Hottest Privacy Projects 2021
The Secret Network Appears To Solve Some Problems In Developing Privacy Coins
Global Big Brother is working hard to try to make it difficult to use Privacy Cryptocurrency.
Guy at Coin Bureau does a good job of explaining the Secret Network, and we thank him for the use of this video.
Hottest Privacy Projects 2021
Check Out Our Crypto Privacy Site: CryptoGrizz.com
Check Out Our Crypto Trading Site: CryptoGrizzTrader.com
COMPLETE TRANSCRIPT
0:00
once upon a time cryptocurrencies
00:03
preserved your privacy
00:05
this was because even though blockchains
00:06
like bitcoin and ethereum are public
00:09
it was hard if not impossible to link
00:11
transactions to individual identities
00:15
today anyone can pop open a blockchain
00:17
explorer and see
00:18
which wallets have what there are even
00:21
specialized blockchain analysis firms
00:23
like chainalysis
00:24
which are constantly on the lookout for
00:26
malicious behavior
00:28
as a result it’s getting harder to
00:30
preserve your privacy in the crypto
00:32
space
00:32
and it doesn’t help that regulators are
00:34
pressuring exchanges to de-list privacy
00:37
coins
00:37
like monero however i believe that
00:40
privacy is a human right and i know
00:43
there must be some way to preserve it on
00:45
the blockchain in a way that doesn’t
00:47
beckon the ban hammer
00:49
and it so happens there are two
00:51
cryptocurrency projects that have
00:53
managed to achieve
00:54
just that secret network and tornado
00:57
cash
00:58
have found a way to provide total
01:00
privacy in a compliant manner
01:03
both of their respective tokens have
01:04
seen impressive growth so far
01:06
and today i’m going to tell you why the
01:08
best is yet to come
01:14
[Music]
01:17
before we get high tech i need to make
01:19
sure i don’t get wrecked
01:21
i went to the school of non-financial
01:23
advisors
01:24
and all i got was this lousy t-shirt so
01:27
because i am not a financial advisor
01:29
nothing in this video can be considered
01:31
financial or investment advice
01:33
sorry folks not my mo if this
01:36
is your first time stopping by the coin
01:38
bureau then a few introductions are in
01:40
order
01:41
my name is guy and i create quality
01:43
cutting edge crypto content on a daily
01:45
basis
01:46
cryptocurrency news reviews tutorials
01:49
and market analyses are just
01:51
a few menu items in my financial flavor
01:53
town
01:55
so if this is what you’ve been hungry
01:57
for then make sure you always get your
01:59
fill by subscribing to the channel and
02:01
pinging that notification bell
02:02
i’ve left some timestamps in the video
02:04
timeline that you can use to enhance
02:06
your viewing experience
02:08
feel free to skip around if you think
02:10
it’s necessary but it’s always nice to
02:12
have you from start to finish
02:14
on that note it’s about time we got
02:16
going let’s see
02:17
what secret network and tornado cache
02:20
are all about
02:22
the story of secret network begins with
02:24
another cryptocurrency project called
02:26
enigma launched in 2014 enigma was a
02:30
layer 2 scaling solution for ethereum
02:32
that featured privacy preserving smart
02:34
contracts
02:35
in february 2020 enigma launched its
02:38
main net and rebranded to secret network
02:40
after a community vote a few months
02:42
later to call secret network a
02:44
continuation of enigma isn’t entirely
02:47
accurate however
02:48
this is because enigma mpc which
02:51
developed enigma is now just one of the
02:53
many companies working on
02:54
secret network moreover secret network
02:58
has its own founder tor bear
03:00
enigma’s former head of growth and
03:02
marketing secret network is the first
03:04
cryptocurrency blockchain to offer
03:06
privacy preserving smart contracts
03:08
called
03:08
secret contracts any transactions made
03:11
within secret contracts are completely
03:13
hidden
03:14
from everyone even the validator nodes
03:16
on the secret network blockchain
03:18
