When institutional assets begin to explore on-chain solutions, the obstacles are often not technical complexity, but two words: compliance and privacy.

DUSK's approach is quite interesting—it doesn't pursue extreme performance but instead targets the real pain points of traditional RWA on-chain. How exactly does it do that?

**In terms of privacy**, it uses the Hedger engine, with core technology being homomorphic encryption. Simply put, data can be computed while encrypted, allowing institutional clients' sensitive financial information to be processed without exposing the original data. Compared to existing solutions, this indeed provides a more compliant operational space.

**Settlement is even more impressive**. Traditional optimistic Rollups have a well-known "challenge period," where transaction confirmation requires waiting for some time. DUSK introduces the MIPS pre-verification mechanism, significantly shortening this cycle. What’s the result? Increased capital efficiency, enhanced finality, and friendliness to large transactions.

In essence, DUSK aims to build a modular infrastructure framework—solving both compliance and regulatory pain points as well as capital efficiency issues. If this approach truly works, it offers a feasible solution for large-scale on-chain application of regulated assets.