Real-world assets are emerging in the encryption field

Real-world assets ( RWA ), as an important emerging asset class in the encryption industry, are gradually gaining attention. As of May 2024, the RWA market size has surpassed 6.6 billion USD, reflecting investors’ strong interest and growing demand for this innovative financial product.

The rise of RWA is closely related to the widespread application of blockchain technology. Through tokenization, real-world assets such as real estate, commodities, and intellectual property can be presented on the blockchain in the form of digital tokens. This process brings several key advantages:

1. Asset Division: Assets that were originally indivisible can now be split into smaller units of tokens, allowing more investors the opportunity to participate.

2. Liquidity Enhancement: Tokenization simplifies the asset trading process, which is expected to increase liquidity in traditional illiquid markets.

3. Transparency and Security: Blockchain technology ensures the security and transparency of transactions, reducing counterparty risk.

RWA can serve as a source of revenue for decentralized finance ( DeFi ) through tokenization and on-chain. It is expected that by 2030, the asset tokenization market size will surge to $10 trillion.

As investor interest continues to rise, some projects are expected to gain a favorable position in this growth process. RWA is gradually becoming the core of the DeFi market based on equity, physical assets, and fixed income, with more and more related projects emerging.

This article will delve into Dusk Network, an “infrastructure” project that focuses on compliance within the Web3 RWA space. After a long development period, Dusk’s mainnet is scheduled to launch in the second quarter of 2024, marking a significant milestone for the project.

Network Overview

Dusk Network is a blockchain platform specifically designed for regulatory and decentralized finance. It focuses on issuing digital securities, aiming to achieve automated compliance while protecting user data privacy and being auditable. By integrating privacy and compliance, Dusk Network facilitates secure on-chain transactions of RWA.

The platform employs a unique consensus mechanism that combines PoS and zero-knowledge encryption technologies to ensure confidentiality and compliance. Dusk Network is committed to simplifying the regulated market by eliminating costly intermediaries while still adhering to regulatory standards.

Main Features

1. Regulatory-compliant blockchain solution: Dusk Network aims to meet the regulatory requirements of institutions. It is an open-source, public, permissionless blockchain that enables companies of all sizes to utilize.

2. Integrated Privacy Protection: Dusk provides a privacy-focused system for tokenization, clearing, and settling financial instruments. They developed the Citadel protocol, integrating a self-sovereign identity system into the Dusk blockchain, and created an off-chain version called Shelter for private KYC for institutions. Users can selectively disclose information and protect their data.

3. Confidential Smart Contracts: Dusk is one of the first blockchains with native confidential smart contract capabilities, which can be used to create and issue privacy-enabled tokenized securities. This simplifies business operations by automating audits, reducing administrative and legal costs, and improving overall efficiency. Institutions can also leverage these contracts to utilize the advantages of public networks for financial applications while complying with regulations.

4. Zero-Knowledge Technology: Dusk uses zero-knowledge proof ( ZKP ) technology, which allows verification without revealing the underlying data. By integrating PLONK - an advanced zero-knowledge encryption technology, Dusk ensures robust privacy protection.

Market Competition Analysis

Dusk Network is a unique player in the realm of real-world assets (RWA), focusing on regulatory compliance and emphasizing privacy protection. Here is a comparison with major competitors:

• Compared to Mantra: Dusk focuses more on privacy-supported blockchains and confidential smart contracts, while Mantra has a broader application scope.

• Compared to Nexera: Dusk emphasizes privacy and is committed to obtaining an EU license, while Nexera focuses on multi-chain operations.

• Compared to Securitize: Dusk offers high-yield bonds with BWRE and emphasizes privacy, while Securitize has strong Web2 integration and well-known partnerships.

• Compared to Oasis Network and Secret Network: Dusk offers built-in privacy and confidential smart contracts, while also focusing on regulatory compliance.

• Compared to Ondo Finance: Dusk is a blockchain that provides privacy support for RWA and confidential smart contracts, while Ondo mainly focuses on DeFi and structured products.

The advantages of Dusk lie in its privacy-supporting blockchain, confidential smart contracts, and regulatory compliance, making it an ideal choice for financial dApps and institutions that require privacy and compliance.

However, Dusk also faces some challenges, including lower visibility, smaller market capitalization, and still being in the early stages of development. Additionally, its focus on privacy and regulatory compliance may limit its appeal to a broader range of blockchain and DeFi projects.

Token Economics

The DUSK token is the core of the Dusk Network, and its main features are as follows:

• Market Cap: $220.72 million
• Total Diluted Valuation ( FDV ): $237.65 million
• Circulating Supply: 469.62 million DUSK, which is 46.96% of the maximum supply (.
• Total supply: 500 million DUSK
• Maximum supply: 1 billion DUSK

The uses of tokens include:

• Staking and Rewards
• Pay transaction fees and Gas costs
• Make payments within the network and serve as collateral for issuing digital assets.

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Team and Ecosystem Development

Dusk Network is led by Emanuele Francioni, Fulvio Venturelli, and Jelle Pol, and the team members possess extensive technical and business experience.

The project has completed multiple rounds of financing, including the ICO in 2020 and a private placement supported by a certain trading platform’s laboratory in 2018.

Dusk Network is pioneering the first blockchain-driven securities exchange in Europe, with the European digital token market expected to reach $3.7 billion by 2032.

The latest roadmap shows that the Dusk mainnet is scheduled to launch in the second quarter of 2024, with key milestones including the incentivized testnet )ITN( and a comprehensive audit process.

![Dusk Network: Balancing Compliance and Privacy in RWA Public Chain])https://img-cdn.gateio.im/webp-social/moments-d2de85d79439b81d9e01d1978f151843.webp(

Investment Outlook Analysis

Positive factors:

• The RWA market has broad prospects.
• The status of Europe’s first blockchain stock exchange
• Diversified programming support
• The mainnet is about to launch

Potential risks:

• The market is highly competitive
• Lack of smart fund attention
• Strategic focus is relatively narrow
• The regulatory environment is complex

Overall, Dusk Network has unique advantages in the RWA and privacy protection fields, but still faces challenges such as market competition and regulation. Investors need to weigh the project’s innovation against potential risks and closely monitor its mainnet launch and ecosystem development.