Decentralized finance is getting more established.. There is still a big problem that needs to be solved. It is not about how fast things happen or how much money is moving around. The main issue is, about trust. Can DeFi be private. Keep things confidential like regular banks and institutions have to do by law? This is an one because DeFi also needs to be transparent and allow audits. For a time this is where most blockchains have failed. Decentralized finance needs to figure this out.
The #dusk Network was created with a problem in mind. Of trying to add privacy and rules to an existing public ledger the Dusk Network does things differently. It starts with an idea: when it comes to regulated finance the Dusk Network needs to have privacy as a standard feature but it does not need to be completely secret. A lot of people get these two ideas mixed up. They are really not the same thing. The Dusk Network is about finding a balance, between privacy and openness.
Most blockchains are pretty open. You can see everything that is going on. People can look at wallet balances and transaction histories. See who owns what assets. This is okay when people are just trying things out.. It is not good for big institutions that have to follow a lot of rules.
Dusk does things differently. It uses tools like zero-knowledge proofs and privacy primitives to keep things private. This means that people can keep their business to themselves.. When someone needs to check on things Dusk can still prove that everything is okay. Dusk is, about keeping financial activity private when it needs to be while still being transparent when necessary which is what Dusk is trying to achieve with its blockchain.
What makes this approach believable is that you do not have to choose between being private and following the rules. The rules for things like knowing who your customers are and stopping money laundering are built into the system. This means that companies do not have to trust that everything is being done correctly outside of the system. The rules for who can use the system and what they have to report are all part of the system itself. This way the rules are clear. Everyone can see that they are being followed. The system makes sure that all the rules are enforced and that everyone can check that they are being enforced. This approach is about privacy and compliance for things, like the systems rules.
The underlying architecture is based on discipline. Dusk has a design. This means that smart contracts and decentralized applications work on a layer that's compatible with the EVM. This makes things easy for developers. They do not have to deal with unnecessary problems.
At the time Dusk has a separate layer for settlement and consensus and privacy enforcement. This layer is specifically designed for activities that have to follow rules.
This separation is what allows the Dusk network to be flexible, without breaking any rules that it has to follow. Dusk network stays flexible. Dusk still follows the rules.
The $DUSK token is really important for this system. It helps in ways. You can use the DUSK token to pay for things like transaction fees. You can also use it to deploy contracts and participate in staking. The DUSK token is even used to make decisions about how the network is run.
The total number of DUSK tokens that can exist is one billion. The way new DUSK tokens are added to the system is set up to help keep the network safe and make sure the people who help run it are doing their job. This is done over time. Is not meant to be a quick way to get people excited. The DUSK token is meant to help the network work properly and safely. It is not meant to be a distraction, from what the network's supposed to do.
Dusk has done something important with its Confidential Security Contract standard, which is called XSC. The XSC contracts are made to help turn financial things into tokens in a way that follows the rules. Things like getting dividends, voting and doing company business can all be done automatically on the blockchain but peoples ownership and transaction information stay secret. This means companies can use financial systems on the blockchain without getting in trouble with regulators. Dusks XSC makes this possible so companies can use the blockchain for things, like dividend distributions and voting rights and it is all done in a way that keeps the ownership and transaction data of the Dusk Confidential Security Contract secret.
Dusks partnerships are really important beyond the rules that Dusk follows. Dusk works with exchanges that are regulated companies that provide data and layers that help different systems work together. This helps connect financial systems and new decentralized markets. Dusk makes it possible for regulated assets to move between chains while keeping everything private and following the law. This means more people can use these assets without lowering the standards that're in place. Dusks partnerships and the way Dusk works are key, to making this happen with Dusk.
What Dusk ultimately represents is a change in the way we think. Dusk does not see rules and regulations as something that blockchain technology needs to get from. Dusk sees rules and regulations as something that needs to be dealt with in a way. Dusk makes sure that privacy and following the rules are in line, with being able to program things. This way Dusk provides a way for big financial institutions and blockchain technology to work together in a way that makes sense for both Dusk and the institutions.
Not as a compromise, but as a convergence secure, private, and built to operate in the real world.
