Dusk Re-poster

The recent Phoenix updates introduce a substantial privacy enhancement to the Dusk network. Detecting private funds now requires much less computational effort from your wallet, successfully reducing the CPU time needed for each ownership check by 36%. Read on below to discover everything that has been improved.

An incredible transition is underway as trillions in assets prepare to enter blockchain networks in a completely confidential manner. $DUSK

There is a growing appetite across Europe for expanded onchain markets. Reflecting this ambition, the EU Council supported modifications on 9 October aimed at enabling a greater volume of financial operations through the DLT Pilot Regime. At present, this framework grants approved operators the ability to experiment with trading and settlement using blockchain technology while remaining under the watchful eye of regulators. Broadening the scope of this regime fits into a larger regional strategy designed to facilitate business funding and streamline cross-border investments.

A major advantage of this shift lies in smoothly linking the essential components of market operations. In traditional trading setups, payment processes and ownership logs are housed in disconnected systems, forcing operators to constantly reconcile the data. Take the transfer of a bond as an example. The purchaser must satisfy specific eligibility requirements, while both the funds and the ownership rights must change hands. Furthermore, the entity issuing the bond must accurately track these updates to route future interest payments to the correct party.

Dusk offers the necessary digital infrastructure to seamlessly integrate all of these actions directly onchain. By issuing securities natively, bonds are generated straight onto the blockchain alongside an ownership registry equipped to handle both interest distributions and asset transfers. Additionally, Citadel allows investors to demonstrate their purchasing eligibility without broadcasting their private information on the public ledger. When both the assets and funds exist onchain, the delivery versus payment principle ensures that the transfer of the security and the corresponding financial transaction either finalize simultaneously or do not occur at all.

Ultimately, this integrated approach provides issuers with a significant reduction in post-sale record reconciliation, ensuring that any shifts in ownership are instantly and accurately captured for the subsequent interest distribution.

Even though smart contracts provide wonderful convenience by automating settlements, payments, and investor verifications, they carry a significant privacy cost. Because these tools run on public blockchains, they have essentially turned personal investor information into open logs, leaving every single transfer and portfolio position fully visible to anyone. You do not have to accept this compromise, however, because using Dusk ensures that all of your investments are kept strictly confidential.

The zero-knowledge proof engine at Dusk is now 2x faster. We recently delivered ten distinct releases for our core cryptography libraries, encompassing signatures, encryption, Merkle trees, hashing, proofs, and curves. Dive into the details below to see exactly what we have included.

The job of an issuer continues well past the moment a tokenized security begins trading on the market. Whenever an asset changes hands, issuers must accurately track the new owner to manage redemptions, voting rights, payments, and official notices. Furthermore, all accurate reporting relies entirely on having access to this exact holder information.

In a perfect world, a single transfer of ownership would automatically flow through to everything relying on it. The sequence would be straightforward: an ownership change occurs, holder records are immediately updated, and then the corresponding notices, votes, and payments automatically follow. However, the everyday reality is quite different. Payment networks, investor communication tools, and registries are typically isolated from one another in completely different locations. Consequently, each transfer of data between these disjointed systems introduces the potential for mistakes, requires additional records to be matched, and slows down the entire process.

This is where Dusk steps in as a unified foundation for asset servicing. By acting as shared infrastructure, Dusk securely links selective disclosure, transfer controls, investor eligibility, and ownership registries together around a single asset. Through this connected approach, service providers and issuers can manage investor updates, voting procedures, and corporate actions directly from the most current holder records. Ultimately, this significantly reduces the burden of tracking down and reconciling disconnected databases.

Discover more about the digital asset servicing use case below.

Successfully integrating regulated markets onchain demands foundational infrastructure explicitly tailored for RWA tokenization. Because of this critical requirement, Dusk is an active member of the ERC3643 Association. Leading the charge in this space is @ERC3643Org, which continuously advances ERC-3643 as the recognized industry standard for permissioned tokens.

Fulfilling KYC requirements does not have to involve handing over your complete identity to every single financial platform you engage with. Increasing the number of companies that store your private information naturally raises the chances of a data breach. In many cases, platforms merely require verification of specific criteria, like residing in an approved nation or passing an age threshold, rather than needing your comprehensive private details.

To address this, Dusk created a digital identity protocol known as Citadel. Under this framework, a reliable provider handles your identity verification offchain before generating a private credential for you. From there, you are empowered to demonstrate ownership of a legitimate credential while keeping your sensitive personal data completely offchain. Because every service determines its own entry requirements, you are only obligated to verify or reveal the exact information they mandate.

Take a look at the Citadel documentation below to find out more.

While the transition of financial markets to the blockchain is bound to happen, it helps to understand that not every approach to tokenization works the exact same way. For example, wrappers merely use a digital token to stand in for an already established asset. Conversely, native issuance builds the asset straight onto the network from day one, an approach that effectively eliminates middlemen and lowers overall expenses. Discover the details of native issuance on Dusk by reading our recently published article below.

Over the last several months, the Dusk stack has experienced substantial enhancements. We have successfully upgraded our zero-knowledge privacy technology, in addition to fortifying overall security and providing superior tools for developers. For a detailed look at our ongoing momentum, we invite you to read through our weekly developer updates. Dive into the most recent developments below.

If you are curious about dusk-network:native, there are several fascinating points to discover. To start, the system utilizes privacy-preserving smart contracts that are specifically built to automate eligibility checks and transfers. Behind the scenes, the team has dedicated 8+ years to building their privacy tech entirely within the EU. Additionally, the Dusk Lead Cryptographer brings exceptional expertise to the project, having co-authored Poseidon alongside co-designing Equihash, which served as the original PoW for $ZEC.

Broadcasting your account balances to the public should not be a requirement for managing assets on the blockchain.

Hedger is stepping in to facilitate confidential transfers on the DuskEVM network. This solution guarantees that your overall balances and specific transfer amounts are securely encrypted, all while ensuring every transaction continues to be fully verifiable.

Continue reading below to understand exactly how this mechanism operates.

Keeping investor details and transaction records secure is a crucial aspect of automating financial services. Consider the case of a tokenized bond that is restricted to buyers from particular nations. The platform managing this asset must validate that a prospective buyer meets these geographic criteria, all while keeping their personal documents and identity completely private. In addition to this initial check, the system must seamlessly manage the exchange of the payment and the asset itself. It also has to apply strict rules to any subsequent trades and ensure that approved reviewers can access necessary historical records.

Dusk provides developers with the resources to construct privacy-focused smart contracts perfectly suited for these complex operations. Through the use of zero-knowledge proofs, applications can easily confirm that specific eligibility conditions are satisfied without ever broadcasting the sensitive background data involved in the process. Furthermore, a mechanism known as selective disclosure permits the sharing of exact information exclusively with authorized parties when necessary. Ultimately, the architecture of the application dictates which data stays hidden, what can be openly verified by the public, and what is reserved for official oversight.

Explore the Dusk documentation below.

Making a transfer on a public blockchain has the potential to expose a surprisingly large portion of your financial history to the outside world. Ideally, your personal transactions ought to remain completely confidential and out of public view. Here is a closer look at exactly what this level of exposure means for you.

Enabling interoperability for real-world assets allows issuers to successfully connect with a much broader pool of potential investors. Yet, a crucial question arises once a natively issued asset transitions to being interoperable across multiple blockchains. Specifically, exactly how are fundamental ownership and investor rights managed in this environment? We invite you to explore the answers in our newly released piece covering RWA interoperability below.