The contradiction between privacy computing and regulatory compliance has always been a challenge in the public chain ecosystem. Dusk has adopted a unique technical solution to address this pain point.

**Innovations in Technical Architecture**

The core lies in modular design. Dusk separates the consensus layer, settlement layer, and privacy computing layer. The benefit of this approach is maintaining Layer 1 transaction throughput without sacrificing privacy. The specific privacy solution combines zero-knowledge proofs and homomorphic encryption to ensure that on-chain transaction data remains encrypted throughout, while reserving interfaces for regulatory audits—this is crucial for connecting with traditional financial audit requirements.

**Two Key Focus Areas for Ecosystem Implementation**

In January, two major developments for Dusk progressed simultaneously:

The launch of the DuskEVM mainnet means developers can deploy compliant DeFi applications directly on it without relearning new languages. Code assets from the Solidity ecosystem can be seamlessly migrated, reducing development costs for application providers.

The DuskTrade platform is also in the open candidate phase, aiming to bring 300 million euros worth of tokenized securities onto the chain. The significance of this lies in opening a channel between traditional assets and on-chain circulation, as the RWA track moves from concept to actual implementation.

**Market Perspective Judgment**

The combination of privacy + compliance may seem contradictory, but this is precisely what future on-chain finance requires. Dusk’s technical accumulation and rapid ecosystem deployment indicate that competitors in this track are moving from proof of concept to practical implementation. For long-term investors focused on this direction, this is a signal worth monitoring.