1. Why is on-chain finance stuck?

It's a bit ironic to say. Blockchain was originally meant to liberate finance, but now it’s trapped by a few deadlocks.

Ultimately, there are two core issues:

**Functionality is locked in**. Want privacy protection? Sure, but then scalability drops by half. Need compliance and auditing? Then user privacy has to be sacrificed. Consensus, privacy, and applications are all tangled together, so changing one affects the others, leaving no room for adjustments. How can efficiency not be compromised?

**Scenarios are fragmented**. Currently, most public chain ecosystems revolve around crypto assets, constantly discussing token prices and liquidity. Real valuable assets—RWA (Real-World Assets)—are hindered because privacy and compliance issues prevent them from integrating into on-chain systems. It’s like two separate worlds that can’t be connected.

2. How does modularization break the deadlock?

Modularization sounds technical, but the goal is simple: make each component perform its own function while remaining flexible to combine.

Dusk’s approach is exactly that—no longer a chaotic mix, but divided into several independent yet cooperative modules:

**The underlying consensus layer** uses the Succinct Attestation (SBA) mechanism. Don’t be fooled by the name; its core focus is transaction settlement and network security, with a 15-second quick confirmation. Speed is crucial in financial scenarios, and this metric lives up to that requirement.

**The privacy engine is the Hedger module**. Using zero-knowledge proofs, it can protect privacy without hindering compliance and auditing. This is the real breakthrough—privacy and compliance are no longer mutually exclusive choices.

The beauty of this decomposition is that no matter how complex the financial needs, they can be called upon as needed, like building blocks. Different application scenarios and risk preferences can find suitable combinations. This is the true flexibility that on-chain finance requires.