At the end of each quarter, institutional operators engaged in real-world assets (RWA) or tokenized securities enter the same "nightmare" phase—compliance audit week. It's not about how badly the market is crashing, but how annoying regulatory inquiries are: AML (Anti-Money Laundering) checks, fund flow tracing, identity verification (KYC) matching...

Do you know what the traditional approach is? Scraping data on-chain and then manually matching off-chain identities. The entire team works overtime, and the error rate is still extremely high. This is the "manual compliance hell" that most exchanges and asset issuers are experiencing right now.

But I recently studied Dusk Network's asset issuance standards and suddenly realized there might be an alternative solution. Instead of treating compliance as a patch after the fact, Dusk Network uses the Zedger model and confidential secure contracts (XSC) to make it an inherent property of the asset itself. It sounds like a small difference, but in practice, it's a completely different world.

Let's start with the current pain points: the vast majority of RWA tokens on public chains are essentially "dumb." The standard ERC-20 contract is just a container with no logic inside. As long as you have the private key, you can transfer to anyone, including sanctioned addresses or frozen accounts—nothing the system can do about it.

Therefore, institutions have to layer a whitelist contract outside the token contract. It sounds simple, but in reality, it's a nightmare: every transfer must first check the whitelist, gas fees skyrocket, and the system becomes increasingly cumbersome...