Imagine a scenario: a multi-hundred-million-dollar private equity deal is completed behind the scenes, with the identities of both parties kept confidential, transaction amounts and details hidden, yet regulators can audit the entire process with a single click—sounds like science fiction, but by 2026, this could become a reality.

Another example is a European bank issuing tokenized green bonds. Investors enjoy complete privacy protection, transaction data is encrypted, and all regulatory requirements under MiCA are seamlessly met. Asset management companies tokenize real estate, allowing global investors to participate in dividends via smart contracts, with all transaction records encrypted by default.

The enablers of these scenarios are the Dusk Foundation, established in 2018, and its Layer 1 blockchain—Dusk.

**Dusk is not a project chasing the latest trend.** From day one, it has had a clear mission: to build infrastructure for regulated financial markets. This infrastructure must meet three conditions simultaneously—privacy-first, auditability, and scalability. At the intersection of traditional finance and decentralized finance, Dusk acts like a gentle yet firm light, illuminating a possible path where privacy and compliance coexist.

**The context of 2018 is crucial.** At that time, Bitcoin soared to $20,000, and the Ethereum ecosystem was thriving. But on the other side, regulatory alarms were already sounding. Europe was drafting revisions to MiFID II, the US SEC was cracking down on ICOs, and privacy coins like Monero and Zcash, despite their strong anonymity features, were shunned by traditional financial institutions due to their lack of auditability.

This is where Dusk’s opportunity lies. It recognized the real market need: we require privacy, but also the ability to be audited. These two are not mutually exclusive; the key lies in design.

Dusk’s core technology revolves around two innovations: first, the application of zero-knowledge proofs, which keep transaction details confidential while proving their legitimacy; second, a flexible audit mechanism that allows regulators and auditors to access complete transaction histories when necessary. This "default encryption, on-demand decryption" design perfectly meets modern finance’s dual demands for privacy and transparency.

Compared to other Layer 1 blockchains, Dusk’s positioning is more vertical and focused. Ethereum is a general-purpose platform aiming for ecosystem prosperity; Solana emphasizes speed and aims for maximum TPS; Dusk, on the other hand, is heading toward a specific track—the regulated financial market.

**Real-world applications are already underway.** Some European financial institutions are testing tokenized products based on Dusk. Green bonds, real estate assets, private equity shares—these traditional financial assets are being tokenized. Once on-chain, Dusk’s privacy and audit capabilities enable these assets to circulate globally while remaining compliant with regulations.

The potential here is significant. The global real estate market exceeds $300 trillion, and the private equity market is growing at about 10% annually. If a portion of these assets can be tokenized via blockchain, privacy-compliant chains like Dusk could become foundational infrastructure.

Of course, challenges are real. Regulatory frameworks are still evolving, and different countries have varying requirements for privacy and auditability. Dusk needs to find a balance within these complex regulatory landscapes. But since 2018, Dusk has already made considerable progress on this path. It’s not chasing hype; it’s using technology and patience to pave a longer-term road.