. However, Secret’s backing by prominent figures and its more innovative approach compared to most popular networks sets it apart from others.
Is It a Good Investment?
Privacy is a double-edged sword. The network is heavily criticised due to illicit activities such as money laundering and market manipulation. SCRT Coin may overcome these criticisms because it protects users from data mining activities, which are increasingly being adopted by technology monopolies. However, privacy is not always a good thing. There are now fewer ways to see wallet activity, and it is even harder to know if whales are working together to increase or decrease the price of a specific cryptocurrency.
Regardless of the debate on whether it affects the market positively or negatively, Secret is moving towards becoming a large-scale project. SCRT, currently the 241st largest cryptocurrency, is traded at $0.70 with a market cap of $115.4 million. The asset reached an all-time high of $10 in November 2021, but has since declined. However, the decline that occurred in the past year was independent of the project, as 2022 was a tough year for Bitcoin and all altcoins due to macroeconomic factors negatively affecting the market.