The blockchain industry has been swinging back and forth between "decentralization" and "regulatory compliance," but one project has been dedicated to exploring how to combine the two for the past 8 years—Dusk Network. This is a Layer 1 blockchain focused on compliant finance, with the core selling point being its underlying architecture of "privacy-first and built-in compliance." It seems like a promising idea, especially in the trillion-dollar track of RWA (Real World Asset) tokenization.

The reality is that the RWA market size has already surpassed one trillion dollars, covering assets like real estate, securities, and commodities. However, by the end of 2025, the proportion of truly tokenized assets will still be less than 1%. This stark contrast is actually quite simple to explain—the existing blockchain infrastructure cannot simultaneously meet the two major demands of financial markets: privacy protection and regulatory compliance.

Traditional public chains use fully transparent ledgers, making transactions traceable, but this exposes institutions' trading strategies and holdings, which is a nightmare for financial institutions. On the other hand, to meet compliance requirements, many chains have to sacrifice the core value of decentralization.

Dusk Network's approach is different—it doesn't cut off regulatory functions for privacy, nor does it give up blockchain advantages for compliance. Instead, it builds a new framework through technological innovation that "empowers both privacy protection and compliance requirements." If this approach truly works, it will not only solve the bottleneck of RWA tokenization but also have a profound impact on the entire financial blockchain ecosystem.