Dusk does not utilize generic blockchains, instead focusing
on a carefully chosen set of building blocks to allow for compliant, privacy
preserving and high performance financial applications.....Dusk is an
architected blockchain built from scratch with the goal of implementing real
world financial infrastructure. Every component supports the overall
architecture of the blockchain and is built specifically for its assigned job
on the blockchain.
Privacy as a Core Architectural Principle
The Dusk Network's primary and essential feature is Privacy.
While the sender, recipient, and amount transferred in every transaction are
kept private by default and are not recorded publicly on-chain. Privacy is
accomplished through native zero-knowledge proof primitives that are integrated
into the protocol itself.
The primary concern with respect to Privacy on Dusk is that
it provides a selective rather than total trade off - The Dusk Network has a
functionality of ‘Selective Disclosure’, whereby when information is to be
validated by an Authorised Third Party (for example, a Regulator or Auditor),
the chosen information can be validated without having to disclose that
information publicly, thereby allowing Dusk to meet regulatory obligations and
account for User Confidentiality.
2 . The DUSK Native
Asset
DUSK serves as a base unit of value and provides many uses
beyond just simple value exchange. It provides both the exclusive economic
asset of the network as well as providing security to the network. In addition
to being used for staking and paying transaction fees, it is also used in the
consensus mechanism of the network and creates the proper alignment between
network security and economic incentives.
With one single and privileged asset, Dusk prevents
fragmented security frameworks and provides a clean and auditable economic
system. This helps Dusk create strong Sybil resistance and guarantees the
long-term viability of Dusk's ecosystem as a result.
3 . Consensus and
Network Security
A consensus mechanism is an essential part of Dusk. Dusk’s
consensus mechanism is a privacy-preserving proof-of-stake mechanism with
cryptographic leader selection - rather than public visibility. The block
proposal process has a unique set of rules that allows for the generation of
blocks without exposing the names of proposed block generators, thereby
protecting them against targeted attacks, censorship, and front-running.
The DUSK tokens are staked by those that participate in the
consensus to guarantee security for the network using committee based agreement
to allow finality (settlement) to happen quickly with solid Byzantine fault
tolerance. Therefore, the network will be able to support the requirements
needed by financial-grade applications.
4 . Smart Contracts
and the Rusk Virtual Machine
The Rusk VM (Rusk Virtual Machine) is responsible for
executing smart contracts on Dusk and was created especially to enable
zero-knowledge proof-based verification and allow developers to create
applications that can validate intricate conditions without disclosing any of
the underlying data.
Rusk is quite different from conventional virtual machines
because it creates a direct integration between cryptographic verification and
execution logic. As a result of this direct integration, private DeFi,
compliant asset issuance and secrecy in financial workflows can all be
maintained in a deterministic and secure manner while achieving full usage
efficiency.
5 . Transaction Model
and State Management
Dusk operates a privacy-preserving transaction model which
allows for accurate balance accounting without the use of the public ledger.
The transfer of assets remains in a pending state until the recipient expressly
accepts it; thereby avoiding any premature changes in balances and guaranteeing
accuracy of those balances.
The state transitions that occur through Dusk's
protocol-level contracts are tightly regulated, thereby minimising systemic
risks and allowing for simplified verification. The structure of these
transactions increases their auditability while maintaining confidentiality.
6 . Compliance by
Design
The fact that Dusk has a foundation built on its
compliance-aware architecture is one of its most important and distinguishing
features; Dusk was designed to be able to work with many regulatory frameworks
– for example, when it comes to security token issuance, lifecycle management,
and institutional reporting responsibilities.
Dusk, through use of selective disclosure and cryptographic
attestations, can allow for compliance in a manner that does not compromise
either decentralization or privacy; therefore, it has an almost exclusive
capability to connect traditional financial institutions and the blockchain.
7 . Interoperability
and Extensibility
The Dusk Network is designed for interoperability with other
blockchain ecosystems. By utilizing trusted or trust-minimized interoperability
solutions, Dusk can act as a privacy-preserving sidechain or execution layer
for existing Layer-1 networks.
The extensibility of the Dusk Network allows for a large
variety of applications to be hosted on the network, while still maintaining
its primary focus of confidential, compliant finance.
The components that form the Dusk Network are not simply a
collection of distinct features but rather they work together as part of a
unified structure to create a complete solution. All the elements (privacy,
consensus, smart contracts, compliance, and incentivisation) have been
interwoven into one cohesive purpose-built system.
Through creating these components in a native form rather
than as a type of extension or add-on, Dusk has created a Blockchain platform
designed to support the 'real money' Financial Markets in a secure and private
manner at scale.
