2026-01-20 02:32:40

Blockchain implementation in the financial sector has always been stuck on a difficult problem—how to meet privacy needs while passing audit compliance? The latest white paper released by Dusk Network offers an interesting approach.

They devised a dual-mode design: Moonlight handles publicly traceable transactions, while Phoenix is responsible for privacy protection. This architecture aligns with regulatory requirements like the EU Travel Rule on one side, and reserves space for scenarios requiring privacy on the other. In simple terms, it embeds privacy features directly into the compliance framework.

This is quite attractive to traditional financial institutions. Some financial institutions are already paying attention to this technological route. If this solution proves effective in practice, it could offer new reference points for scenarios like RWA and cross-border settlements.

However, from an industry perspective, the real test is still ahead. Whether it can be scaled and implemented depends largely on the adaptability of the regulatory environment. Having a clear technical approach is good, but how far privacy computing can evolve within a compliant framework still depends on how the market and policies respond.

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UncommonNPC

· 13h ago

Dual-mode architecture sounds good, but honestly, regulation is still a mystery... --- The combination of Moonlight and Phoenix would be amazing if they can really operate in the EU. --- Privacy and compliance are essentially contradictory; Dusk managing to balance both would be remarkable. --- Wait, would traditional financial institutions really adopt this方案? Feels more like armchair strategizing. --- Don't hype it up too much before large-scale implementation; technology might be ready, but regulators may not buy it. --- RWA definitely needs such a solution, but it might still take a long time. --- Ultimately, it depends on each country's attitude; if one country opposes, the whole plan fails. --- It seems Dusk is betting on future regulation improving, quite a bold move. --- No one has truly mastered privacy computing; everyone is still in the trial-and-error stage. --- Cross-border settlement solutions have been needed for a long time; bringing it up now feels a bit late.

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BuyTheTop

· 19h ago

Dual-mode listening sounds pretty good, but I think the key still depends on how the EU will actually approach the situation. Whether Moonlight and Phoenix can truly operate in real-world scenarios seems much more challenging than the nice words in the white paper. If this system can really be scaled up, traditional institutions will definitely flock in, and that's when the real test will begin. Privacy and compliance are fundamentally at odds; their approach is an attempt at a compromise, but whether the compromise can succeed remains to be seen. If the RWA part can truly utilize this architecture, it would be interesting, but the prerequisite is that regulation must cooperate.

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screenshot_gains

· 19h ago

Dual-mode sounds good, but I always feel that regulation won't accept it so easily. Can it really be implemented?

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TestnetNomad

· 19h ago

The dual-mode design sounds good, but can this setup really operate under the regulatory frameworks of various countries? It feels like another idealistic and ambitious plan. Privacy and compliance are inherently contradictory. Dusk's approach is a kind of compromise, but the real challenge isn't technical; it's how policies will follow up. Honestly, if RWA can truly solve privacy and compliance issues, it would be a major event. But I’ll wait to see the actual implementation before making any judgments. That's why traditional finance is so indifferent to on-chain privacy solutions—technology is there, but without policy support, everything is pointless. I like the design ideas behind Moonlight and Phoenix, but the question is whether they will be directly rejected by regulators. Embedding privacy into a compliant framework is indeed innovative, but the EU's stance is still uncertain. Mass adoption is still a long way off unless a major economy takes the lead. This dual-mode architecture is logically clear, but I doubt it can be compatible with global regulatory systems. It feels like another white paper that looks great, but the actual implementation will be hindered by various rules and regulations.

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AltcoinTherapist

· 19h ago

How to balance compliance frameworks and privacy is indeed a longstanding difficult problem... The dual-mode sounds good, but it depends on whether it can truly be implemented. Are traditional financial institutions really paying serious attention? I remain skeptical about this. Having only technical solutions is not enough; regulation is the real bottleneck. If RWA can really be implemented successfully, that would be amazing, but it still feels too idealistic. How regulators respond is truly the biggest variable; it's not something the technical team can decide. Moonlight and Phoenix sound flashy, but they need to be practically usable. If this set of solutions can truly be scaled... I might reconsider the future of privacy coins. What is the cost of compliance compromises? Has anyone thought about this? Regulatory friendliness ≠ true freedom; this needs to be thought through carefully.

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