The current blockchain ecosystem is indeed expanding, but one longstanding problem has yet to be solved—public blockchains want to provide true decentralization and transparency, but they have to make compromises on privacy protection and regulatory compliance. The needs of institutional finance are right there, and they won't give up privacy just for the ideals of blockchain.

This is why projects like Dusk exist. Since its founding in 2018, its goal has been clear: to create a dedicated Layer 1 for regulated financial scenarios. From day one, it has not intended to follow the old path of "complete transparency," but instead to embed privacy and auditability directly at the protocol layer, using hardcore cryptographic technologies like zero-knowledge proofs and homomorphic encryption, allowing transactions to be both privacy-protected and selectively auditable by regulators.

Traditional blockchain logic is quite blunt—every transaction is exposed in the sunlight. This is a nightmare for institutional investors, as sensitive transaction data and position information are fully exposed, making it impossible to use. Dusk takes a different approach: transaction content is kept confidential from the public, but still meets the strict regulatory frameworks like the EU MiFID II and the US SEC. This "compliant privacy" design concept actually provides a reason for traditional finance to embrace blockchain.

Modular architecture is Dusk's core competitive advantage. The underlying consensus and execution focus on performance and security, while the application layer leaves ample flexibility for developers. In the second week of January 2026, DuskEVM will go live, marking a new turning point for this architecture. As an EVM-compatible solution, it connects with existing ecosystems, providing a landing platform for institutional applications, compliant DeFi, and RWA tokenization scenarios.