‘Secret’ bridge turns ERC-20 tokens into privacy coins

An open-source blockchain protocol called the Secret Network is now offering privacy features for the Ethereum blockchain and 14 ERC-20 tokens.

According to a Secret Network blog post, the protocol launched its Secret Ethereum Bridge on the mainnet today, which is designed to allow Ether (ETH) and all ERC-20 token holders to create programmable versions of their assets with privacy features. The Secret Network compared these “secret” tokens to privacy coins like Monero (XMR):

“Secret Tokens combine the programmability of ERC-20s with the privacy of coins like Zcash or Monero. Interactions with Secret Token contracts are encrypted, viewable only to address owners or holders of their viewing key.”

Secret Network said that it would initially offer these privacy features to 14 ERC-20 tokens, including ETH, 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 latest Ethereum announcement is part of a broader plan from the Secret Network to bring privacy features to public blockchains. Developers can build and deploy the protocol’s “secret” smart contracts that use encrypted inputs, outputs, and states. These contracts reportedly allow a blockchain to utilize private data in decentralized apps without compromising users’ personal data.

The protocol said it was also planning on launching bridge mining rewards starting in January. Crypto users can earn Secret’s SCRT tokens for keeping their assets locked on the Secret Ethereum Bridge.

Also read: UK investment manager shifts allocation to Bitcoin from gold in ‘defensive move’

Source: https://cointelegraph.com/news/secret-bridge-turns-erc-20-tokens-into-privacy-coins