Nowadays, institutional-grade applications are being implemented on the blockchain, and there's one question that cannot be avoided: how to protect user privacy while meeting regulatory requirements? Dusk Network provides an interesting set of answers.

The feature of this Layer 1 blockchain lies in its modular layered design — dividing the network into four parts: system layer, blockchain layer, business layer, and user experience layer. It sounds complex, but the core is simple: by isolating Byzantine Agreement (SBA) and Zero-Knowledge Proofs (ZKP), it allows transaction privacy and compliance auditing to coexist.

Here's a more intuitive example. Issuing a tokenized security on Dusk, transaction details are transparent to authorized institutions but hidden from others. At the same time, the system automatically complies with Anti-Money Laundering (AML) and tax reporting requirements — this is what’s called a "confidential smart contract." Plus, with Dusk’s collaboration with Chainlink (using cross-chain interoperability protocol CCIP and data oracles), on-chain assets and off-chain financial systems can seamlessly connect.

From a token incentive perspective, the $DUSK token supports multiple functions such as consensus participation, ecosystem governance, and fee payments, forming a complete value cycle. This design is particularly suited for scenarios like RWA tokenization, institutional DeFi, and privacy financial applications, with a logically coherent structure.

Honestly, privacy and compliance are no longer mutually exclusive choices — Dusk is paving this path.