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Possible typo in Graypaper #503

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giorgionocera opened this issue Jan 30, 2023 · 0 comments
Open

Possible typo in Graypaper #503

giorgionocera opened this issue Jan 30, 2023 · 0 comments

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@giorgionocera
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With respect to the graypaper, available at https://scrt.network/graypaper, maybe in code at line 123 should it be Secret Auctions instead of Secret Actions?

For simplicity, I write down the short sentence, but I also attach the entire code below:

[...]
Secret Auctions are another Secret Contract created in 2020. When a user interacts with an exchange, individuals should be able to query multiple OTC exchanges for their price, and then execute the trade based on the best price. Throughout this entire process, OTC desks shouldn’t know each other’s bids. If the OTC exchanges are aware of each other’s bids then there is potential for collusion against the user. Secret Actions use Secret Contracts to hide this type of vulnerable data in a neutral and programmatic fashion - creating a neutral program that can be trusted by mutually distrustful and privacy-aware entities. Secret Auctions have the potential to turn into Secret Dark Pools which would be a significant contribution to the DeFi ecosystems of the blockchain domain.
[...]

Secret Contracts allow developers to create contracts with control over what subsets of data are encrypted. Due to the completely transparent nature of public blockchains, there has never been a protocol that allows for granular control over data transparency as with the Secret Network protocol. The first proof-of-concept use case to rise to the surface was SafeTrace. SafeTrace is a privacy-preserving contact tracing application that leverages the TEEs of Secret Network to enable summarization of sensitive data, individual high-risk interaction awareness, and data set research empowerment without ever exposing an individual's private data. Computations are run within an SGX enclave, with summary results as output - safeguarding against any single individual's data sovereignty being abused. Next came simple Secret dApps such as SecretPoker and rock-paper-scissors. This allows users to play against each other with assurance that no one is able to front-run data or modify decision making due to data that should not be publicly visible within a game environment. Next, the SNIP-20 standard was created which enabled the creation of private, fungible tokens using Secret Contracts. Combining the programmability of ERC-20s with the privacy of Zcash or Monero, Secret Tokens unlock important use cases and create new value. This allowed tokens not native to Secret Network to be able to gain wrapped privacy properties enabled by Secret Contracts using IBC. Examples of SNIP-20 tokens were secretEthereum, secretDai, secretLink, secretMKR, etc. Secret Auctions are another Secret Contract created in 2020. When a user interacts with an exchange, individuals should be able to query multiple OTC exchanges for their price, and then execute the trade based on the best price. Throughout this entire process, OTC desks shouldn’t know each other’s bids. If the OTC exchanges are aware of each other’s bids then there is potential for collusion against the user. Secret Actions use Secret Contracts to hide this type of vulnerable data in a neutral and programmatic fashion - creating a neutral program that can be trusted by mutually distrustful and privacy-aware entities. Secret Auctions have the potential to turn into Secret Dark Pools which would be a significant contribution to the DeFi ecosystems of the blockchain domain. PadLock helps artists monetize creative work via the decentralized web. Users can buy or sell access to exclusive content hosted on IPFS and Filecoin. The app will generate unique encryption and decryption keys and store them in the encrypted state of a privacy-preserving smart contract on Secret Network. In other words, PadLock uses Secret Contracts to enable programmatic contract interactions that unlock access control via decryption of viewing keys. Secret Non-Fungible Tokens (NFTs) will allow for the creation of NFTs that have verifiable ownership of goods and experiences without ever exposing the underlying owner or their data - all made possible with Secret Contracts. Secret Automated Market Makers (AMMs) will help prevent front-running, a problem that has plagued DeFi since its inception. Due to the public nature of blockchains, front-running attacks happen all the time. Because users can see transactions in the mem-pool and their corresponding gas prices before a block is mined, it is easy for attackers to submit a transaction with a higher gas price, which would result in their own transaction being mined first. The result is an unfairly executed bid or ask with the foreknowledge of the incoming trade - resulting in arbitrage profit due to the modification of supply and demand on a microscale that ultimately the user has to pay for. Because a Secret AMM would keep the mempool private, front-running would be impossible by default.

Thank you!

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