Secret Network
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  • 👋INTRODUCTION
    • Secret Network Introduction
    • Secret Network Techstack
      • Private transactions - A quick summary
      • Blockchain Technology
        • Cosmos Basics
        • Tendermint
        • Cosmos SDK
        • IBC
        • CosmWasm
      • Privacy Technology
        • Encryption - Key Management
          • Overview
          • Key Derivation & Encryption Techniques
          • The Initialization Of Secret Network
          • Full Node Boostrap
          • Contract State Encryption
          • Transaction Encryption
          • Consensus seed rotation
        • Trusted Execution Environments  (TEE) —  Intel SGX
          • How Secret Network Uses SGX
          • SGX-SPS Security & Reliabillity
          • Remote Attestation
          • Trusted & Untrusted Core
          • Sealing
        • Private smart contracts - overview
  • 💻Development
    • 🏠Getting Started
      • Setting Up Your Environment
        • Cargo.toml Best Practices (Crates vs Dependencies)
      • Compile and Deploy
      • Running the Application
      • Compile and Deploy on Secret testnet (best for Javascript devs)
      • Fullstack dApp Integration
    • 🤓Secret Contracts
      • Secret Contracts & CosmWasm
        • Framework overview
        • Secret Contract Components
          • Instantiation Message
          • Execution Message
          • Query Message
          • Deps/DepsMut
          • Storage
            • Prefixed Storage
            • Singleton
            • Keymap
            • Append Store
            • Best practices
        • CosmWasm vs Secret CosmWasm
      • Secret Tokens (SNIP-20)
      • Contract - module call
      • Secret contract - Design Space/Features
        • Secret Contracts introduction
        • Gas/Fee usage
        • TPS and scalability
        • Privacy Essentials
        • Access Control
          • Viewing Keys
          • Permits
        • Trusted and untrusted data
        • Secret-VRF - on-chain Randomness
        • Privacy design
          • Mitigate privacy risks - full guide
          • Gas Evaporation & Tracking
        • Confidential Computing Layer
        • Fiat/Crypto Onboarding
        • Account abstraction
        • Fee abstraction
        • Wallet support
        • Bridge (messaging/tokens)
        • IBC (Hooks, PFM, Wasm)
        • Price Oracles
        • Auto Restaking
      • Permissioned Viewing
        • Viewing Keys
        • Permits
      • Cross Contract Communication
      • Submessages
        • get_contract_code_hash
      • Randomness API - Secret VRF
        • Native On-chain randomness
        • Randomness over IBC
      • Execution Finalization
      • Factory Contracts
      • Contract Migration
        • Manual - < v1.11
        • Native - from v1.11
      • Cross-deploy Vanilla CW and Secret Contracts
      • Testing Secret Contracts
        • Unit Tests
        • Continuous Integration
        • Datatype Handling - Uint, floats etc.
    • 👀Secret Contract - Reference, Guides, Examples
      • Starter guide - Millionaire's Problem
      • Reference Contracts
      • Open source dApps
      • Tools & Libraries
        • Network interaction SDKs
          • Secret.js (JavaScript)
          • SecretPy (Python)
          • SecretK (Kotlin)
          • Secret.NET
            • Snippets
              • Deploying a Contract
              • Send Native Coin
              • Query a Contract
              • Create a new Wallet
              • Permits
              • SNIP20
              • SNIP721
          • Shade.Js
        • LocalSecret - Devnet docker
        • Smart contract - Tools/Utils
          • Secret Toolkit
          • CW-Plus
          • Fadroma - SC framework
          • Hidden Gems
          • Other
            • Secret IDE
            • Polar
    • 🖼️Frontend Development
      • Getting Started with SecretJS
        • Usage Examples
          • Sending Queries
          • Sending Messages
          • Contract Migration
          • Wallet Integrations
          • Query Permits
          • SNIP20 (SCRT Tokens)
          • SNIP721 (Secret NFTs)
      • Feegrant
        • Understanding Feegrant allowances
        • Grant allowances
        • Using grant allowances to execute transactions
        • Using the Fee Grant Faucet
    • 📬Deployment Addresses/ API Endpoints
      • Secret (SNIP 20) token contracts list
        • SNIP Asset naming guidelines
