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

Most public chains are heading towards decentralization, with data transparency as a basic feature. But what do real financial institutions actually need? Data protection, compliance audits, regulatory acceptance. These two demands are like two trains moving in opposite directions — one going left, one going right.

On regular blockchains, every transaction is visible to the entire network, which is problematic for institutional users. Privacy chains protect data, but regulators can't see anything either, which becomes a new problem. The current DeFi ecosystem basically hasn't considered this, so the circulation of real assets on-chain remains in an awkward state of being "neither transparent nor compliant."

To make financial assets truly circulate on-chain, you must solve two things simultaneously: protect the privacy data of participants, while providing compliance departments with a clear audit window. This is why some people are thinking about redesigning from the ground up.

Dusk Network's approach is to build a privacy-first, yet compliance-friendly Layer-1 blockchain. Not just a simple accounting tool, but financial infrastructure for institutional users.

The core innovation lies in adopting zero-knowledge proof (ZKP) technology. Simply put, transaction parties can prove the legitimacy of a transaction without disclosing the specific details. Regulators can verify, while user privacy is protected. It's like putting a frosted film on transparent glass — auditors can see the outline, but details aren't leaked.

In terms of architecture, this isn't patching up existing public chains, but writing privacy and compliance into the DNA from the design stage. Institutional users can issue assets and complete transactions on this network while meeting regulatory requirements across different jurisdictions. This bridges the gap between traditional finance and the on-chain ecosystem, and it's worth paying attention to.