Enigma is one of the recent crypto platform attempting to solve the issue of blockchain privacy. The team believes giving access to privacy and data storage while remaining scalable is the future of cryptocurrency. Enigma is trying to extend Ethereum’s concept of Smart Contracts by introducing secret contracts.
Secret contracts operate off-chain, which means their execution does not occur on the Ethereum blockchain. Instead, all pieces of related data are sorted, encrypted, and eventually distributed redundantly among Enigma nodes. Enigma goes by the ticker symbol ENG forayed the cryptocurrency space in September 2017.
This guide will explain what Enigma is all about, the purpose it is designed for, the team behind it, the way it works, and the various uses and applications.
What Is Enigma Designed For?
Enigma made its mark as a decentralized computing platform after being launched by a team of MIT graduates. This research project has gained a place as an American start-up in the top 100 cryptocurrencies of the world. Enigma’s success is because of its cheaper solutions to storage on the blockchain.
The team designed Enigma to build better privacy by keeping all third parties out of the picture. The network can easily connect with blockchains to offload public data and transactions. All this is done while keeping private data on the Enigma network through the use of secret contracts.
Who Is The Team Behind Enigma?
Enigma is created by a team comprising of MIT Sloan and MIT lab fellows and other seasoned software engineers. Guy Zyskind is Enigma’s CEO and co-founder. He has experience in software development and also has an M.S. from MIT. The project’s CPO and another cofounder is Can Kisagun who graduated from MIT’s Sloan School of management.
Besides them, there are a lot of other people involved in the team. Enigma has few impressive investors as well, like Floodgate, the Digital Currency Group, Flybridge Capital Partners, and lastly MIT.
How Does Enigma Work?
Enigma makes use of multi-party computation (MPC) to enable data computation through distributed nodes. This allows encrypted data to be divided into several networks and ensures its secure storage and access. In the Enigma network, there is never a node with complete access to the data. This helps in ensuring privacy and security.
All transactional process is performed through secret sharing on Enigma. Computation is carried out by distributing data bits among a group of nodes. These bits are meaningless on their own and no single network ever has access to all bits. A security deposit is placed in Enigma’s private contract by each of these nodes. The deposit is forfeited when there is inaccuracy in calculations. This is how Enigma maintains honesty about computations.
What Are Current and Future Applications of Enigma?
There are multiple use cases of the ENG token within the Enigma token. It is primarily a utility token that is used towards payments and rewarding incentives. Enigma as a crypto platform has various functionalities as well. Its foremost use is in the corporate sector where its facility for providing enhanced privacy for public blockchain networks is greatly coveted.
Companies can now have a platform to store and exchange their data efficiently without requiring private blockchains. Few noteworthy use cases of Enigma include:
Healthcare: It allows healthcare companies to store and send data to researchers without worrying about privacy concerns.
Credit: The platform can build a decentralized system of finance and banking without additional exposes in the data shared across the lender base.
IoT: The decentralized marketplaces built on the Enigma platform will be the perfect place for the growth of the Internet of Things. This shall also inflate the price value of ENG token as the number of use cases grow.
Enigma has built several projects in the past that has led to it being called one of the greatest decentralized blockchains ever. One of the recent projects named “Catalyst” allows one to create a crypto hedge fund and make a cross-chain transfer, without having to resort to any third party.
Enigma is also working on “Discovery”, which will allow Secret Contracts to be used for making sensitive transactions without the need for taking things off-chain. The team is also building a second concept called “Voyager” that has a primary function of providing enhanced privacy facility to its Dapps.
“Valiant” is another project that is all set to be launched. This is a network update, which is aimed at creating an open and secure consensus within Enigma’s blockchain. Another project that is expected to be released soon is “Defiant” that shall help in bringing complete autonomy in the Enigma Chain.