      • Connecting to the Network
        • API Endpoints Mainnet (Secret-4)
        • API Endpoints Testnet (Pulsar-3)
        • Usage examples
        • Comparison of endpoint types
      • Create your own SNIP-25 IBC Token
  • Secret AI
    • 🤝Introduction
    • 🏗️Architecture
    • 👩‍💻Secret AI SDK
      • Setting Up Your Environment
      • Running the Application
    • 🪙Economics
    • Smart Contract Reference
      • SubscriptionManager
      • WorkerManager
      • RewardsManager
  • 🌐SecretVM - Confidential Virtual Machines
    • 🤝Introduction
    • 🏗️Architecture
    • ☑️Attestation
      • What is Attestation
      • Obtaining Attestation Data
      • Attestation Report - Key Fields
      • Chain of Trust
    • 🏁Launching a SecretVM
    • 🛠️Managing SecretVM Lifecycle
    • ✅Verifying a SecretVM
      • 🐢Full Verification
      • 🐰Quick Verification
    • 👨‍💻SecretVM CLI
      • Getting started
      • Authentication Commands
      • Virtual Machine Commands
    • 💡Best Practices for Developers
    • 🔐Verifiable Message Signing
    • 📖Glossary
  • 🔓Confidential Computing Layer
    • 🧑‍🚀IBC Developer Toolkit
      • Basics
        • Overview
        • Cross-chain Messaging with IBC Hooks
          • Functions, Methods, and Data Structures
          • Typescript SDK
          • IBC-Hooks
        • IBC Relaying with Go Relayer
      • Usecases
        • Storing Encrypted Data on Secret Network
          • Key-Value store Developer Tutorial
        • Secret VRF for IBC with IBC-Hooks
        • Confidential Voting
        • Sealed Bid Auctions
      • Supported Networks
        • Mainnet
        • Testnet
    • 🤝Ethereum (EVM) Developer Toolkit
      • Basics
        • Overview
        • Connecting Metamask to Secret Network
        • SecretPath + Reown integration
        • Cross-chain Messaging
          • SecretPath
            • Architecture Overview
            • Detailed Architecture
            • SecretPath Developer Tutorials
            • Public EVM Gateway Architecture
            • How to deploy SecretPath on your chain
          • Axelar GMP
            • Architecture Overview
            • Axelar GMP Developer Tutorial
      • Usecases
        • Storing Encrypted Data on Secret Network
          • Key-Value store Developer Tutorial
        • Sealed Bid Auction
          • Sealed Bid Auction Developer Tutorial
        • Confidential Voting
          • Confidential Voting Developer Tutorial with SecretPath
        • VRF
          • Implementing VRF into any EVM Contract
          • VRF Developer Tutorial
          • Performance figures of SecretVRF vs competitors
          • Using encrypted payloads for VRF
          • Converting from Chainlink VRF to Secret VRF in four steps
        • Confidential Document Sharing
        • Tokens
          • From EVM to Secret
      • Supported Networks
        • EVM
          • EVM Mainnet
          • EVM Testnet
          • Gateway Contract ABI
        • Secret Gateway
          • SecretPath mainnet (secret-4) contracts
          • SecretPath testnet (pulsar-3) contracts
    • 🙌Solana Developer Toolkit
      • Usecases
        • Storing Encrypted Data on Secret Network
          • Key-value Store Developer Tutorial
        • VRF
          • VRF Developer Tutorial
      • Program IDs
        • Solana Mainnet & Testnet
        • Gateway Contract IDL
  • 🤫Overview, Ecosystem and Technology
    • 🚀Secret Network Overview
      • The SCRT coin
      • Private Tokens
      • Use Cases
        • Decentralized Finance (DeFi)
        • Art And Digital Media
        • Gaming
        • Data Privacy
        • Payments And Transactions
        • Communication
      • The technology
      • History
      • Roadmap (Core development)
        • Secret 2.0
      • Where To Buy SCRT?
      • Using the Testnet
    • 🐸Ecosystem Overview
      • Wallets
      • Applications
      • Explorers & tools
      • Funding
        • SCRT Labs Grants
        • Dilutive funding/VC raise
        • Community Pool
        • Developer bounties
          • SCRT Labs bounties [on-hold]
          • CCBL [on-hold]
          • CCR [On-hold]
        • Application specific
          • Shade Grants
      • Contributors & Entities
        • Validators
        • SCRT Labs
        • Secret Foundation
        • Secret Committees
          • Support
          • Governance
      • Secret Network Dictionary
  • 🔧Infrastructure
    • 🔓Use SecretCLI
      • Secretcli vs. Secretd
