Currently, financial institutions are enthusiastic about embracing blockchain, but they face two hurdles—privacy protection and regulatory compliance. These seemingly contradictory demands are attracting a group of projects focused on solving this pain point.

From a technical architecture perspective, traditional public blockchains often implement privacy solutions as after-the-fact remedies, but Dusk Network has made a different choice from the ground up. It is not stacking features on existing infrastructure but directly building a Layer-1 blockchain with a clear goal—tailored for confidential finance.

How is this achieved? It relies on three core elements. First is confidential smart contracts, which use cryptographic techniques like zero-knowledge proofs to keep transaction data encrypted during execution, only revealing verification results on-chain. This satisfies transparency requirements while maintaining privacy boundaries. Second is an innovative consensus mechanism design, adopting Byzantine protocol frameworks to achieve high throughput and low latency under decentralized security—crucial for high-frequency trading institutions. The third, and most interesting, is that compliance is directly woven into the protocol layer, allowing native integration of standard financial tools like KYC and AML, significantly reducing onboarding costs for institutional users.

From an ecosystem perspective, the token of this chain is not just a medium of exchange but a value hub for the entire privacy finance ecosystem. It supports multiple functions including network security, governance participation, and application incentives. As more institutions begin handling sensitive financial data on-chain, the demand for such solutions will become increasingly urgent.