that said secret network’s native scrt
03:21
coin
03:22
is not a privacy coin in fact all scrt
03:25
transactions
03:26
are publicly viewable like btc and eth
03:29
so where does the privacy come from well
03:32
the answer is
03:33
secret tokens secret tokens are the
03:35
assets used in secret network’s secret
03:38
contracts
03:39
these tokens preserve privacy by default
03:41
like monero and grin
03:43
to ensure regulatory compliance secret
03:46
token holders have access to a viewing
03:48
key which they can use to prove their
03:49
ownership of any assets they have
03:51
in secret contracts this blend of
03:54
privacy and transparency allows secret
03:56
network to address
03:57
multiple use cases that other
03:58
cryptocurrency blockchains cannot
04:00
such as defy applications that are
04:02
resistant to front-running
04:04
rather than competing directly with
04:06
other smart contract blockchains
04:08
secret network hopes to become the
04:10
privacy hub
04:11
for the entire cryptocurrency ecosystem
04:14
so how exactly does secret network
04:18
work secret network was built using the
04:21
cosmos sdk
04:22
it uses tendermint which is a byzantine
04:24
fault tolerant delegated proof-of-stake
04:27
consensus mechanism
04:29
this means that secret network can
04:31
theoretically process between 10 to 14
04:33
000 transactions per second though no
04:36
official figure exists yet
04:38
it also means that secret network is
04:40
relatively less decentralized as a
04:42
result
04:43
having a maximum of 50 validator nodes
04:46
at any given time
04:47
unlike many other tendermint chains
04:49
validators on the secret network can
04:51
have their stakes slashed for downtime
04:54
and can even be banned if they attempt
04:56
to manipulate transactions
04:58
as you may have guessed these secret
05:00
validators
05:01
also handle the secret contracts secret
05:04
contracts on secret network
05:05
achieve privacy by running inside
05:08
trusted execution environments or tees
05:12
tees are used in everything from video
05:14
games to smartphones
05:16
they function like a black box wherein
05:18
computations can be performed on
05:20
encrypted data
05:21
the secret tokens used within secret
05:23
contracts are made using the snip 20
05:26
standard which is of course
05:27
analogous to ethereum’s erc20 standard
05:30
to mint secret tokens you deposit
05:33
regular assets such as the scrt token
05:35
into a smart contract to mint secret
05:38
scrt
05:39
all account balances transactions and
05:41
transaction amounts are
05:42
private when using secret tokens and
05:45
secret scrt
05:46
is just one of the many secret tokens
05:48
you can mint as of mid-december 2020
05:51
you can mint over 20 ethereum tokens on
05:54
secret network as
05:55
secret tokens using the secret ethereum
05:58
bridge
05:58
including eth wi-fi link and usdc
06:02
the secret ethereum bridge is also
06:04
bi-directional meaning you can use
06:06
scrt on ethereum as a wrapped erc20
06:09
token
06:10
now this is somewhat funny when you
06:12
consider the tokenomic history of the
06:14
coin
06:15
there was no ico for the scrt coin
06:18
instead enigma token holders were given
06:21
the option to burn
06:22
eng on ethereum to mint an equivalent
06:25
amount of scrt
06:26
on the secret network at the time eng
06:30
was still listed on binance which
06:31
announced in october that they would be
06:33
supporting the swap
06:34
of eng to scrt just short
06:37
of 115 million eng were burned before
06:40
the convertibility period concluded
06:42
on january the 1st this year this
06:45
process resulted in a remarkably
06:47
equitable
06:48
distribution for scrt which is what you
06:50
want given that the coin is also used to
06:52
table and vote on proposals
06:54
to the secret network however
06:57
in december 2020 secret network updated
07:00
its tokenomics and
07:02
revealed that it minted roughly 50
07:04
million additional coins
07:05
to fund various initiatives you can see
07:08
how
07:09
scrt was allocated in the image here
