The EVM ecosystem has always faced a difficult problem: privacy and compliance often stand at opposite ends of the spectrum. Dusk's Hedger mechanism breaks this dilemma of choosing one over the other.

The recently launched DuskEVM mainnet brings this solution from theory into practice. When developers deploy Solidity contracts, they can automatically benefit from zero-knowledge proofs and homomorphic encryption protections without any additional steps. It sounds ideal, but the key lies in the details—transaction privacy is preserved while regulators can verify transaction legitimacy under authorization.

This is a delicate balance. Sensitive assets like private equity, bonds, and compliant stablecoins can finally operate securely on-chain. Users no longer need to worry about their strategies being exposed to competitors, and regulators can fulfill their duties, ensuring both parties' needs are met within the same system.

The underlying technology support is complex. Dusk has been researching privacy financial infrastructure since 2018, designing a modular layer 1 as the settlement foundation for Hedger. Coupled with high throughput and low costs, it has attracted many developers' migration intentions.

The upcoming DuskTrade will directly apply the Hedger mechanism to handle over €300 million in tokenized securities transactions. This is not a small-scale effort but a genuine institutional-level application.

Compared to other privacy solutions that are either too extreme or too compromised, Dusk has chosen the most difficult but correct path: enabling institutions to confidently go on-chain while allowing users to retain privacy. As more regulated applications come online by 2026, this mechanism could evolve into an industry standard, and the ecosystem value will gradually be unleashed.