In the past few years, we have believed that the 'complete transparency' of blockchain is its greatest advantage. However, when we tried to invite real financial giants into the decentralized finance space, this 'transparency' turned into a fatal flaw.
Imagine if Goldman Sachs or JPMorgan would be willing to make large transactions on a public ledger where everyone can monitor their positions in real time and anticipate their trading strategies? Absolutely not. For institutions, privacy is not just protection, but a core competitive advantage. This is precisely why decentralized finance cannot support large-scale commercial applications at present.
Dusk is trying to fill this missing puzzle piece through its unique DuskEVM and confidential smart contract technology.
From 'complete transparency' to 'selective privacy'
Dusk's technological vision is not simply about 'anonymization', but a more complex 'confidentiality'. By introducing zero-knowledge proof technology, Dusk allows developers to deploy smart contracts in an Ethereum Virtual Machine-compatible environment, which can execute complex logic while keeping input data and state private.
This means that we can finally build true 'Dark Pools' on-chain.
In traditional finance, dark pools allow institutional investors to conduct large trades without exposing their order books to the public, thus avoiding significant market impact or being 'front-run' by high-frequency trading bots. Dusk's technology enables this complex financial infrastructure to operate on a decentralized network for the first time. Both parties in the transaction can be confident that the trade has been executed correctly, but outsiders cannot glimpse the specific details of the transaction.
Seamless migration for Solidity developers
For the tech community, Dusk's biggest trump card lies in its compatibility. It does not force developers to learn a completely new, obscure programming language. Instead, it supports the industry-standard Solidity language.
This means that existing massive decentralized application developers can easily migrate their code to the Dusk network and, with only minimal changes, add the superpowers of 'privacy protection' and 'compliance auditing' to their applications. This low-barrier migration path is a prerequisite for the rapid explosion of the ecosystem.
Why is this the next stage of DeFi?
The 1.0 phase of decentralized finance is about 'permissionless access', while the 2.0 phase must be about 'enterprise-grade privacy'.
Only when the contract amount of supply chain finance is no longer exposed, when traders' strategies are no longer fully visible to on-chain detectives, and when companies' salary payments are no longer visible across the entire network, can Web3 truly devour the business world of Web2.
Dusk is not just about compliance; it is actually completing the most crucial part of the business logic for blockchain—protection of trade secrets. For those who understand this layer of logic, Dusk is building not just infrastructure, but the foundation of trust for the future commercial society.
