Secret Network’s programmable privacy enables non-private tokens to be wrapped into their private and fungible equivalent through the Secret Network Improvement Proposals 2020 ( known as SNIP-20 standard), thereby providing complete confidentiality and anonymity through viewing keys via Secret contract. For example, SCRT can be wrapped into sSCRT(pronounced as secretSCRT) through SNIP-20 standard. Hence, sSCRT is a privacy-preserving and fungible equivalent of SCRT. Whenever you transact using a wrapped token such as sSCRT, the transaction remains private and nobody knows whether you send/receive sSCRT to/from whom.
All native tokens like SHD, SEFI, ALTER, SIENNA are SNIP-20s and have privacy by default, all coins and tokens bridged from other networks like sATOM, sETH and sBNB are also private by default.
Secret Tokens really are the backbone behind the programmable privacy of Secret Network and have various different use-cases.
Learn more about Secret Tokens on the Secret Network website.
Example Of SNIP-20 Privacy
If wallet A sends 100 sSCRT to wallet B this will happen:
Block explorer denotes that wallet A interacted with the sSCRT smart contract (It is not known whether this was a send, buy of NFT, viewing key etc. Amount of tokens is also unknown)
Wallet B will NOT have an interaction listed on chain (aka on the block explorer)
Wallet B can use their viewing key to decrypt the receiving transaction so will see the address of the sender and the amount they got.