DuskEVM's mainnet launch this week marks a pivotal advancement for Dusk, introducing confidential smart contracts that allow code execution with privacy protections directly on an EVM-compatible layer.
In Dusk's ecosystem, confidential smart contracts mean deploying Solidity code where inputs, outputs, and states remain hidden using zero-knowledge proofs, yet the contract's logic and compliance can be verified without exposing underlying data.
This innovation matters for Dusk as it empowers developers to create applications for regulated sectors, ensuring that sensitive financial operations on Dusk's Layer 1 stay private while meeting audit standards.
DUSK tokens play a crucial role in this setup, as they are used to pay gas fees for executing these confidential smart contracts on DuskEVM and to stake for network validation, securing the overall infrastructure.
Consider a bank integrating DuskEVM to run a confidential lending contract, where borrower details are shielded but loan terms are provably enforced and auditable on Dusk's chain.
That said, implementing confidential smart contracts on Dusk involves higher computational costs, potentially impacting scalability for DuskEVM applications during peak usage without careful gas optimization.
