Shinobi is a protocol for generating Secret Bitcoin (SBTC), an SNIP-20 token on Secret Network backed by bitcoin (BTC). SBTC is pegged to BTC on a 1:1 ratio. Conversion between BTC and SBTC is facilitated through Shinobi Gateway, a trustless "bridge" with built-in privacy. Transactions sent through Shinobi Gateway to Secret Network become completely private.
Key Features of Shinobi
Privacy Solution for Bitcoin
While Bitcoin transactions are public, SBTC can be sent with complete privacy, with the token built on Secret Network.
Shinobi Gateway shuffles incoming bitcoins and replaces them with different coins, ensuring privacy of the new coins as they exit the gateway. Moreover, transactions sent to/from Shinobi Gateway are also conducted privately.
Also Read: Privacy For Bitcoin
Non-Custodial Secure Bitcoin Bridge
You can take bitcoin on the Bitcoin blockchain and use it as an underlying asset to generate another token on a different blockchain, with the two tokens exchanged on a 1:1 ratio. This mechanism, which is also adopted by Shinobi, is often referred to as "bridge". A typical bridge would have a custodian - whether it be a human or an organization - manage the underlying asset. However, the existence of a custodian could expose the asset to a potential loss/theft due to arbitrary actions on the part of the custodian or some malicious actor.
Shinobi provides a secure solution for managing the underlying asset by leveraging a unique smart contract that protects sensitive data on Secret Network. The smart contract allows for autonomous management of the asset, with any custodian eliminated in the process.
Also Read: Next Generation Secure Bridge For Bitcoin