2026-01-17 16:28:23

When blockchain discusses finance, it all sounds beautiful: wanting anonymity and freedom, no interference, and funds flowing freely. But the truth is often more sobering—once securities, liquidity pools, or institutional accounts are involved, regulators will eventually come knocking. Most projects choose to avoid this, but Dusk takes a different approach, explicitly incorporating compliance as a fundamental system requirement. This choice is a bit "rebellious," but in reverse, it’s quite pragmatic.

Many people misunderstand the purpose of privacy. Dusk’s logic is: privacy is used to protect your legitimate boundaries, not to evade rules. Your transaction details and participant information can remain private, but your compliance status must be verifiable. In other words, you don’t have to reveal all your cards, but you must prove you’re playing within the rules. This approach is closer to traditional financial risk control logic and much more realistic than the common "black or white" thinking in the crypto world.

Because the goal is clear, Dusk is not greedy in application scenarios. Instead of rushing to pile on various DeFi tricks, it focuses on slow, meticulous areas like securitized assets, compliant issuance, and institutional investment. Many projects see restrictions as disadvantages, but Dusk considers them an essential part of system design. This mindset indeed carries a bit of the temperament of financial institutions.

The technical side is similarly restrained. Dusk’s self-developed Piecrust VM isn’t for show, but to ensure efficiency and stability in zero-knowledge proof environments. General virtual machines are costly and complex in ZK scenarios, and large-scale operations could pose uncontrollable financial risks. Tightening the execution layer design is fundamentally about being responsible for long-term operation.

So, looking at Dusk, it’s more like preparing for the next phase of on-chain finance. Not noisy, nor rushing to tell stories, but seriously providing solutions on the unavoidable hurdles of privacy and compliance.

DUSK5,04%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

22 Likes

Reward
22
7
Repost
Share

Comment

0/400

MetaMasked

· 01-20 02:59

It's rare to see a project dare to write compliance into the code, most are still dreaming of "as long as I have privacy, I can do whatever I want." Being pragmatic is true, but how to go about it? Do institutions really buy into it? Privacy ≠ evading rules. It sounds good, but how does it work in practice? Not piling on features is indeed wise, but does the market buy this? Look at how quickly those impatient and profit-driven projects sell out. I get the idea behind Piecrust VM; trying to build a universal virtual machine under ZK is basically shooting oneself in the foot. It's a bit like traditional finance, but the problem is... who says on-chain finance has to be so restrained? The next phase of on-chain finance? Sounds like admitting they haven't caught this round of craziness. There's no problem with seriously proposing solutions, but I'm worried the market can't wait for such meticulous work.

View OriginalReply0

ImpermanentSage

· 01-19 04:02

Incorporating compliance into the code—this approach is indeed a bit different. Most projects are still dreaming of freedom, but Dusk directly takes reality as its theme, which is quite impactful.

View OriginalReply0

AllInAlice

· 01-18 00:32

Compliance is not a shackle; it is the passport to long-term survival. Dusk has understood this thoroughly. No more of that "freedom is everything" nonsense. The reality is either to cooperate with regulations or wait to be investigated. Instead of hiding, it's better to face it directly. I think Piecrust's design approach is good. In ZK scenarios, sacrificing versatility for stability—although not as "sexy"—is indeed reliable. Finally, there’s a project that’s not just stacking DeFi stuff randomly. Focusing on institutional clients really helps find differentiation. It feels like Dusk is making its next bet. Privacy is privacy, but there must be bottom lines. That’s the mature way to play, right?

View OriginalReply0

FUD_Whisperer

· 01-17 16:58

Hmm, the idea of built-in compliance is indeed rare. But the question is, can it truly attract institutions? --- Another narrative of "we are more mature than others." Just listen. --- Zero-knowledge proofs combined with compliance verification... sounds like traditional finance wearing a chain vest? --- Interesting, finally someone understands that privacy does not equal money laundering. Whether the market believes it or not is another matter. --- Restraint? That means no stories of soaring to the sky. These days, how can you raise funds without a story? --- Securitized assets on the chain, regulation still has to follow step by step. Is this path not full of pitfalls? --- Sounds good, but when truly facing regulatory authorities... guess how long Dusk can hold on. --- Not being greedy is indeed commendable. Most projects have long since copied a bunch of messy features.

View OriginalReply0

FreeMinter

· 01-17 16:51

Incorporating compliance into the system is indeed a clear approach. But to be honest, when the day of implementation arrives, whether regulators will still approve remains another matter.

View OriginalReply0

MetaverseLandlord

· 01-17 16:50

To be honest, I am still convinced by this logic. Most projects claim that decentralization is enough, but Dusk actually integrates compliance into the system. It may sound like a compromise, but in fact, it’s a clear insight. Privacy does not equal tax evasion or regulatory avoidance. This needs to be repeated many times, as too many people are still confused. Dusk’s approach indeed has the shadow of traditional finance, but from another perspective, maybe this is the way for on-chain finance to survive long-term. Not showing off skills, not piling on gimmicks, focusing on securitization—this kind of restraint actually makes it somewhat rare. There are not many projects that can do this in the current environment, and it’s worth paying attention to.

View OriginalReply0

GateUser-c799715c

· 01-17 16:44

Compliance is indeed a hurdle, but Dusk's approach is quite sensible.

View OriginalReply0