2026-01-21 19:21:17

The conflict between privacy and compliance has existed for a long time. Traditional privacy coins promise absolute secrecy but are difficult to pass regulatory scrutiny, while fully transparent public chains limit the activity space for institutional funds. Dusk Network aims to break this deadlock, and their introduced Hedger protocol offers a new approach.

The brilliance of this solution lies in integrating zero-knowledge proofs and homomorphic encryption technology. When users conduct transactions, the amounts, addresses, and details are completely hidden from the outside, but designated regulatory nodes can verify compliance status at any time—privacy and auditing are no longer mutually exclusive. This is a real breakthrough for institutions concerned about their transactions being exposed.

Hedger runs on the DuskEVM mainnet (launching in the second week of January), with low transaction costs and compatibility with the Solidity ecosystem. Developers don’t need to overhaul their existing systems; existing DEXs or lending protocols can simply add a privacy layer to attract privacy-conscious users. This significantly reduces the difficulty of building RegDeFi applications.

Real-world applications are already underway. DuskTrade has partnered with the Dutch licensed exchange NPEX to move over €300 million worth of tokenized securities onto the chain—investors can enjoy privacy during investment, while regulators can monitor in real-time. Such a scenario would be impossible in traditional finance, but on Dusk, it has become standard.

The $DUSK token plays two key roles here: paying for additional gas fees for privacy computations and maintaining network security through staking. As more institutions enter, Hedger’s use cases will gradually expand from securities to corporate payments and private equity financing, offering considerable potential.

In 2026, as regulations become increasingly strict, Dusk is using technological means to make privacy and compliance no longer conflict. This could change the standards for institutions choosing Layer 1—no longer solely based on performance or cost, but on who can truly bridge traditional finance and the blockchain world.

DUSK-2.65%

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.

11 Likes

Reward
11
5
Repost
Share

Comment

0/400

LightningHarvester

· 4h ago

Zero-knowledge proofs sound like a game-changer, but the key still depends on how well they can be implemented in real-world scenarios. The case of €300 million tokenized securities is indeed impressive, but the real variable is how the Dutch regulators will respond. It seems that institutions have long been waiting for Dusk to achieve what they want; the long-standing pain point of balancing privacy and compliance. Speaking of which, can the staking model uphold security, or does it require ongoing observation?

View OriginalReply0

NotGonnaMakeIt

· 4h ago

Zero-knowledge proofs combined with homomorphic encryption sound quite advanced, but I’m not sure how long they can be practically used. If you really want to put 300 million euros on the chain, the cooperation of regulatory authorities is the key... Talking on paper is easy. Dusk aims to serve both ends this time, but it still seems that institutions will worry about black swan events like on-chain data leaks. DuskEVM compatibility with Solidity is quite clever, saving developers from rewriting code and reducing migration costs. In my opinion, the biggest enemy of RegDeFi is policy flip-flops; technology is just a prerequisite. A securities pilot project of 300 million euros... if it really works, other L1s will have to compete fiercely. Gas fees also include privacy computation costs; will institutional users find it expensive? Hedger’s logic is sound, but the key is how effectively the Netherlands can execute; European regulation has always been cautious.

View OriginalReply0

ColdWalletGuardian

· 4h ago

Zero-knowledge proofs have been around for years, but is Dusk really going to be implemented this time? I'm a bit skeptical. Will institutions really buy into it? The regulatory node thing still feels like there's a backdoor. 300 million euros worth of securities on the chain... sounds pretty scary. Who will cover the losses if something goes wrong? The Hedger approach is pretty good, but having to pay gas fees separately is a bit annoying. Why not just include it in the package? I'm interested in trying staking $DUSK, but I don't know if the APY is worth looking at.

View OriginalReply0

BrokenDAO

· 4h ago

I've heard the rhetoric of selective privacy too many times; the key is whether the regulatory nodes can truly check and balance... Is it a game-theoretic equilibrium?

View OriginalReply0

NoStopLossNut

· 4h ago

Zero-knowledge proofs have been hyped for a long time, and finally someone has really made it happen? The tokenized securities worth 300 million euros—doesn't that signal institutional entry? --- Can privacy and compliance really be achieved simultaneously? I'm still a bit skeptical, but Dusk's approach is indeed brilliant. --- Wait, just because of low gas fees to attract users? That logic seems a bit loose. --- DuskEVM launching in the second week of January? Mark it down—I bet this wave will be hyped up crazy. --- Honestly, I haven't quite understood the RegDeFi direction, but if even licensed exchanges like NPEX are collaborating, then there’s definitely something there. --- Do institutions really care about privacy? I think they care more about not having their accounts frozen.

View OriginalReply0