07:12
now i will note that these allocations
07:14
are a bit bizarre given that the secret
07:16
foundation earns 15
07:18
of all staking awards as part of a
07:20
foundation tax
07:21
that is meant to support the development
07:23
of the network
07:24
on the bright side a quick glance at the
07:26
scrt balances on one of secret network’s
07:29
block explorers
07:30
reveals its coin distribution is still
07:33
quite equitable
07:34
wallets are also conveniently labeled on
07:36
this block explorer
07:38
which is admittedly rare for newer
07:40
cryptocurrencies
07:41
scrt has a current supply of roughly 177
07:45
million
07:46
and currently has an inflation rate of
07:48
15
07:49
per year this inflation is used to
07:51
reward validators and delegators to the
07:54
tune of 26
07:55
and 28 percent per year respectively
07:58
44 of the supply is currently being
08:01
staked and most of this
08:02
seems to be from the current circulating
08:04
supply of 70 million
08:06
now this is significant because any
08:08
staked scrt
08:10
has an unlocking period of 21 days
08:12
meaning it won’t be making it onto any
08:14
exchanges anytime
08:15
soon if the price starts to moon
08:18
speaking of price action
08:20
scrt has pulled a 5x since the start of
08:22
the year
08:23
and remains in a visible uptrend given
08:26
that secret network has a market cap of
08:28
under 200 million dollars and
08:30
no previous resistance there is still
08:32
lots of room to grow
08:35
unfortunately it does not have much
08:37
trading volume and the only
08:38
reputable exchange which supports it is
08:41
binance
08:42
this is not all that surprising when you
08:44
consider the large amount of scrt
08:46
currently being staked
08:48
if you’re interested in staking or
08:50
earning liquidity mining rewards for the
08:52
secret ethereum bridge you can easily do
08:54
so
08:55
using the kepler wallet browser
08:57
extension you’ll also need the kepler
08:59
wallet to interact
09:00
with secret network’s upcoming dapps
09:04
besides the secret ethereum bridge
09:06
secret network
09:07
just launched the first ever privacy
09:09
preserving dex
09:11
secret swap is modeled after amms like
09:14
uni swap and sushi swap and
09:15
like these too secret swap will also
09:18
feature its own
09:19
governance token at the time of this
09:22
video they have only referred to it as
09:24
gov tokens but we should have more
09:26
information on it in the coming weeks
09:29
whereas scrt is used to vote for changes
09:31
to the secret network itself
09:33
this defy gov token will give holders
09:35
the ability to not just change
09:37
secret swaps parameters but actually
09:39
decide the direction of secret network’s
09:42
entire d5 ecosystem while secret swap
09:46
and the secret ethereum bridge are
09:47
currently the only d5 protocols on
09:49
secret network
09:50
defy ecosystem grants were introduced by
09:53
secret network just a couple of weeks
09:55
ago
09:56
secret network already has a long
09:58
laundry list of desired d5 protocols
10:01
including synthetic assets lending
10:04
borrowing and
10:05
automated yield protocols like yearn
10:07
finance
10:08
if binance’s funding of its own d5
10:10
protocols is anything to go by
10:12
secret network might be on track to see
10:14
some impressive tvl figures
10:17
the secret ethereum bridge already has
10:19
over 50 million dollars of ethereum
10:21
assets locked which is more than a
10:22
fourth of the market cap of the scrt
10:25
coin secret network also has one
10:28
important edge over
10:29
other aspiring d5 ecosystems and that’s
10:32
the fact that it has gamified the growth
10:34
of its network through the use of
10:35
secret network committees now these
10:38
secret network committees consist of
10:41
quote secret agents that collectively
10:43
earn
10:44
two percent of all staking rewards as
10:46
compensation
10:47
for improving and expanding the reach of
10:49
secret network
10:51
this is similar to kusama’s kappa sigma
10:54
mu society albeit with more
