Dusk’s confidential settlement rails enable the network to process transactions privately while staying fully compliant with regulations. This allows users to move assets securely, protect sensitive information, and follow the rules.
Unlike typical blockchains, where all activity is visible, Dusk uses advanced cryptography to make transfers confidential yet verifiable and compliant. The system has two modes: Phoenix, for private transactions that hide balances, amounts, and counterparties while still proving correctness to auditors, and Moonlight, for when transparency is required to meet regulatory obligations.
The DuskDS layer manages settlement, consensus, and data availability. Transactions are verified cryptographically and finalized using deterministic consensus, ensuring reliability for high-value payments and tokenized assets.
Zero-knowledge proofs (ZKPs) are used to confirm transactions without revealing private details. For example, the network can verify that an account has sufficient funds or that rules are followed without exposing amounts or participants.
Eligibility checks are enforced directly in the settlement process through KYC, AML, and permissioning, reducing the need for separate compliance steps while keeping everything auditable.
From a developer’s perspective, the rails are programmable and compatible with smart contracts. Contracts can automate payments, asset transfers, or corporate actions using Phoenix for confidentiality and Moonlight for necessary reporting. Assets can move between DuskDS and DuskEVM while maintaining privacy, ensuring alignment between settlement and execution layers.
The Rusk Universal Event System (RUES) tracks every transaction, creating verifiable events for audits, monitoring, and dashboards. This allows institutions to observe activity, demonstrate compliance, and track assets without exposing sensitive information.
These rails support sophisticated financial products such as privacy-focused trading or tokenized asset marketplaces. By combining privacy, compliance, stability, and programmability, Dusk bridges real-world financial needs with blockchain technology, making it ideal for regulated financial applications.
Confidential settlement rails are a core feature of the Dusk Network, enabling secure, verifiable, and private transactions for developers and institutions alike.
