TLDR: The Dusk network aims to provide a privacy layer for financial instruments of the future. Additionally, it is one of the fastest, safest, and most secure networks for financial smart contracts.
In a world where you are constantly under the eye of surveillance by various tech giants, maintaining privacy is getting harder. That’s not all: the problem of maintaining privacy also extends to financial privacy. Therefore, today we will discuss a project that solves precisely this problem, the Dusk network! So, let’s get started!
What is Dusk Network?
The Dusk network essentially provides a privacy layer for financial instruments like securities, bonds, etc. But how? Well, essentially the Dusk network helps both parties in a financial transaction. Customers of these financial instruments enjoy one hundred percent privacy. It does so by keeping the user at the center and then piecing together the puzzle. On the technology front, it uses a lot of technologies that we shall soon dive into. On the other hand, businesses with financial instruments can use the network to tokenize them, thereby making them more efficient. Not just that, tokenization also allows businesses to significantly reduce the costs associated with financial instruments. Let’s get into how Dusk Network really maintains a fast, scalable, privacy-sensitive, and secure blockchain!
How does Dusk Network work?
The Dusk network uses the following to achieve its functionality:
- Rusk: A virtual machine that enables users to program smart contracts and power dapps. Additionally, it allows users to set parameters for compliance and regulations.
- PLONK: The latest advancement in zero-knowledge cryptography that is used to maintain privacy and security while making transactions.
- Microkelvin: A toolkit used to make advanced custom data structures easy to implement for smart contracts.
A special ingredient
What’s special about the way Dusk Network functions is that it provides fast and confidential transactions. Dusk does so by using Instant Settlement Finality and Zero-Knowledge proofs, thereby achieving a goal of a true distributed Financial Market Infrastructure (dFMI). Now, the network is capable of providing a clear and final settlement of transactions. However, even the consensus mechanism of Bitcoin and Ethereum failed to achieve this. Therefore, the Dusk network developed its own Succinct Attestation (SA) agreement (a novel consensus algorithm) to create a Proof-of-Stake based permissionless blockchain network. This algorithm helps the network in achieving instant settlement of transactions that are final and irrevocable, thereby, keeping the transaction quick and confidential.
The DUSK token
The DUSK token is the native token of the Dusk network. The DUSK token is used to pay for network services fees. These include deploying a smart contract and transferring security tokens. It is also used for the deployment of smart contracts by businesses in order to offer financial instruments. The DUSK token can also be used to get token rewards.