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Blockchain technology provides a beneficial layer of openness and transparency that current centralized networks cannot, but some private data isn’t meant to be shared publicly.
How many …
Blockchain technology provides a beneficial layer of openness and transparency that current centralized networks cannot, but some private data isn’t meant to be shared publicly.
How many people want to use a network that shares their financial details and identifying information to everyone, for example?
That’s the issue that Secret Network aims to solve. By enabling programmable smart contracts that run on blockchain and compute within trusted execution environments, shielding the data from the nodes themselves, Secret Network promises the transparent benefits of blockchain with the kind of security and privacy that users demand from web services.
Here’s a look at how Secret Network works and what the community behind it hopes to achieve with the project.
Secret Network is a blockchain built specifically for data privacy. By supporting encrypted inputs, outputs, and smart contract states, Secret Network enables programmable smart contracts that keep user data safe. If coins like Monero and Zcash are the privacy-centric evolution of Bitcoin, Secret Network’s smart contracts are like an evolution of Ethereum’s own smart contracts, building upon that premise while enabling the secure transfer of private data.
Secret Network was born out of
Ultimately, the community around
Secret Network is a layer-
It’s similar to how a smartphone processor uses a TEE to handle sensitive data like fingerprints, but it’s a blockchain node instead. The network bills its smart contracts as “secret contracts,” as they’re designed to preserve the privacy of the data held within. The SCRT (“Secret”) coin must be staked by nodes to participate in the network, plus it is used to pay fees and transfer value.
There’s a lot to like about blockchains as far as being immutable and transparent, but that kind of openness limits the kind of data that can be safely handled by many blockchains—particularly top-secret data that people or companies wouldn’t want seen by just anyone.
Secret Network aims to plug that hole by providing the layer of privacy and security while still keeping what people like about blockchain technology—the best of both worlds, in theory. While it’s not the only company attempting to fill that void, it’s a concept that could be key to driving the future of certain decentralized apps (dapps), particularly in the realm of decentralized finance (DeFi).
Secret Network is designed to empower decentralized applications that demand a level of privacy not found on many other blockchain networks. By using a trusted execution environment and keeping private data away from both the public and node operators, it can handle sensitive information that users and organizations might not otherwise be willing to share.
The network’s operators have proposed a wide number of potential use cases, including credit scoring and lending dapps that ensure privacy, machine learning capabilities that still retain privacy in the process, and improving the ability to safely share and monetize data. More widely, Secret Network could potentially be useful to any dapp that handles sensitive data.
In this blog: how you can receive $SEFI, recent @secret_swap growth and improvements, upcoming bridges (including #BSC and beyond), and more!$SCRThttps://t.co/GCxGf8T30B
— 𝕊ecret Network (@SecretNetwork) March 17, 2021
With the ENG-to-SCRT token swap concluding in January 2021, effectively closing the book on the old
Secret Network is also making a big decentralized finance push with its Secret DeFi initiative, and launched a SecretSwap decentralized exchange in February 2021. According to the Secret Network FAQ , “part of our vision has always been bringing privacy to every blockchain,” and it calls out Cosmos inter-blockchain communication and interoperability as another potential initiative on the roadmap.
Beyond that, Secret Network appears focused on attracting more developers to build their dapps on the blockchain, thus demonstrating more use cases in the process. It’s not the only blockchain with privacy-focused smart contracts ( Oasis Network is another example) and there are other potential solutions to the dilemma of handling sensitive data on blockchain—such as secure multi-party computation. Whether Secret Network’s solution ultimately stands above others currently on the market or even on the horizon remains to be seen.

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Bitcoin is not a security—but that doesn’t mean that it won’t be regulated, former US Securities and Exchange Commission (SEC) chairman Jay Clayton said today.
Clayton, who now advises …
Bitcoin is not a security—but that doesn’t mean that it won’t be regulated, former US Securities and Exchange Commission (SEC) chairman Jay Clayton said today.
Clayton, who now advises One River Asset Management on cryptocurrency, told CNBC that Bitcoin was not a security long before he joined the SEC. But regulation of the asset will still inevitably come, he added.
— Squawk
“[Bitcoin not being a security] does not mean that it should not be regulated,” he said.
“In fact, where digital assets land at the end of the day, which is very much a wide-ranging question, will be driven in part by regulation—both domestic and international—and I expect, and I’m speaking as a citizen now, that regulation will come in this area both directly and indirectly whether it’s through how these are held by banks, security accounts, taxation and the like.”