10:56
tangible and meaningful goals you can
10:59
learn more about kappa sigma mu by
11:00
watching my last
11:02
double crypto video which featured
11:04
kusama that’s
11:05
in the top right despite the somewhat
11:09
questionable tokenomics related to
11:11
allocation secret network
11:12
seems to be poised for some serious
11:15
growth in 2021
11:16
and tornado cache has the same forecast
11:20
tornado cache was founded by quantum
11:22
statistician
11:23
roman semionov and software seventh
11:26
roman
11:26
storm in august 2019 a suitable name to
11:30
say the least
11:31
anyways the two romans have been active
11:34
in the cryptocurrency space for years
11:36
specializing in layer 2 scaling
11:37
solutions for ethereum
11:39
and privacy technologies like zk snarks
11:42
they are regular attendees at
11:44
cryptocurrency hackathons and
11:46
roman semionov stated in an interview
11:48
that they try to attend as many
11:50
as humanly possible in 2018 they founded
11:54
pepesec a software company that develops
11:56
dapps and provides smart auditing
11:58
services
11:59
i’ll just quickly point out the
12:00
pebbersec homepage features two roman
12:03
soldiers which is
12:04
a nice touch anyways tornado cache is a
12:07
protocol that makes it possible to send
12:09
private transactions on ethereum
12:12
as many of you will know ethereum is a
12:14
public blockchain
12:15
this means that you can see every
12:17
ethereum transaction taking place
12:20
you can see what the asset is who is
12:22
sending it who is receiving
12:24
it how much they paid for gas etc
12:27
while many privacy preserving protocols
12:29
existed for ethereum prior to tornado
12:31
cache
12:32
none had managed to break the connection
12:33
between the sender and the recipient in
12:35
an ethereum transaction can you guess
12:38
which protocol managed to do that
12:41
now best of all tornado cache has no vc
12:44
funding and only received a few small
12:47
community donations
12:48
via molok dao and other similar crypto
12:50
crowdfunding platforms
12:53
with tornado cache you can privately
12:55
send eth die
12:56
usdc and usdt to any ethereum address
13:00
you can even send these assets to a
13:02
brand new ethereum address
13:03
with a zero balance this is significant
13:06
because to claim assets from a protocol
13:08
on ethereum
13:09
you usually need to pay gas fees beneath
13:12
tornado cache works around that
13:14
requirement and here’s how
13:17
tornado cache takes cryptocurrency
13:20
mixing to the next level
13:22
now if you don’t know how cryptocurrency
13:24
mixing works then picture this
13:26
imagine there’s a bag of coins anyone
13:29
can come by and drop their coins
13:31
into the bag let’s say you drop five
13:34
coins into the bag
13:35
when you do that you’re given a note
13:37
that says you can claim
13:39
five coins whenever you like now
13:41
assuming enough people
13:43
have tossed their coins into the bag the
13:45
five coins you pull out when you use
13:47
that receipt
13:48
aren’t going to be the original coins
13:49
you tossed in
13:51
this breaks the connection between the
13:52
coins you deposited
13:54
and the coins you withdraw this is
13:57
basically
13:57
how tornado cash works except everything
14:00
takes place
14:01
on ethereum instead of depositing coins
14:04
into a bag
14:04
they’re deposited into a smart contract
14:06
and instead of getting a receipt
14:08
you’re given a cryptographic proof a
14:10
privacy technology
14:12
used in zcash called zk snarks makes it
14:15
possible to claim
14:16
your coins using the proof without
14:17
revealing which coins you initially
14:19
deposited
14:20
to get that proof thus breaking the
14:23
connection between
14:24
sender and recipient to send ethereum
14:27
assets to a brand new address with no
14:29
eth to cover withdrawal fees
14:31
you can use one of the dozen or so
14:33
relayers on tornado cache
14:35
these relayers essentially submit the
14:37
cryptographic proof on your behalf
14:40
all you have to do is provide it to them
