Dusk started in 2018 with a very human problem that most blockchains pretend is not a problem at all
Real finance is full of sensitive information
Who is buying
Who is selling
How much is moving
What strategy is being used
Which institution is exposed
What collateral sits where
In traditional markets this information is protected by design
Not because people want secrecy for bad reasons
But because markets break when every move is broadcast to the world
Now look at most public blockchains
They ask finance to live on a glass table
Every balance visible
Every transfer traceable
Every relationship linkable
That is not how serious markets work
So Dusk set out to build something that feels closer to real settlement rails
A Layer 1 where confidentiality is natural
But where proof is always available when rules require it
That theme runs through the entire Dusk documentation today where Dusk is described as a privacy blockchain built for regulated finance with compliance and confidentiality living together instead of fighting each other.
And the biggest update is this
Dusk is not only an idea anymore
Mainnet rollout was publicly communicated in late 2024 and reached the January 7 2025 milestone where the mainnet cluster moved into operational mode and the migration path for ERC20 and BEP20 DUSK to native mainnet was launched.
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THE HEART OF DUSK
DUSKDS IS BUILT LIKE A SETTLEMENT LAYER FIRST
When people hear Layer 1 they often think about smart contracts first
Dusk thinks about settlement first
DuskDS is the base layer that decides what is final
It is where value movement is coordinated
It is where the system enforces the rules that keep markets stable
This is important because financial infrastructure is judged by one thing before anything else
Can it settle reliably
Can it settle fast
Can it settle with finality you can trust
That is why DuskDS uses a proof of stake consensus design called Succinct Attestation
The docs describe it as a permissionless committee based PoS protocol with randomly selected provisioners who propose validate and ratify blocks and it is explicitly described as providing fast deterministic finality suitable for financial markets.
That wording matters
Deterministic finality is basically Dusk saying
When a block is finalized it should feel like settlement
Not like a suggestion that might change later
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THE MOST PRACTICAL DESIGN CHOICE DUSK MADE
TWO NATIVE TRANSACTION MODELS THAT MATCH REAL WORLD NEEDS
Dusk does not force you into one style of transaction
Because finance is not one style of transaction
Some activity must be public
Some activity must be private
So DuskDS supports two native ways value can move
And this is not a bolt on feature
It is core to the chain
MOONLIGHT
Moonlight is public and account based
It is meant for transparent flows where visibility is useful or required
PHOENIX
Phoenix is shielded and note based
It is built around zero knowledge proofs so the network can verify correctness without exposing private details
The DuskDS docs state this clearly
On DuskDS value can move in two native ways Moonlight public account based transfers and Phoenix shielded note based transfers using zero knowledge proofs.
Now here is the part that feels like real engineering
Dusk does not treat these two models like separate worlds that need awkward bridging
The Transfer Contract is the coordinator
The core components docs explain that transactions in DuskDS are managed by the Transfer Contract and it supports both Phoenix and Moonlight to handle transfers of the native currency gas payments and it even serves as a contract execution entry point.
This is a big deal
Because it means Dusk is building privacy and transparency into the same settlement engine
So users and applications can choose what fits the situation without leaving the network
In simple human language
Dusk is saying
We will not force the entire world to live in public exposure
And we will not force the entire world into full darkness either
We will build both
And we will make the system strong enough to handle both
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WHY THE ARCHITECTURE CHANGED
DUSK IS EVOLVING INTO A MODULAR MULTILAYER STACK
Another major update in the Dusk storyline is the move toward a modular multilayer architecture
The official DuskEVM documentation explains that DuskEVM leverages the OP Stack and supports EIP 4844 style blobs and that while it uses OP Stack architecture it settles directly using DuskDS rather than Ethereum meaning DuskDS becomes the settlement and data availability anchor.
Then in June 2025 Dusk published a dedicated piece describing its evolution to a multilayer architecture with a settlement layer DuskDS beneath an EVM execution layer DuskEVM and a forthcoming privacy focused layer direction.
If you want the emotional meaning of this shift it is simple
They’re trying to stop being only a single chain story
And become a financial stack story
Because real finance needs different lanes
Settlement lane
Execution lane
Privacy lane
Identity lane
So the architecture is being shaped to let each lane grow without breaking the others
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DUSKEVM
WHY EVM COMPATIBILITY IS NOT ABOUT HYPE IT IS ABOUT ADOPTION
A lot of people treat EVM compatibility like a marketing checkbox
But for regulated finance it is a survival move
Institutions and developers do not want to rebuild everything from zero
They want familiar tooling
Auditing workflows
Known developer talent
Mature infrastructure
DuskEVM is presented as the place where that familiarity lives while still using DuskDS for settlement and data availability.
And this is where Dusk is trying to be clever
Instead of saying we will fight the EVM world
They are saying we will bring the EVM world onto a settlement layer that was built for compliance ready privacy
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HEDGER
THE PRIVACY ENGINE THAT PUSHES CONFIDENTIALITY INTO THE EVM WORLD
This is one of the most important recent developments
In June 2025 Dusk introduced Hedger as a privacy engine purpose built for the EVM execution layer and described it as bringing confidential transactions to DuskEVM using a novel combination of homomorphic encryption and zero knowledge proofs enabling compliance ready privacy for real world financial applications.
