The cryptocurrency industry is constantly changing, but very few Layer 1 projects can truly connect traditional finance with blockchain. Today, I want to talk about Dusk Network—a privacy + compliance blockchain infrastructure that has been quietly developing since 2018. This is not hype, but a comprehensive analysis from the perspectives of technology, progress, and market to see why it is worth paying attention to now.

**Clear Positioning: A Modular Layer 1 Built for Institutions**

Unlike other public chains that expand haphazardly, Dusk embeds the genes of privacy protection and compliance auditing from the very bottom of its architecture. How does it achieve this? Relying on two cutting-edge technologies: Zero-Knowledge Proofs (ZK) and Homomorphic Encryption.

What are the advantages of these cryptographic tools? Simply put, they allow transaction data on-chain to maintain privacy while enabling regulators or auditors to "selectively view" when necessary—neither exposing user privacy nor compromising compliance requirements. This precisely addresses the core dilemma that DeFi has long faced: can privacy and compliance be achieved simultaneously?

**How Is It Used? Practical Scenarios**

Imagine on Dusk, you can perform private transfers, conduct DeFi lending on-chain, or even tokenize and trade real-world assets (such as stocks, real estate, commodities)—all without worrying about sensitive data leaks. Traditional financial players like institutional investors, multinational corporations, and asset management firms, which are often constrained by compliance regulations, now have a new solution.

How big is this market? The global asset management scale is in the trillions, with a significant portion troubled by the dilemma of on-chain privacy versus regulation. Once the Dusk ecosystem matures, this gap could be filled.

**Recent Technological Developments Cannot Be Ignored**

The launch of DuskEVM mainnet is a key milestone. It not only makes it easier for developers to deploy applications on Dusk but also allows for smoother porting of Ethereum ecosystem tools. More importantly, the emergence of DuskTrade, a native project for RWA (Real-World Assets), marks the transition of the ecosystem from concept to practical implementation.

What will the regulatory environment look like in 2026? Based on trends from major regulators like the US SEC, the EU’s MiCA, and Singapore, institutional-grade DeFi and compliant asset onboarding will be major trends. Dusk’s "privacy + auditability" narrative framework hits the pain points of this era perfectly.

**Ecosystem Development and Investment Opportunities**

Currently, Dusk’s ecosystem is in the early expansion stage, which is both a risk and an opportunity. The risk lies in the project needing time to prove itself; the opportunity is early participants witnessing the growth of a new infrastructure. From DeFi to RWA, from individuals to institutions, Dusk has the potential to open new tracks across multiple dimensions.

However, it must be said: projects combining privacy and compliance are inherently in the regulatory gray area and at the forefront of innovation. Policy fluctuations, technological iterations, and competitors’ progress will influence future trends. But in the long run, the integration of privacy and compliance is an inevitable direction for blockchain development. Against this backdrop, Dusk’s prospects are indeed worth continuous observation.