Blockchain technology empowers new opportunities for real-world assets

Real-world assets ( RWA ) are rapidly emerging as a new asset class in the cryptocurrency industry. As of May 2024, the RWA market size has exceeded $6.6 billion, highlighting investors' strong interest in this innovative financial product and the growing demand. The rise of RWA is closely related to the widespread application of blockchain technology. Through tokenization, physical assets such as real estate, commodities, and intellectual property can be represented on the blockchain in the form of digital tokens. This process brings several key advantages:

1. Asset ownership division: Previously indivisible assets can now be split into smaller units of tokens, allowing more investors the opportunity to participate.

2. Liquidity Improvement: Tokenization simplifies the asset trading process and is expected to increase the liquidity of traditional illiquid markets.

3. Increased Transparency and Security: Blockchain technology ensures the security and transparency of transactions, reducing counterparty risk.

RWA, after being tokenized and put on the chain, can serve as an important source of income for decentralized finance ( DeFi ). The industry expects that by 2030, the market size of asset tokenization will soar to $10 trillion. With investor interest continuing to rise, some projects are expected to gain favorable positions in this growth wave. RWA is gradually becoming the core of the DeFi market based on equity, physical assets, and fixed income, with related projects continuously emerging.

This article will delve into Dusk Network, an infrastructure project in the Web3 RWA space that emphasizes compliance. After a long development period, the Dusk mainnet is scheduled to launch in the second quarter of 2024, marking an important milestone for the project.

Overview of Dusk Network

Dusk Network is a blockchain platform designed for regulatory and decentralized finance. It is committed to issuing digital securities, aiming to achieve compliance automation while protecting user data privacy. By integrating privacy and compliance, Dusk Network provides strong support for secure on-chain transactions of RWA.

The platform adopts a unique consensus mechanism that combines Proof of Stake ( PoS ) and zero-knowledge encryption technology to ensure confidentiality and compliance. Dusk Network aims to simplify the regulatory market by eliminating high-cost intermediaries while strictly adhering to regulatory standards.

Main Features

1. Compliance Blockchain Solutions: Dusk Network aims to meet the regulatory needs of institutions. As an open-source, public, permissionless Blockchain, it can be used by companies of all sizes.

2. Built-in Privacy Protection: Dusk offers a privacy-focused system for tokenization, clearing, and settlement of financial instruments. Its developed Citadel protocol integrates a self-sovereign identity system into the Blockchain, and it has also developed an off-chain version called Shelter for institutional private KYC. Users can selectively disclose information and protect their data.

3. Confidential Smart Contracts: Dusk is one of the first blockchains with native confidential smart contract capabilities, allowing the creation and issuance of privacy-supported tokenized securities. This simplifies business operations and enhances overall efficiency through automated audits, reducing management and legal costs. Institutions can also utilize these contracts to enjoy the advantages of public networks while maintaining compliance.

4. Zero-Knowledge Proof Technology: Dusk utilizes zero-knowledge proof technology, allowing verification without disclosing underlying data. By integrating PLONK(, an advanced zero-knowledge encryption technology), Dusk ensures robust privacy protection.

Competitive Landscape

Dusk Network stands out in the RWA space, focusing on regulatory compliance and emphasizing privacy protection. Below is a comparison with major competitors:

1. Compared to Mantra, Dusk is more focused on privacy-supported Blockchains and confidential smart contracts.

2. Compared to Nexera, Dusk emphasizes privacy and is moving towards obtaining EU licenses.

3. Compare Securitize, Dusk and BWRE's collaboration to launch high-yield bonds, with an emphasis on privacy protection.

4. Compared to Oasis Network and Secret Network, Dusk offers native privacy support and regulatory compliance.

5. Compared to Ondo Finance, Dusk is a blockchain that provides privacy support for RWA and confidential smart contracts.

The advantages of Dusk lie in its privacy-supported Blockchain, confidential smart contracts, and regulatory compliance, making it an ideal choice for financial dApps and institutions that require privacy and compliance. However, Dusk also faces challenges such as lower recognition, smaller market capitalization, and being in an early stage. Its focus on privacy and regulatory compliance may limit its appeal to a broader range of Blockchain and DeFi projects.

Token Economics

The DUSK token is the core of the Dusk Network, with the following main features:

• Market Cap: $220.72 million ( based on circulating supply and price )
• Fully diluted valuation ( FDV ): $237.65 million ( based on total supply and price )
• Circulating Supply: 46.96% of the maximum supply of 469.62 million DUSK(
• Total Supply: 500 million DUSK
• Max Supply: 1 billion DUSK

The use of tokens includes staking and rewards, paying transaction fees and Gas costs, as well as making payments within the network and serving as collateral for issuing digital assets.

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Team and Ecosystem

Dusk Network is led by founders Emanuele Francioni, Fulvio Venturelli, and Jelle Pol, with a team that combines technical and business expertise. The project has received substantial funding support, including $1 million raised in the 2020 ICO, $8.08 million raised in a private sale supported by a trading platform in 2018, and $1 million from BlockVenture's seed fund.

By partnering with NPEX, Dusk Network is pioneering Europe's first blockchain-driven securities exchange. The latest roadmap released in September 2023 outlines the plans for the mainnet launch in 2024, including the incentivized testnet )ITN( and a comprehensive audit process.

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Investment Prospects

Bullish factors:

• The RWA market has a broad prospect.
• The opportunities for digital assets in the private market are enormous.
• Europe's first Blockchain stock exchange title
• Diversified programming language support
• Dusk Grant Program Promotes Innovation
• The mainnet is about to launch

Bearish factors:

• Facing intense competitive pressure
• Lack of smart capital attention
• Strategic focus is too narrow
• Complex regulatory environment challenges

Overall, Dusk Network has unique advantages in the RWA and privacy protection fields, but it still needs to overcome many challenges to stand out in a competitive market. Investors should closely monitor the progress of its mainnet launch and subsequent developments.