When financial institutions venture into blockchain, they often face a dilemma—how to protect user privacy while meeting regulatory requirements. How can these seemingly opposing needs be satisfied simultaneously?

Dusk Network's latest move provides a very interesting answer. Recently, this Layer 1 blockchain focused on regulated financial infrastructure launched the DuskEVM mainnet, marking a significant advancement.

In simple terms, DuskEVM is an application layer fully compatible with the Ethereum Virtual Machine. What does this mean? Millions of Solidity developers can directly deploy their smart contracts without relearning new skills, and finally settle on Dusk's Layer 1. This effectively lowers the barrier for developer integration and paves the way for institutional applications.

More importantly, it features a privacy solution called "Hedger." This technology uses zero-knowledge proofs and homomorphic encryption to achieve true compliant privacy protection within the EVM environment. Transactions can be both private and meet audit and regulatory requirements.

This approach actually addresses a long-standing pain point: compliant DeFi and real-world asset (RWA) applications have been seeking infrastructure that can both protect privacy and withstand regulatory scrutiny. Dusk's direction appears to be worth watching.