Secret Tokens, a protocol to transform your ERC-20 into anonymous cryptos

Secret Tokens, a protocol to transform your ERC-20 into anonymous cryptos

2 minutes of reading Posted by Marine Debelloir. This article was last updated on December 16, 2020 at 9:57 AM.

Secret Network, an anonymity-based blockchain, has announced that its „Secret Ethereum Bridge“ is now online. It allows to transform ETH and ERC-20 into anonymous tokens.
Secret Tokens, a protocol to transform your ERC-20 into anonymous cryptos.

Anonymous ERC-20s thanks to Secret Network

As a Secret Network blog post explains, „secret“ versions of these ERC-20 tokens or ETHs allow anonymous transactions. The ERC-20 retain their ability to be programmable, but „private by default, like Monero and other similar altcoins“.

The „bridge“ between Secret Network Bitcoin Up and Ethereum works as follows: secretETHs (or secretERC-20s) are produced when the original tokens are locked on the network. If the user wishes to convert his tokens into their original version, the secretETH/ERC-20 are destroyed, and the original tokens are removed from the deposit contract.

This is a first step for Secret Network to extend these features to other blockchains. The service will also soon launch bridge mining. This will reward users who lock their ETHs and ERC-20s. In exchange for the SCRT, they will receive Secret Network’s native cryptography. A total of 2 million SCRTs will be allocated to the community.

Making the DeFi anonymous

The manoeuvre has one main goal: to launch anonymous decentralised finance services (DeFi) through the Secret Network. The press release explains as follows:

„This is a first step before the creation of a private DeFi ecosystem by default and compatible with several channels. »

This ambition can be seen in the choice of tokens that are compatible with Secret Network. For the moment, only about fifteen tokens are transformable, and they are linked to decentralised finance projects. Here is the list: ETH, YFI, UNI, BAND, COMP, LINK, AAVE, KNC, SNX, OCEAN, MKR, DAI, USDT, TUSD and WBTC.

Users can now test the bridge between Ethereum and Secret Network, and the distribution of awards should start in January.