Where is the most convoluted part of on-chain finance? I think it’s the deadlock of choosing between “transparency and privacy.” If you’re fully transparent, institutions won’t come; if you’re fully private, regulators will target you.
The XSC standard created by Dusk Network is quite interesting—separating the two things: “verifying that transactions are valid” and “publishing the details to everyone.” In plain terms: the transaction is real, but it doesn’t need to be seen by the whole world.
Technically, it relies on zero-knowledge proofs, using the PLONK stack. In the default state, the transaction amount and parties are kept confidential. But when regulators need to verify, they can use a “viewing key” to access specific information. This is what’s called “selective disclosure”—you can prove you’re compliant without having to show everything.
To be honest, the whitepaper for @Dusk doesn’t go into much detail about the specific implementation. This kind of permissions management—who is allowed to see what—is exactly the key to whether it can be deployed in real-world securitization scenarios. What’s interesting is that as of January 7, 2026, the mainnet has already been launched, and DuskEVM is live. It also has a collaboration with the Dutch licensed exchange NPEX.
But I still have a question in my mind: regulatory requirements differ across countries. MiCA and MiFID II each have their own rules. Can this key-management mechanism really adapt flexibly? Will institutions still feel it’s too complicated?
What do you think—will privacy chains ultimately be adopted by institutions, or will they keep testing the boundaries of compliance? Let’s discuss in the comments.
#dusk $DUSK @Dusk
The XSC standard created by Dusk Network is quite interesting—separating the two things: “verifying that transactions are valid” and “publishing the details to everyone.” In plain terms: the transaction is real, but it doesn’t need to be seen by the whole world.
Technically, it relies on zero-knowledge proofs, using the PLONK stack. In the default state, the transaction amount and parties are kept confidential. But when regulators need to verify, they can use a “viewing key” to access specific information. This is what’s called “selective disclosure”—you can prove you’re compliant without having to show everything.
To be honest, the whitepaper for @Dusk doesn’t go into much detail about the specific implementation. This kind of permissions management—who is allowed to see what—is exactly the key to whether it can be deployed in real-world securitization scenarios. What’s interesting is that as of January 7, 2026, the mainnet has already been launched, and DuskEVM is live. It also has a collaboration with the Dutch licensed exchange NPEX.
But I still have a question in my mind: regulatory requirements differ across countries. MiCA and MiFID II each have their own rules. Can this key-management mechanism really adapt flexibly? Will institutions still feel it’s too complicated?
What do you think—will privacy chains ultimately be adopted by institutions, or will they keep testing the boundaries of compliance? Let’s discuss in the comments.
#dusk $DUSK @Dusk