When it comes to privacy and regulation, these two have always been "frenemies" in the on-chain financial sector. But Dusk Network from the Netherlands aims to break this deadlock.

The project is backed by Dusk Foundation, a non-profit organization established in Amsterdam in 2018. The founding team brings together experts in cryptography, fintech, and blockchain, with a clear core philosophy: to build a decentralized financial infrastructure that protects privacy while complying with regulatory requirements, enabling a seamless connection between traditional finance and the blockchain world.

After more than six years, Dusk Network officially launched its mainnet on January 7, 2025. This was not just an ordinary launch; it came after multiple delays and adjustments—strictly aligned with EU regulations like MiCA. The successful production of the first immutable blocks signifies that privacy-compliant on-chain finance has moved from the lab into a production environment.

On the technical side, Dusk's approach is quite interesting. It uses the PlonK system from zero-knowledge proofs and the Poseidon hash algorithm to completely hide transaction details. At the same time, through verifiable proofs, it automatically meets KYC/AML checks and local regulatory requirements. In other words, privacy and compliance are not in conflict here; instead, they support each other.

What practical benefits does this "privacy equals compliance" design offer? Issuers can now directly issue real-world assets on-chain—such as bonds, securities, and stablecoins—supporting private transactions while enabling atomic settlement (no more T+2 waiting, instant settlement). The result is a significant reduction in intermediary costs, increased efficiency, and lower trust costs. For institutions eager to embrace blockchain but cannot bypass regulation, this represents a major breakthrough.