There are huge opportunities for tokenizing real-world assets, but the reality is right there—how to securely bring real estate, artworks, equity, and other assets onto the blockchain? Having technology alone isn't enough; legal compliance, privacy protection, and asset rights confirmation are all practical issues that can't be bypassed.

The most pressing contradiction lies here: asset owners don't want to expose their details and transaction records, which I understand. But issuers, regulators, and buyers need to see verifiable information to assess whether the assets are trustworthy. These two needs are inherently conflicting. Dusk Network has solved this problem—by creating "confidential assets" with privacy-preserving smart contracts, where ownership status and transfer records are fully encrypted and hidden, accessible only to authorized parties. The core mechanism uses zero-knowledge proofs: you can prove to external parties that an investor meets qualified investor standards without revealing who that person is. Clever, isn't it?

Having explained the technical solution, let's see what can be achieved. Dusk's modular architecture is very flexible, capable of integrating KYC/AML verification, legal contract modules, cross-chain protocols, forming a complete chain from issuance to circulation. The specific scenario is as follows: a company issues private equity tokens on Dusk, and the system automatically filters out verified qualified investors who can view the information. Dividend distribution and voting rights are automatically executed by smart contracts. The entire process protects transaction privacy while meeting regulatory requirements—everyone wins.

For traditional financial institutions that want to innovate but are afraid to cross regulatory boundaries, this is essentially a safe sandbox. It inherits blockchain's efficiency and programmability while retaining traditional finance's control and audit capabilities. Many institutions have long been salivating over the RWA (Real-World Asset) cake, but few solutions are truly compliant enough to take a bite. With Dusk's approach, the ecosystem could quickly gather issuers, trading platforms, and various service providers, forming a truly implementable compliant asset ecosystem.