Since its founding in 2018, Dusk Network has been exploring a seemingly contradictory proposition—how to protect privacy while satisfying financial regulatory requirements. This Layer 1 blockchain provides an answer: using modular architecture and zero-knowledge proof technology to find a balance between the two.

First, let's talk about modular design. Dusk separates core functions such as consensus, execution, and data availability, allowing developers to assemble them like building blocks as needed. Want to do high-frequency trading? Choose a specific configuration. Need complex settlement processes? Swap in a different module. This flexibility not only results in faster processing speeds and lower latency but also naturally reserves space for integration of compliance tools and privacy protocols—KYC modules, risk controls, can be seamlessly embedded.

The trump card for privacy is zero-knowledge proofs. Transaction amounts and participant identities are encrypted and hidden, making them invisible to outsiders. But this is not a dead end—the system is designed with auditable exits. Regulatory authorities, when authorized or triggered by specific conditions, can generate cryptographic proofs to verify transaction legitimacy (such as anti-money laundering checks) without exposing all transaction details. The biggest concern of traditional financial institutions regarding DeFi—regulatory risk—is significantly alleviated by this mechanism.

In the hot track of RWA tokenization, Dusk's potential is considerable. Asset ownership can be securely transferred under privacy protection, with smart contracts automatically handling dividends and liquidations, greatly reducing intermediary costs. The DUSK token plays a dual role in the network: maintaining network security through staking, while token holders have voting rights for protocol governance.

In simple terms, Dusk is not aiming to build an opaque dark pool beyond regulation's reach, but rather to establish an infrastructure that respects privacy while complying with modern financial regulatory frameworks. It has found a feasible balance on the scale between privacy and compliance.