DuskTrade is not designed to push everything onchain. The split between onchain and offchain is deliberate.
Order matching in DuskTrade happens offchain. This is a regulatory and performance decision. Matching engines require low latency, deterministic ordering, and the ability to enforce venue rules. Keeping this logic offchain aligns with how licensed trading venues already operate and avoids leaking sensitive order book data.
What moves onchain is the part that must be final and auditable. Settlement and ownership records are written to DUSK. Dusk’s base layer is used because it can enforce settlement finality while supporting confidentiality where required. Once an ownership change is settled on DUSK, it becomes a verifiable state transition, not a database entry that can be altered later.
This separation is shaped by regulation. Trading venues are expected to prove who owns what, when, and under which rules, without exposing every trading intention publicly. DuskTrade’s architecture reflects that. Offchain systems handle speed and discretion. Onchain systems handle truth.
Why DUSK specifically for settlement:
● Finality secured by validator staking
● Cryptographic audit trails rather than trust-based records
● Compatibility with confidential execution for regulated assets
Two systems must stay in sync. But for regulated markets, this architecture is not optional. It is required.