14:42
along with the new ethereum
14:44
address some extra eth for the
14:45
withdrawal plus a small fee for their
14:48
service and
14:49
bang you have an ethereum wallet with
14:52
untraceable funds
14:54
what’s more is that the relays never
14:56
actually take control
14:57
of your funds they are only able to send
14:59
those funds from the smart contract
15:01
to the ethereum address you specified
15:04
this
15:04
is guaranteed by the code of the
15:07
protocol
15:08
while this technology is powerful it
15:10
does have some limitations
15:12
since there needs to be a smart contract
15:14
for each asset and each denomination
15:16
the size and privacy of each transaction
15:18
is limited
15:19
by how many people are depositing into
15:21
that specific smart contract
15:23
for example here you can see that 10 000
15:26
people have deposited into the smart
15:28
contract
15:28
for 10 eth however there are less than
15:31
200 people who have deposited into the
15:33
smart contract
15:34
for 1 000 die and apparently no or not
15:37
enough participants
15:38
to run the 10k and 100k die smart
15:41
contracts
15:42
also there are some additional privacy
15:44
procedures
15:45
you should take to make sure you aren’t
15:47
tracked in other ways when moving funds
15:49
around
15:50
these are conveniently noted in a medium
15:52
post from january of last year which
15:54
i’ll leave in the description
15:57
before you call the fbi you should know
15:59
that tornado cash is fully compliant
16:01
with regulations
16:02
anyone can use their cryptographic proof
16:05
to show the connection between the funds
16:07
they deposited
16:08
and the funds they withdrew if needs be
16:10
this is important
16:12
because some exchanges will refuse to
16:14
deposit funds
16:15
that have been used in cryptocurrency
16:17
mixes such as
16:18
tornado cash although this compliance
16:21
tool makes it possible to deposit those
16:23
mixed funds onto an exchange
16:25
i don’t imagine it will be a walk in the
16:27
park when it comes to explaining what’s
16:28
going on
16:29
to an exchange’s customer service rep i
16:32
also don’t think tornado cash’s torn
16:34
token
16:34
is going to be listing on any regulated
16:36
exchanges anytime
16:38
soon either torn is an erc20 token
16:41
that’s used to govern the tornado cache
16:44
protocol
16:45
there was no ico for the token instead
16:48
vouchers to claim the tokens
16:49
were airdropped to all ethereum wallet
16:51
addresses that deposited assets into the
16:54
protocol
16:54
prior to december 6 2020. this was
16:58
actually one of the most lucrative
17:00
cryptocurrency airdrops of all time with
17:02
the average user
17:03
receiving 66 torn worth over twenty
17:06
three thousand dollars
17:07
in contrast to other airdrops how much
17:10
torn a wallet received was less
17:11
dependent on how much each the wallet
17:13
had actually deposited
17:15
this resulted in a very equitable
17:17
distribution of torn which is again
17:19
exactly what you want for a governance
17:21
token
17:23
torn has a maximum supply of 10 million
17:25
and about 500 000
17:27
torn were airdropped to users another 1
17:30
million were allocated
17:31
to anonymity mining which rewards users
17:33
in torn for depositing assets into the
17:35
various smart contracts i mentioned
17:37
earlier
17:38
5.5 million torn have been stored in the
17:41
dow treasury and the remaining 3 million
17:43
have been reserved for the founders and
17:46
early supporters
17:47
all of these tokens are subject to
17:49
various vesting schedules
17:51
which you can see here if you’re
17:53
wondering why the price history of torn
17:55
begins at the start of february that’s
17:56
because token transfers were locked
17:58
until that time and were only unlocked
18:00
via community vote
18:02
now this conveniently allowed the
18:04
founders to sidestep any regulatory
18:06
scrutiny that could have come from being
18:08
in control of the unlock
18:10
it also allowed them to make a pretty
18:12
