How it works We discuss about it today 🤔
In the world of blockchain, there has long been a tug-of-war between privacy and compliance. While public blockchains like Bitcoin are transparent, they aren't always suitable for financial institutions that must keep client data private while following strict laws.
Dusk Network (DUSK) is a Layer-1 blockchain specifically designed to bridge this gap. It provides a secure, decentralized infrastructure where companies can issue and trade regulated financial assets (like stocks or bonds) with absolute privacy and legal compliance.
How Dusk Network Works: The TechnologyDusk isn't just a clone of existing blockchains; it is built from the ground up with several unique "privacy-first" technologies.
1. Zero-Knowledge Proofs (ZKPs) The heart of Dusk is Zero-Knowledge cryptography. Specifically, it uses a system called PLONK.What it does: It allows one party to prove to another that a statement is true (e.g., "I have enough money for this trade") without revealing any other information (e.g., "This is my total balance").
The Benefit: This ensures that while the network can verify a transaction is valid, the actual details—like the sender, receiver, and amount—remain hidden from the public.
2. Segregated Byzantine Agreement (SBA) Dusk uses a unique consensus mechanism called SBA. It is an evolution of Proof-of-Stake (PoS) designed for speed and security.
Three Phases: Every block goes through Block Generation, Block Reduction, and Block Agreement.
Proof of Blind Bid: Validators (called "Block Generators") stake their tokens anonymously. This prevents attackers from knowing who to target to disrupt the network, as the selection process is mathematically randomized and private.
Instant Finality: Unlike Bitcoin, where you might wait for several "confirmations," Dusk transactions are final the moment they are added to a block. This is vital for financial markets where a trade cannot be reversed.
3. The Rusk Virtual Machine (ZK-VM) To support smart contracts, Dusk created Rusk. It is the world’s first virtual machine built entirely on Zero-Knowledge cryptography. This allows developers to create Confidential Smart Contracts, where the logic of the contract is executed privately