Today I saw the news about the loss and seizure of Bitcoin in South Korea, and I couldn't help but think of the core contradiction when institutions operate on Layer 1 chains: the complete transparency of public chains and the rigid need for business secrets by financial institutions are often at odds. Large market makers and hedge funds would never move significant funds in an environment where order flow, positions, and trading strategies are all public. Recently, I have been studying the technology stack of @Dusk and found that its value is very clear — it is not just another replica of a general EVM chain, but rather it resolves the fundamental conflict between 'privacy' and 'compliance' at the protocol level.
Dusk's breakthrough lies in the deep integration of zero-knowledge proofs (ZKP), especially in the design of Confidential Smart Contracts. Unlike the inefficient solutions of traditional chains that attach whitelists, #Dusk adopts a 'Compliance-by-Design' model: transaction data is computed off-chain, and on-chain nodes only verify the integrity of the computation and the legality of state transitions. This not only improves efficiency but also mitigates centralized risks.
More cleverly, it allows the 'right to be forgotten' under GDPR and the immutability of blockchain to no longer be in conflict — personal data is not directly put on-chain; only 'compliance proofs' are recorded on-chain. For the tokenization of real-world assets (RWA), Dusk's XSC standard redefines the clearing logic: compliance becomes a prerequisite for transactions rather than a post-audit. Atomic-level compliance checks directly reduce reconciliation costs, bringing the complex processes of traditional finance onto the chain.
For me, this represents a qualitative change in Web3: Institutional DeFi can meet regulatory requirements while preserving privacy, without having to choose between trust and decentralization. Dusk has proven through cryptography that privacy protection and regulatory access can coexist, which is the truly implementable institutional-level on-chain financial infrastructure. $DUSK
