RWA has been extremely popular in the past two years, with everyone saying it's a "channel" to bring hundreds of trillions of dollars from traditional finance into blockchain. But a closer look reveals an awkward fact: public chains like Ethereum and Solana have long achieved rapid performance improvements, yet major institutions—such as sovereign funds and large private banks—still remain on the sidelines, watching from outside the circle.

Where is the problem? To put it simply: transparency.

We often hear people praise Ethereum and Solana for their high TPS, but they overlook the most critical pain point for financial institutions—innate fear of full transparency. On public chains, every transaction path, holding size, and trading strategy is on-chain, openly visible to everyone. For institutions, this is equivalent to exposing business secrets to the sunlight, not to mention the risk of front-running. If a bank's hundreds of millions of dollars in clearing positions are exposed, it’s truly a naked run.

Some have thought of privacy coins (like XMR, ZEC solutions), but this approach is taken to an extreme. Complete anonymity sounds appealing, but for financial compliance, it’s a nightmare—anti-money laundering, KYC procedures, and other regulations simply cannot be implemented, and regulation is effectively dead.

This is why protocols like Dusk have recently gained attention. They address the core issue—neither making data a complete black box nor fully transparent—but instead propose the concept of "auditable privacy." Essentially, it’s like a safe with a key: your data privacy is protected, but if regulators need to review, they can do so with an authorized key. This is the real solution that hits the pain points of institutions.