Dusk recently announced a multi-layer architecture evolution plan, which is not only a technical optimization but also a systematic solution to the core pain points faced by traditional financial institutions entering the blockchain ecosystem.

Conventional blockchain architectures often adopt monolithic designs, consolidating consensus mechanisms, data availability, and smart contract execution on a single chain. This design results in high costs, long iteration cycles, and significant shortcomings in stability and tooling completeness for financial institutions with strict compliance requirements. Dusk's approach is different—it decomposes the entire system into three independently operating modules, each optimized for specific scenarios.

The bottom layer is DuskDS, which provides the fundamental network functions: consensus algorithm, data availability verification, and final settlement. It can be understood as the ledger administrator of the entire system, safeguarding the legality and security of all state transitions. More importantly, this layer integrates native cross-layer bridging mechanisms, allowing asset transfers between layers without third-party custody, thus avoiding the risks associated with traditional cross-chain solutions.

The middle layer is DuskEVM, which offers far more than a simple new virtual machine. Its EVM compatibility means Solidity developers can seamlessly access existing toolchains—such as Hardhat, MetaMask, and a complete ecosystem that is ready to use out of the box. In other words, DeFi applications and compliant financial products that previously required months of rewriting and adaptation can now be migrated almost as-is. Interestingly, this layer plans to incorporate homomorphic encryption capabilities, enabling on-chain transactions to meet auditing requirements while protecting sensitive business information, making it especially suitable for financial scenarios.

The top layer is DuskVM privacy application module, running fully private applications based on the Phoenix protocol and Piecrust virtual machine. For financial logic with high data sensitivity, this provides a secure and flexible environment for privacy operations.

The beauty of this multi-layer separation of concerns lies in clear responsibilities— the bottom layer ensures high security and finality of settlement, the middle layer supports existing ecosystems and general application needs, and the top layer offers dedicated space for privacy protection.