That sentence is loaded with meaning
Homomorphic encryption is about doing computations on encrypted values
Zero knowledge proofs are about proving correctness without revealing secrets
Put them together and the vision becomes powerful
Applications can handle balances transfers and certain computations without exposing raw values to the public
While still producing proofs that the network and auditors can trust
Human takeaway
Dusk is not only saying privacy for transfers
They are trying to build privacy for execution
That is where real financial products start to become possible
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CITADEL
IDENTITY WITHOUT TURNING USERS INTO PUBLIC RECORDS
Regulated finance is not only about transfers
It is also about identity requirements
Access rules
Eligibility checks
Selective disclosure
Dusk’s Citadel documentation describes Citadel as a zero knowledge proof based self sovereign identity management system where identities are stored in a trusted private manner using the Dusk blockchain and it outlines multiple roles in the protocol design.
And the academic paper describing Citadel explains the motivation in a way that fits Dusk’s whole philosophy
SSI systems often store rights publicly in ways that can still be traced
Citadel aims to privately store rights and allow proofs of ownership in a fully private manner.
This matters because it is the difference between
Yes you can comply
And
Yes you can comply without exposing your whole identity graph to the world
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THE NETWORK LAYER THAT MOST PEOPLE IGNORE
KADCAST AND THE REALITY OF MOVING DATA FAST
Settlement and privacy both fail if the network layer is weak
Dusk has an open source implementation of Kadcast described as a UDP based peer to peer protocol where peers form a structured overlay for efficient dissemination.
There is also a third party security audit writeup focused on Kadcast as Dusk’s networking protocol describing review of implementation logic and protocol compatibility checks.
The reason this matters is simple
You can have the best cryptography in the world
But if blocks and proofs cannot propagate efficiently the market experience collapses
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TOKENOMICS
SECURITY THAT IS DESIGNED TO LAST DECADES NOT MOMENTS
DUSK is the token that secures participation and incentives on the network
The official tokenomics documentation lists the key metrics
Initial supply 500 million DUSK
Total emitted supply 500 million DUSK emitted over 36 years to reward stakers on mainnet
Maximum supply 1 billion DUSK combining both components
And it notes that ERC20 and BEP20 DUSK are migrated to native mainnet tokens using a burner contract.
This long emission schedule is not just economics
It is a cultural signal
They’re choosing long term network security
Not short term inflation fireworks
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WHAT MAINNET CHANGED
FROM THEORY TO A NETWORK YOU CAN ACTUALLY JOIN
The December 2024 mainnet rollout communication included clear operational steps and tied the rollout to the January 7 milestone and the launch of the mainnet bridge contract for migration.
For builders and stakers this changes everything
Because now incentives are real
Consensus participation is real
Settlement is real
And design decisions are tested under real usage instead of only being debated on paper
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WHY DUSK IS AIMED AT RWA AND COMPLIANT DEFI
BECAUSE REAL ASSETS NEED RULES AND CONFIDENTIALITY
Tokenizing an asset is easy
Operating a market around that asset is the hard part
A compliant market needs
Eligibility checks
Restricted transfers
Audit trails
Confidential balances
Private settlement where appropriate
And deterministic finality so participants can trust settlement outcomes
Dusk is building pieces for all of these
Not only with Phoenix and Moonlight transaction models
Not only with deterministic finality through Succinct Attestation
But also with identity primitives via Citadel
And confidential execution ambitions via Hedger in the EVM lane
This is why Dusk positions itself for regulated finance rather than general purpose everything
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THE RISKS YOU SHOULD RESPECT
A deep research view must include what can go wrong
Complexity risk
Dusk is building a stack not a single feature
Settlement layer plus dual transaction models plus EVM execution plus privacy engine plus identity layer
That is powerful
But complex systems demand strong documentation audits and careful upgrades
Adoption risk
Regulated finance moves slowly
Integrations happen on legal timelines not crypto timelines
Privacy usability risk
Every privacy system increases UX burden
Proof generation key handling viewing permissions
Hedger is clearly a step toward making this feel smoother but the tradeoffs do not disappear
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THE HUMAN SUMMARY
Dusk is trying to build something the industry has been missing
A blockchain that feels like a place where real finance can actually live
Not because it is faster than everyone
But because it is designed around how finance behaves in real life
Some activity must be visible
So Moonlight exists
Some activity must be confidential
So Phoenix exists
And the system connects both through a Transfer Contract that manages transactions and value movement across models
Then Dusk evolves into a modular architecture where DuskDS anchors settlement and data availability while DuskEVM brings familiar tooling and Hedger brings confidential execution into that EVM environment
And identity is not treated like a public scar
Citadel is designed so users can prove what they need to prove without turning their whole life into public metadata
That is the Dusk vision
Privacy that feels normal
Compliance that feels possible
And settlement that feels final