Clayton’s comments come as Ripple , the company behind XRP , previously the third-most capitalized cryptocurrency in the market, asks the SEC to reexamine Bitcoin and Ethereum. Specifically, Ripple wants a court to compel the SEC to share its internal discussions about Bitcoin and Ethereum in the hopes that it will improve its own case for XRP.
Ripple is facing a billion-dollar lawsuit from the SEC, which filed its complaint just before Clayton stepped down as chairman. The Commission alleges that the company illegally raised $1.3 billion through the unregistered sale of XRP, which the SEC says was a type of security known as an investment contract.
But Ripple says XRP is not a security—but rather a cryptocurrency. The company is in the process of fighting the SEC’s lawsuit on those grounds.
As part of its defense, Ripple asserts that the SEC should class XRP as a
The lawsuit has so far proven to be detrimental for the firm, and for XRP: top crypto exchanges like Coinbase, Binance, and Kraken have halted all XRP trading. The price of the currency also dipped, and it fell down the list of the top cryptocurrencies by market cap—dropping from third to seventh in a matter of months.

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We are discovering a new reality. Things that were once unimaginable are becoming real and part of our world. Achieving quantum supremacy is one of the monumental breakthroughs that will …
We are discovering a new reality. Things that were once unimaginable are becoming real and part of our world. Achieving quantum supremacy is one of the monumental breakthroughs that will revolutionize history. But, what effect will it have on Ethereum? Cryptographer and blockchain researcher Amira Bouguera explains in the following article.
“Science offers the boldest metaphysics of our age. It is a thoroughly human construct, driven by the faith that if we dream, press to discover, explain, and dream again, the world will somehow come clearer and we will grasp the true strangeness of the universe.”
TL;DR:
Our journey to quantum computing begins in 1981 when the brilliant Nobel prize winner Feynman raised the following question at an MIT conference on physics and computation:
At that time, no one thought it could be possible. This comes back to the definition of physics and the limits of classical computers. Physics is the study of energy, matter, and the interaction between them. Our world, and reality in itself is quantum in nature; electrons exist in multiple states at once, and we can’t model that properly with classical computers. Calculating every possibility is just too much for them, for example:
Feynman’s speech and accompanying paper in 1982 is the first work that explicitly discusses the construction of a machine that would operate on quantum mechanical principles. He discussed the idea of a universal quantum simulator, i.e., a machine that would use quantum effects to explore other quantum effects and run simulations.
Tech giants are racing to build the first quantum computer, a device with millions of times more processing strength than all the computers currently on Earth combined. Recently, in an article published in the scientific journal, Nature, Google announced that it has realised what was once thought to be impossible: achieving quantum supremacy.
To explain quantum supremacy, it’s worth describing how quantum computers work.
In a quantum computer, we have quantum bits (qubits), which can be in state 0 or
Qubits can be anything that exhibits quantum behavior: an electron, an atom, or a molecule.
Two key aspects of quantum mechanics are superposition and entanglement. These two concepts are the secret behind the quantum computer’s superpower.
Superposition is an extraordinary phenomenon in quantum physics that quantum computers leverage. It allows a particle to exist in two separate states at once, as the result of being linked to a random subatomic event that may or may not occur.
A cat, with a Geiger counter, and a bit of poison in a sealed
Can a cat be dead and alive at the same time?
We don’t know whether the cat is dead or alive until we look, and when we do, it is either dead or alive, but if we repeat the same experiment with enough cats, we see that half the time, the cat survives and half the time he dies.
In quantum physics, the entanglement of particles describes a relationship between their fundamental properties that can’t have happened by chance. This could refer to states such as their momentum, position, or polarisation.
Knowing something about one of these characteristics for one particle tells you something about the same characteristic for the other. This means that the person who opened the
Today, the use of the term “quantum computers” is no longer limited to scientific journals and physics conferences. Many players are engaged in a battle over who can build the first powerful quantum computer. These include commercial entities such as Google, Rigetti, IBM, Intel, D-Wave, IonQ, and Microsoft. Additionally,
Quantum supremacy is the notion of a quantum computer doing something that classical computers simply can not reasonably do. In this instance, the reported Google paper claimed it was able to perform a task (a particular random number generation) on its QC in 200 seconds (3 minutes 20 seconds) versus what would take 10,000 years on a supercomputer.