      • Install
      • Configuration
      • Address Types
      • Key Types
      • Generating Keys
      • Viewing Keys
      • Query Transactions
      • Send Tokens
      • Multisig Keys
      • Multisig Transactions
      • Transaction Broadcasting
      • Fees & Gas
      • Fee Distribution
      • Secret Contracts
      • Slashing
      • Minting
      • Delegating
      • Restake
      • Nodes
      • Governance
        • Creating Governance Proposals
        • Query Proposals
        • Deposits
        • Voting
    • 🔐Use Ledger hardware wallet
      • 🔐Ledger with SecretCLI
    • 🖥️Running a node/validator
      • Setting up a node/validator
        • Hardware setup
          • Hardware Compliance
          • VPS/Bare-Metal Compliance
            • Leaseweb Setup
            • PhoenixNAP Setup
            • Psychz Setup
            • nForce Setup
            • Vultr Setup
            • OVHCloud Setup
            • Microsoft Azure Setup
          • Patching your Node
          • Enclave verification
          • Registration troubleshooting
        • Testnet Setup
          • Install SGX
          • Install secretd
          • Setup Full Node
          • Testnet State Sync
          • Becoming a Testnet Validator
          • Installing CLI & Creating A New Address
        • Mainnet Setup
          • Install SGX
          • Install secretd
          • Setup Full Node
          • Quicksync / Snapshot
          • Statesync
          • Becoming A Validator
          • Installing CLI & Creating A New Address
      • Maintaining a node/validator
        • Slashing information
        • Migrating a Validator
        • Troubleshooting
        • Validator Backup
        • Server security
          • SSH authentication
          • Server configuration
          • Uncomplicated-Firewall (UFW)
          • Local CLI
        • Node Monitoring
          • Prometheus
            • Environment Preperation
            • Install Node Exporter
            • Install Prometheus
            • Configuring Prometheus
          • Grafana
            • Install Grafana
            • Grafana Dashboard
            • Next Steps
          • Docker
            • Install Docker
            • Configuration
            • Start Containers
            • Grafana Dashboard
            • Application Ports
            • Stop Containers
          • Goaccess
            • Install Goaccess
            • Setup Goaccess
        • Helpful commands
          • Query Validators
          • Bond Tokens
          • Withdraw Rewards
          • Query Delegations
          • Unbond Tokens
          • Query Unbonding-Delegations
          • Redelegate Tokens
          • Query Redelegations
          • Query Parameters
          • Query Pool
          • Query Delegations To Validator
      • API Noderunning
        • Running Multiple Nodes on the Same Server
        • Node Loadbalancing using Nginx
          • Setup Nginx
          • Example Nginx config
        • Using Auto heal to improve cluster uptime for Nginx
      • Sentry and Archive nodes
        • Mantlemint
        • Sentry Nodes
        • Archive Nodes
    • ⛓️IBC Relayers
      • Hermes
      • RLY
      • IBC channel database
    • 🆙Upgrade Instructions
      • v1.13
      • v1.12
      • v1.11
      • v1.10
      • v1.9
      • v1.8
      • v1.7
      • Shockwave Omega v1.6
      • v1.5
      • Shockwave Delta v1.4
      • Shockwave Delta v1.4 (Testnet)
      • Shockwave Alpha v1.3
      • Cosmovisor
      • Vulcan Network Upgrade (OLD)
    • ☠️Postmortems
      • SNIP-20 leaks
      • xApic
      • Secpk-Verifications Bloat
      • Earn Contract Exploit
      • Testnet Halt 95
    • ✍️Contribute to the documentation
      • Report Bugs
      • Suggest Enhancements
      • First Contribution Guide
      • Pull Request Templates
        • Update Documentation
        • Bug Fix
        • Improve Performance
        • Change Functionality
      • Style Guide
    • 🌊Versioning & Changelog
      • Secret Network v1.13
      • Secret Network v1.12
      • Secret Network v1.11
      • Secret Network v1.10
      • Secret network v1.9
      • Secret Network v1.7/1.8
      • Secret Network v1.6
      • Secret Network v1.5
      • Secret Network v1.4 (CosmWasm 1.0)
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  • How to reach consensus for a Secret transaction - The flow of a user's data
  • A private transaction on secret - detailed step by step

