When it comes to the integration of blockchain and traditional finance, there's an old problem that has yet to be solved—compliance is always the last thing to be considered.

Currently, most protocols follow a similar pattern: first, they develop flashy financial features with great effort, then they desperately patch on compliance measures. The result? It's like installing a security system on a sports car—heavy and awkward. By 2026, the limitations of this approach will become increasingly apparent.

To truly attract institutional users, a different approach is needed. Compliance cannot be optional; it must be embedded into the protocol's very DNA. DUSK is taking this route—avoiding post-hoc fixes and instead integrating compliance and privacy verification into the protocol from the start.

The key is that future financial applications will compete not based on who has more complex features, but on who can handle sensitive assets on a trustworthy foundation. DUSK leverages zero-knowledge proofs to create an interesting solution: on-chain operations can prove their legality and validity (such as correct transfer signatures), while maintaining privacy for observers, and simultaneously generating verifiable compliance proofs for regulators. Three birds with one stone.

By 2026, the advantages of this "intrinsic compliance" will explode at two levels: first, the asset issuance process will be completely simplified, eliminating the need for cumbersome legal structures and separate custodians; second, cross-border financial scenarios will see a significant boost in efficiency. This is the true paradigm shift.