Google has used Sycamore, its newly developed 53-qubit quantum processor, to achieve quantum supremacy. The purpose of this gate-based superconducting system is to provide a testbed for research into system error rates and scalability of their qubit technology, as well as applications in quantum simulation, optimization, and machine learning.
Although Google’s achievement was a huge step forward into the advancement of quantum computers, significant milestones remain ahead before a commercially viable quantum computer that can be used to solve real-world problems can exist.
Quantum computing is an unleashed power with two sides. On the one hand, it represents a significant breakthrough in fields like science, life-saving medical advances, and financial strategies. On the other hand, it has the power to break our current encryption systems used to protect information.
The security of most cryptographic methods currently in use, whether for encryption or digital signature, is based upon the hardness of solving some mathematical problems.
While computing discrete logarithms and factoring integers are distinct problems, they both are solvable using quantum computers.
Ethereum currently uses elliptic curve based schemes like the ECDSA scheme for signing transactions and BLS for signature aggregation; however, as mentioned above, the elliptic curve cryptography in which security is based upon the difficulty of solving the discrete logarithm is vulnerable to quantum computing and must be replaced with a quantum-resistant scheme.
The hash function SHA-256 is quantum-safe, which means that there is no efficient known algorithm, classical or quantum, which can invert it.
While there is a known quantum algorithm, Grover’s algorithm, which performs “quantum search” over a black-
In the Ethereum 2.0 Serenity upgrade, accounts will be able to specify their own scheme for validating transactions, including the option to switch to a quantum-safe signature scheme.
Hash-based signature schemes like the Lamport signature are believed to be quantum-resistant , faster, and less complex than ECDSA. Unfortunately, this scheme suffers from size issues. The size of Lamport public key and signature together is 231 times (106 bytes vs. 24KB) more than the ECDSA public key and signature. So, the use of the Lamport Signature scheme will need 231x more storage than ECDSA, which is unfortunately too large to be practical at this time.
Ethereum developers are testing other quantum-resistant signature options like XMSS (eXtended Merkle signature scheme) signatures used by The Quantum Resistant Ledger blockchain , hash ladder signatures , and SPHINCS .
There are many reasons to switch to hash-based signature schemes like XMSS, as they are fast and yield small signatures. One major drawback is that XMSS signature schemes are stateful, due to their Merkle trees with many one-time signatures. This means the state has to be stored in order to remember which one-time key pairs were already used to create a signature. On the other hand, SPHINCS signatures are stateless as they use few time signatures with Merkle trees, which means no need to store the state anymore since one signature could be used multiple times.
Hash-based RANDAO functions, which are used for random number generation in the beacon chain in Ethereum 2.0, are already believed to be post-quantum.
During Ethereal, Justin Drake from the Ethereum Foundation revealed the 2027 Ethereum 3.0 plan to move from the zk-SNARKs to zk-STARKs protocol. Both techniques allow the prover to convince a verifier about a particular claim by sharing only a proof that backs up the prover’s claim, without sharing any private information. These techniques are normally used as a privacy and scalability method to send confidential transactions on Ethereum or as a replacement of BLS signatures for signature aggregation. However, zk-SNARKS relies on pairings that are not quantum-resistant. zk-SNARKS uses a trusted setup, which runs the risk of being compromised, compromising the entire system, and allowing the generation of false proofs. ZK-STARKs, on the other hand, are quantum-secure as they are based on hash and not pairings. They improve upon this technology by removing the need for a trusted setup.
Google has accomplished a great achievement. This technology will harness the unusual laws of quantum mechanics to bring unimaginable advances in fields like materials science and medicine. Simultaneously, it could also pose the greatest threat to cybersecurity yet. Fortunately, the threat is not yet here. No one knows when the quantum power will strike, but when it does, Ethereum will be prepared.
Developers from the Ethereum community have begun working on alternative cryptographic signature schemes to replace those vulnerable and build a secure, resilient post-quantum Ethereum protocol. Additionally, the National Institute of Standards and Technology (NIST) initiated a process to solicit, evaluate, and standardize one or more quantum-resistant public-key cryptographic algorithms. At the time of this posting, NIST has short-listed 26 algorithms for post-quantum cryptography standardization to advance to the next round of testing.
Amira Bouguera is a cryptographer and security engineer at ConsenSys Paris. She teaches cryptography Université Paris 8.

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