Secret Network Brings Confidential Computing to RWA Sector

Secret Network recently announced a partnership with XDC Network to integrate its Confidential Computing Layer. XDC Network has been specifically developing a blockchain for Real World Assets (RWA). This collaboration provides XDC with tools, documentation, and support for decentralized confidential computing (DeCC), enhancing its capabilities.

Secret Network has been a pioneer in developing DeCC infrastructure, which offers privacy by default. This means that while decentralized applications (dApps) can process and output results, the underlying input data remains hidden from users. This enables a range of features such as encrypted data for XDC’s digital assets – perfect for tokenizing RWAs. Other applications of DeCC include private voting for DAOs, secure storage for applications, and more confidential functions like random number generation for games and encrypted order books for DeFi applications.

It is important to note that Secret Network differs from projects like Monero and Zcash. Unlike these projects, which focus on complete transactional anonymity, Secret Network aims at programmable privacy, which caters to different needs.

Initially launched as a standalone network, Secret expanded to support cross-chain interoperability. In 2023, they introduced “Privacy as a Service,” using cross-chain communication to offer confidential computing to other blockchains. This became possible through protocols like Cosmos’s IBC and Axelar, allowing developers to blend features from multiple blockchain ecosystems. For instance, a dApp running on Optimism could use a proxy contract on Secret Network for private computations.

This step has opened a new chapter for the Secret Network, known as the Confidential Computing Layer, aiming to bring major blockchain networks into their fold. This includes not just XDC but also integrations with Ethereum, various Layer 2 networks like Optimism and Base, and other Layer 1 and 2 blockchains. As we await the impacts of these integrations, it will be fascinating to see how developers use Secret Network to create truly private dApps.

In today’s world, the importance of data and computation privacy cannot be overstated, given the excessive transparency of blockchains can be a barrier in certain applications. DeCC could potentially bridge this gap, driving broader adoption of decentralized applications that can rival the centralized services offered by large corporations.

Secret Network’s native token, SCRT, still has not responded to new partnerships and the expansion of the Confidential Computing Layer. Currently, it is trading with a market cap of about $83 million and has not seen much growth in the last 6-8 months, even with the recent market uptick. 

However, this could quickly change as developers start to recognize all the benefits the network offers and begin integrating Secret Network’s privacy features. We will continue to Observe.