Deconstructing Dusk: The Ultimate Reconciliation Between Compliance and Privacy in Layer 1 The narrative in the public blockchain arena of 2026 has changed. Simply offering "high performance" or "absolute privacy" is no longer sufficient to meet the upcoming demands of trillions of dollars in compliant assets being on-chain. The core contradiction lies in how to protect transaction privacy while simultaneously satisfying regulatory audits. Dusk Network offers an answer worth examining. Its core technical component, Hedger, is essentially a programmable privacy module. It doesn't hide the transaction itself, but rather encrypts sensitive data such as transaction amount and asset type. Crucially, it generates a set of verifiable zero-knowledge proofs, allowing regulators to decrypt them using specific "regulatory keys" after obtaining legal authorization. This achieves "selective disclosure," rather than "complete anonymity." Data illustrating progress: After one year of operation, the mainnet DuskDS has accumulated over 200 million DUSK in staked assets, with a staking rate of approximately 36%, providing a solid economic safety net for the network. A more universally applicable breakthrough lies in DuskEVM. Developers can use the familiar Solidity toolchain for development, only calling the Hedger module where privacy is required. This significantly lowers the development barrier. The testnet upgrade at the end of 2025 optimized the Gas model, making the cost of simple transfers and complex calculations more reasonable. The ecosystem is already taking shape. The native DEX Pieswap enables basic exchanges; the liquid staking protocol Sozu has reached a TVL of $25.6 million, providing approximately 28% APY, converting staked warrants into tradable assets and improving capital efficiency. Outlook: If its "native issuance" vision is realized, assets (such as bonds and stocks) will be directly generated on-chain, possessing features such as instant settlement and programmable compliance rules (such as accredited investor lock-up), which is far more innovative than simply "packaging RWA." If the DuskEVM mainnet launches as scheduled, it may become a key hub igniting this vision. @DuskFoundation $DUSK #Dusk