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  1. INTRODUCTION
  2. Secret Network Techstack

Private transactions - A quick summary

PreviousSecret Network TechstackNextBlockchain Technology

Last updated 1 year ago

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How to reach consensus for a Secret transaction - The flow of a user's data

The following process is based on how Tendermint works to reach consensus in a standard app chain but with specificity related to the privacy features of Secret Network. Please note that Secret Network is permissionless, validators and nodes can join the network at any time.

  1. Developers write and deploy Secret Contracts which are executed by the validators, the binary for these contracts is public.

  2. Users submit transactions to the mempool — which can include encrypted data inputs

  3. Validators receive encrypted data from users and execute the Secret Contract

  4. During Secret Contract execution:

    • Encrypted inputs are decrypted inside a Trusted Execution Environment

    • Requested functions are executed inside a Trusted Execution Environment

    • Read/write state from Tendermint can be performed (state is always encrypted when at rest, and is only decrypted within the Trusted Execution Environment)

    • Outputs are encrypted

  5. The block-proposing validator proposes a block containing the encrypted outputs and updated encrypted state

  6. At least 2/3 of participating validators achieve consensus on the encrypted output and state following Tendermint BFT

  7. The encrypted output and state is committed on-chain to the specific contract

A private transaction on secret - detailed step by step

  1. Using the Eliptic-Curve Diffie Hellman key exchange (ECDH) the user generates a shared secret from their private key and the Secret Network public key. The network can generate the same shared secret using the user public key and the Network private key (only available within the Trusted Execution Environment (TEE)).

  2. The user then generates a shared tx_encryption_key using HKDF-SHA256 and the shared secret generated in step 1. The pseudo-random HDKF is used to ensure deterministic consensus across all nodes. The random component comes from a 256-bit nonce so that each transaction has its own encryption key, an AES-256-GCM encryption key is never used twice.

  3. After initiating a transaction the user encrypts the input data with the shared transaction encryption key, using an AES-256-GCM authenticated encryption scheme.

  4. The user then sends a single transaction with encrypted input data, gas fee in SCRT, and optionally a SCRT deposit (as required by the contract) to the contract address. The transaction adds a message with the user public key and the used Nonce so that the network can generate the same tx_encryption_key.

  5. Validators receive the transaction in the shared mempool, after the Tendermint check_tx is deemed successful, and take up the data to process the transaction.

  6. Each validator runs on a machine with an Intel SGX compatible CPU. The enclave within this CPU is the trusted component, whereas the process interacting with the enclave locally from the outside is the untrusted component. The encrypted transaction input is passed from the untrusted to the trusted component.

  7. The enclave uses ECDH to derive the same shared secret from the users public key and the networks private key. The network then derives the tx_encryption_key from the public signed nonce and this shared secret using HDKF. Within the trusted component the transaction input is decrypted to plaintext.

  8. The requested contract computation is executed on the plaintext input by the WASMI runtime, which is instantiated within the trusted enclave.

  9. There are several possible outcomes from each computation, all of which occur on-chain simultaneously:

    • The contract state is updated.

    • The transaction output is encrypted for the transaction sender and committed on-chain

    • If present, callbacks to other contracts.

    • If present, send messages to other modules.

  10. The output of the computation is encrypted using the tx_encryption_key and an AES-256-GCM authenticated encryption scheme.

  11. The encrypted output is then returned to the untrusted component of the validator node.

  12. The validator that proposes the current block broadcasts the encrypted output.

  13. Other validators compare their result to that of the block proposer. If more than two-thirds of the current voting power agrees on the result, the proposed block (and all transactions within it) are included in the Secret Network.

Want to learn about Secret transactions in a video format instead? Check out the last part of the Secret Network techstack video series.

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