Secret Network is Moving to Arbitrum Due to Security Risks

Secret Network Proposes Move to Arbitrum Amid AI-Driven Security Risks

Secret Network, a privacy-focused layer-1 blockchain, is planning to migrate from its longtime home on Cosmos to Ethereum layer-2 Arbitrum, citing security risks from artificial intelligence, among other reasons. The network has been running privacy-preserving smart contracts on Cosmos since 2020, but the ecosystem's momentum has waned, and security risks have increased.

According to the Secret team, Arbitrum offers “deep liquidity, tooling, wallet and exchange support, and thousands of builders composing with one another.” In contrast, the team noted that liquidity has thinned on Cosmos, and builders have drifted to other ecosystems. The proposal, which requires a governance vote, follows a bridge exploit in June that resulted in the loss of $4.7 million in bridged assets but did not affect Secret’s native token, SCRT.

The total value locked in the Cosmos ecosystem is around $2 billion, down 88% from its peak during the 2021 bull market. Comparatively, Arbitrum is the leading layer-2 network by total value secured, which is $17.4 billion, according to L2Beat. Secret Network has just $1.3 million in TVL on Cosmos, according to DefiLlama.

SCRT holders did not react well to the news, with the token tanking 24% over the past 24 hours to 4.1 cents, down more than 99% from its 2021 peak, according to CoinGecko. Secret is not the only network to leave Cosmos. In February, privacy-focused blockchain NilChain, built with the Cosmos SDK, left the ecosystem in a move to Ethereum. The Sei Network completed a full Cosmos-to-EVM transition in June, closing down its native Cosmos transaction layer entirely and becoming Ethereum-based. Stablecoin blockchain Noble also announced it was moving from the Cosmos ecosystem to Ethereum in January.

Secret Network'in Arbitrum'a Taşınması ve Güvenlik Riskleri

Secret Network'in Arbitrum'a taşınması, güvenlik riskleri nedeniyle alındı. Eski kodların ve yapay zeka destekli saldırıların artan güvenlik riskleri, Secret ekibinin bu kararı almasına neden oldu. Arbitrum'un “deep liquidity, tooling, wallet and exchange support, and thousands of builders composing with one another” gibi özellikleri, Secret ekibinin Arbitrum'u tercih etmesinde etkili oldu.