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Introducing Shinobi Protocol, a Privacy-Safe, Trustless Bridge

source-logo  coinquora.com 12 September 2021 12:56, UTC
  • Shinobi will be a part of the Secret Bridges to $ETH, #BSC, $XMR, and other crypto.
  • Bitcoin users can now send their coins to the Secret Network.
  • The demand for tokens with bitcoin links has led many protocols to add conversion/swap functions.

Secret #DeFi has added native Bitcoin to its digital currency portfolio with the Shinobi Protocol, which is a privacy-secured trustless bridge for $BTC.

As it becomes #Web3’s privacy and liquidity hub in October, Shinobi will join the Secret Bridges to $ETH, #BSC, $XMR, and beyond. This latest Secret Bridge unties the full ability of Bitcoin while maintaining security and privacy. Secret Bridge also allow users to engage in the Secret #DeFi ecosystem’s privacy-first model.

As a result, Bitcoin owners can now transfer their BTC to the Secret Network. They can also enjoy more privacy protections as well as other benefits such as financial returns.

What exactly is a Shinobi?

Shinobi is a mechanism for creating Secret Bitcoin (SBTC), a SNIP-20 token backed by bitcoin on the Secret Network.

Therefore, this Shinobi protocol keeps Bitcoin private keys in the Trusted Execution Environment (TEEs), boosting the Secret Network’s privacy and security.

Bitcoin Protocol Anonymity

To ensure privacy in every step of the process;   

  • The Shinobi protocol is designed to support standard Bitcoin transactions. Since Taproot is not available on the Bitcoin network, Secret Network transactions will occur the same way as any other Pay-to-Witness-Public-KeyHash (P2WPKH) transaction. Hence, there are no specific features that will set it apart from others.
  • The deposit address is unique for every transaction — a deposit/withdrawal transaction will have only one input, ensuring that only the sender of the transaction can see it. This method requires that a Bitcoin withdrawal transaction have exactly one UTXO (i.e., no “change” output). Thus, deposits and withdrawals amount the same, excluding mining fees.
  • It is possible to claim Secret Bitcoin for bitcoin by burning them and citing a Bitcoin address.
  • The Bitcoin header receives a Shinobi token in the secret contract from the most recent block.

In summary, Many protocols have added similar functions to convert/swap tokens since there is such a high demand for tokens linked to bitcoin.