penny a well-deserved pretty penny
18:14
i might add now when it comes to the
18:16
price potential of torn
18:18
it’s hard to say normally you can
18:20
measure whether an ethereum protocol is
18:22
over or undervalued
18:24
based on the dollar value of assets
18:26
locked given that torn has a market cap
18:29
of around 100 million dollars the fact
18:31
that there is 300 million dollars worth
18:33
of assets on the protocol
18:34
means torn could see at least a 3x move
18:38
from its current price
18:39
the problem is that there’s no way of
18:41
knowing whether this tvl
18:42
is organic or just yield farmers trying
18:45
to earn some of those anonymity mining
18:47
rewards
18:48
from a supply demand perspective there
18:50
is a lot more supply of torn that has
18:52
yet to come on the market
18:53
and i’m not so sure if there is enough
18:55
demand there to meet it
18:57
then again this sort of objective
18:59
thinking is null and void
19:01
during a bull run i imagine there would
19:03
be more than one person investing in
19:05
torn
19:06
just because of the cool name the
19:08
question is whether they’ll be willing
19:09
to pay the ethereum gas fees to buy it
19:12
on uniswap
19:12
given that there are no other viable
19:14
alternatives at the moment
19:16
this fundamentally depends on what
19:18
tornado cash has in store
19:20
as far as development goes but that too
19:23
seems quite uncertain even though
19:25
tornado cash seems to have a lot of
19:27
engagement when it comes to governance
19:29
it’s not entirely clear how much its
19:31
community can change
19:32
at the protocol level this is because
19:35
the romans destroyed their admin keys in
19:37
may of 2020
19:38
making it impossible to change the
19:40
protocol some
19:42
criticize this action as reckless since
19:44
the romans won’t be able to save the day
19:46
as they had done once before others
19:49
praised the move as being true to the
19:51
cryptocurrency ethos of
19:52
code is law after all tornado cash’s
19:56
code has been audited
19:57
multiple times and the guys who built it
19:59
do smart contract audits for a living
20:02
from what i could tell when listening to
20:03
interviews around that time the reason
20:05
why they nuked their admin keys
20:07
was because of regulatory pressure the
20:10
romans are
20:10
most likely on the radar of more than
20:13
one three-letter agency
20:15
now that’s a problem because they are
20:17
some of the only people who are capable
20:19
of building these elaborate privacy
20:21
protocols
20:22
i would be more concerned if they hadn’t
20:24
destroyed those admin keys
20:26
they did a damn good job and even
20:28
managed to catch the attention of
20:29
vitalik buterin who has been an
20:31
outspoken fan of the project i suppose
20:34
all the hype in the world can’t undo all
20:36
the headlines about how tornado cash was
20:39
used to launder stolen cryptocurrency
20:42
these aren’t the best optics to have
20:44
especially when you’re running a company
20:46
that specializes in smart contract
20:48
security
20:49
still tornado cash is a breakthrough for
20:52
the cryptocurrency space and it has once
20:54
again
20:54
raised the bar for both developers and
20:57
regulators
20:58
and to think it was just one of many
21:00
side projects
21:01
for these two romans well that just
21:04
about concludes my expose
21:06
on these two secret cryptocurrency
21:08
projects if you’re a fan of privacy
21:10
be sure to smash that like button if you
21:12
enjoyed this video
21:13
i hope it’s enough to warrant
21:15
subscribing to the channel and pinging
21:16
that notification bell
21:18
now i want to pick your brains which two
21:22
similar cryptocurrency projects do you
21:24
want to hear about
21:25
next i’m on the hunt for cryptogems so
21:28
drop a comment to let me know
21:29
where i need to go spelunking if you
21:32
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22:10
with that my friends i bid you a jew
22:12
thank you as always for watching
22:15
hoddle heart