NewsCrypto, a DeFi protocol that provides a comprehensive set of analysis tools for traders, has partnered with Secret Network, a privacy-focused protocol. The partnership is meant to enhance the privacy nature of NewsCrypto’s decentralized ecosystem, allowing traders to leverage the platform’s features while keeping their transactions private. 

Privacy has been a hot topic in recent years, with the world becoming more interconnected through the web. Stakeholders ranging from regulators to consumers are taking action towards data protection, although it has not been an easy road. The urgency of private-focused ecosystems is even more critical within the crypto market following the rise of Decentralized Finance (DeFi). 

DeFi grew in popularity over the past year, giving rise to novel innovations that might define the future of finance. While this upcoming niche proposes a significant value proposition, most applications are built on public blockchains such as Ethereum. This means that anyone can view transactions by tracking them on a blockchain explorer. However, not for so long, privacy solutions such as Secret Network are changing the game. 

NewsCrypto Partnership with Secret Network 

The NewsCrypto platform is an already tested product that serves as an all-in-one crypto suite for veteran and upcoming traders. Some of the features embedded within its decentralized architecture include market indicators, trading simulator, community predictions and the NewsCrypto academy. All these tools are designed to give traders seamless information for decision making. 

NewsCrypto’s partnership with Secret Network will enhance user experience through privacy features. The Secret Network protocol enables transactional privacy, which means that traders can hide their token balances and transactions. In addition, this protocol also provides computational privacy, enabling the execution of smart contracts in an encrypted environment along with blockchain verifiability. 

The partnership announcement noted that NewsCrypto is proud to have partnered with Secret Network given the latter’s value proposition, 

“ … NewsCrypto is proud to announce that we’ve partnered up with Secret Network, the first protocol to enable not just transactional privacy (i.e. having your token balances and transactions hidden), but also computational privacy by default.”

Solving MEV and Front-running through Privacy 

Notably, the privacy solutions by Secret Network also solve the Miner Extractable Value (MEV) issue and front-running by network validators. MEV allows miners to take advantage of their position to reorder transactions in a manner that favours them. Ideally, they can create arbitrage situations given that they choose which transactions to pick from the mempool for settlement on the main layer. With such power over transaction ordering, miners can front-run transactions to make a quick buck by manipulating the price of an asset. 

For instance, when you submit a transaction order on a decentralized exchange, this information is visible on the public blockchain. As a result, miners can create two transactions (buy and sell orders) that front-run your order by setting a higher gas price which means that their buy order closes before yours, pushing the asset’s price up. Eventually, you buy the asset at a higher price, closing the miner’s sell order. 

Secret’s Network privacy solution eliminates MEV and front-running by hiding transactions and smart contract computations. The protocol makes it hard for miners to take advantage of information asymmetry as they cannot decipher pending transactions on the mempool. 

Conclusion 

Blockchain ecosystems are the apex of some of the latest financial innovations, hence the need to integrate privacy features. It may take a while before the industry develops fully-fledged privacy solutions, but it is only a question of when. There is already progress with the likes of Secret Network – a trend that is likely to continue as more DeFi projects embrace privacy-focused environments. 

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Source: https://coinpedia.org/news/newscrypto-partners-with-secret-network/