RWA on-chain has never been a simple topic. On the surface, it seems like a technical issue, but in reality, it reflects a contradiction that the entire industry is struggling with—how to find a balance between transparency and privacy?

Most public blockchains aim for decentralization, with data transparency as a fundamental feature. But what do actual financial institutions need? Data protection, compliant auditing, and regulatory acceptance. These two needs are like two trains running on parallel tracks—one heading left, the other right.

On ordinary chains, every transaction is visible to the entire network, which is a problem for institutional users. Privacy chains protect data, but regulators cannot see it, creating a new issue. Existing DeFi ecosystems have largely overlooked this aspect, so real asset circulation on-chain remains in an awkward state of "neither transparent nor compliant."

To truly enable financial assets to circulate on-chain, two things must be addressed simultaneously: protecting participants' private data and providing regulators with a clear audit window. That’s why some are thinking about redesigning from the ground up.

Dusk Network’s approach is to create a privacy-first, regulator-friendly Layer-1 blockchain. It’s not just a simple accounting tool but a financial infrastructure designed for institutional-grade users.

The core innovation lies in adopting zero-knowledge proof(ZKP) technology. In simple terms, transaction parties can prove the legality of a transaction without revealing its specific details. Regulators can verify it, and user privacy is preserved. It’s like sticking frosted film on transparent glass—auditors can see the outline, but the details remain confidential.

Architecturally, this isn’t about patching existing public chains but embedding privacy and compliance into the DNA from the design stage. Institutional users can issue assets and complete transactions on this platform while meeting regulatory requirements across different regions. This bridges the gap between traditional finance and on-chain ecosystems and is worth paying attention to.