Dusk Network is a Layer-1 that is the next-generation blockchain designed to provide privacy, compliance, and real-world asset support to decentralized finance by connecting traditional financial markets to that of decentralized finance. Dusk does not focus solely on decentralization or high throughput, as even a limited number of other blockchains do: the purpose of its mission is to provide institutions with the ability to issue, trade and settle regulated financial instruments on-chain to real-life legal and functional standards.
The basic architecture is built on a modular architecture and is aimed at meeting institutional requirements. DuskDS is the base layer that is used to carry out consensus, data availability, native bridging, and settlement with great privacy and performance. To add to this, DuskEVM provides full Ethereum Virtual Machine support and customers can use well-known tools to deploy Solidity smart contracts and DeFi applications. An upcoming DuskVM layer will be able to run high-privacy programs where zero-knowledge transaction models are used. The native DUSK is used as token to unify all layers and fees, staking and governance.
Dusk Network
The design of Dusk focuses on privacy. It is possible to privatize transactions by default with zero-knowledge proofs (ZKPs) and homomorphic encryption, which is especially noticeable in the case of auditability and homomorphic encryption to regulators or auditors. This allows secret trading, loaning and settling regulated assets without the sensitive market information leaking out.
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One of the network strengths is that the network has integrated compliance at the protocol level by means of strategic alliances. Dusk incorporates regulation compliance into the protocol by combining with licensed financial infrastructure providers such as NPEX, a Dutch stock exchange, with numerous regulatory licenses. This enables native issuance, trading and settlement of tokenized securities, bonds and funds under a common legal system- which not very many other blockchains can provide.
Dusk has also implemented industry standard interoperability and data protocols with other partners such as Chainlink, to facilitate the cross-chain transfer of assets and high integrity market data feeds. This liquidates controlled assets issued on Dusk out to wider DeFi ecosystems without compromise.
Dusk Network
The practical aspect of this network is not restricted to theory: live public testnets, such as DuskEVM, allow builders to test smart contracts that are compliant and confidential transaction infrastructure, such as Hedger. At the same time, the base layer is being enhanced to enhance data availability and efficiency as a base to a completely operational and compliant financial stack.
The relationship between privacy and regulation can be rather contradictory in times when the former is prioritized, and the latter is regarded as more important, yet, the combined nature of Dusk as privacy and auditability, compliance and programmability, institutional standards and decentralized settlement makes it unique on a blockchain. With the increasing adoption, Dusk Network is settling to be the platform supporting regulated on-chain finance globally.