About the Network
Secret Network is a decentralized network of computers ("secret nodes") that utilize trusted execution environments (TEEs) to protect data-in-use, keeping data encrypted and "secret" at all times. This means that even the nodes in the network cannot see the data being used for computations.
Validators / Secret Nodes
Nodes in Secret Network perform computations and verify blockchain activity. The network uses a popular delegated proof-of-stake consensus algorithm, Tendermint . Up to 50 node operators at any time can be validators for Secret Network. For more information on how you can run your own secret node, visit our full developer documentation.
Network Economics and SCRT
Secret Network is secured by the SCRT coin (Secret), which is used for fees, staking, and governance. That means nodes in the network receive fees and network rewards in SCRT, and they must stake SCRT in order to operate. When nodes go offline, they can be "slashed" and lose a portion of their SCRT stake. Holders of SCRT who are not operating nodes may bond their stake to a specific node in order to become a delegator. Delegators have an opportunity to earn a share of fees and network rewards by supporting a particular set of validators. Both node operators and delegators earn a return on their staked or delegated SCRT coins. Returns depend on the number of coins staked on the network and the SCRT inflation rate. **Currently, returns from staking are between 25-30% annually).
As mentioned, a key utility for SCRT is governance of the network. Secret nodes can create and vote on governance proposals using SCRT, allowing for decentralized control of the network by the community. Most network parameters, such as the inflation and community tax rates, are decided through on-chain governance.
Transactions, validators, current inflation, governance proposals, and more can be viewed using the following Secret Network block explorers:
If you have SCRT coins but do not want to run your own node, delegation is a great option. Delegation involves giving some of your staking power to a specific validator on Secret Network, who will then give you a share of their fees and rewards. As a delegator, you essentially get the same returns as a node operator minus their commissions. If there is an on-chain governance vote, a delegator's vote will be the same as their validator's, unless the delegator changes their own vote manually. Since at present there can only be 50 active nodes on the network, delegators play a crucial role in decentralization.
Multiple wallets already provide support for SCRT transactions, staking, and governance.
How do I run a Secret Node?
Learn more in the full documentation .
Community Staking Guides
Here are some guides written by members of the Secret Network community on staking: