Secret Network, a blockchain with privacy-preserving smart contacts, today unveiled the testnet for Shinobi, its new protocol for bridging Bitcoin and Secret Network. With a hash verification system, Shinobi Protocol avoids the traditional direct custodial model by instead being a privacy-secured trustless bridge.
Soon, Bitcoin users will have access to the Secret DeFi suite. Using Shinobi, peg in/out actions communicating with Secret Network are not discernible from regular transactions on the BTC blockchain.
Shinobi is the fourth Secret Bridge on testnet, joining Cosmos, Terra, & Polkadot…
As more bridges are added to the mainnet, Secret DeFi users will have a variety of Secret tokens to interact with. Secret Bridges bring programmable privacy to assets from other ecosystems, allowing them to enter Secret Network as privacy-preserving “Secret tokens.”
A powerful concept, Secret tokens are programmable like ERC-20s and usable in applications, but they remain private by default like Monero and similar coins. Interactions with Secret token contracts are encrypted, viewable only to address owners or holders of their viewing key.
Since Bitcoin is transparent by default and not fundamentally integrated into a smart contract platform, the biggest immediate benefit for Bitcoin users with the Shinobi bridge is that they can gain accessibility to a privacy-preserving version of BTC plus the suite of Secret Network applications.
Secret DeFi includes apps like SecretSwap, a front-running resistant, cross-chain, and privacy-first AMM.
One key to Shinobi Protocol is the introduction of the SHINOBI token, which is the sustainability model for encouraging hash verification of cross-chain transactions between Bitcoin and Secret Network.
The more a validator or user confirms these transactions, the more SHINOBI token they will earn.
A small amount of SHINOBI token is required to unlock the originally locked BTC in return for SBTC – thus creating the sustainability and value model for Shinobi Protocol and the development team.
For further information check out the Shinobi Whitepaper.