Over the years of the Web3 concept's popularity, most projects have been focused on building narratives and vying for attention. But some teams are thinking differently—how to truly integrate blockchain into the traditional world.

Take Dusk as an example; its chosen direction is quite interesting. Instead of creating another flashy DeFi ecosystem, it aims to build a Layer1 that traditional finance can connect to. Its core tools are twofold: compliance and privacy. These are precisely the concerns most relevant to the traditional world.

**What does the architecture look like?**

Dusk has built three core modules: DuskTrade handles access to traditional finance, DuskEVM is responsible for the smart contract layer, and Hedger provides risk management. Together, these three components embed the needs of traditional securities, cross-border trade, and corporate financing into a single chain.

Regarding the token, it’s not just a simple incentive tool but the lifeblood of the entire system—staking, transaction fees, governance voting—all require its participation.

**Can it truly solve the pain points of traditional finance?**

The longstanding issues in traditional securities markets are high participation barriers, lack of liquidity, and retail investors being unable to enter. No one has truly solved these problems over the years.

DuskTrade’s approach isn’t radical innovation but a practical, feasible path: deep cooperation with exchanges holding EU MTF / Broker / ECSP licenses, ensuring the entire asset tokenization process follows compliance frameworks, so institutions dare to truly go on-chain.

Numbers speak—their plan is to bring over €300 million worth of securities assets onto this chain.

The key design is that institutions must stake tokens to access the network; core mechanisms like transaction fees, governance rights, and profit sharing all revolve around this. The larger the asset scale, the more tokens need to be staked.

**Why is this approach more realistic?**

Many Layer1 projects that attempt to integrate with traditional finance often only scratch the surface. Dusk’s logical chain is more straightforward: instead of making traditional finance use blockchain, it uses blockchain’s determinism and transparency to solve structural issues in financial markets. Prioritizing compliance and privacy protection makes it easier for regulators to accept.

Ultimately, this is a practical approach for Web3 to become more than just a vision—fewer lofty ideals, more actionable solutions.