Recently, many projects have been touting "modularity," but to be honest, most are just breaking down performance into parts. Dusk is different — its modularity is fundamentally aimed at regulated financial processes.

How is the architecture divided? The consensus layer (L1) is responsible for transaction ordering, finality, and anti-censorship, which is the technical foundation of "settlement certainty" in legal terms. The execution layer (L2) flexibly supports various virtual machines, specifically running complex financial business logic and privacy computations. With this division, regulators can audit and certify the security and finality of the consensus layer, without needing to scrutinize each privacy transaction detail. They only need to access data through authorized keys when necessary.

What’s the clever part of this design? It allows upgrades to compliance modules and privacy algorithms without hard forks. In financial markets where regulatory rules change frequently, this flexibility is crucial. Institutional clients can assemble financial products that meet local judicial requirements using Dusk’s components, much like building with LEGO. The RWA team can directly invoke mature compliance and privacy modules, avoiding the need to learn cryptography from scratch, which clearly lowers the development barrier.

From an ecosystem perspective, reduced developer costs mean more professional-grade applications can be created more easily. And as the complexity of the ecosystem increases, the utility of the core value carriers embedded across all modules also grows.

In simple terms, institutional-grade blockchain isn’t about speed; it’s about clearly thinking through governance, upgrades, and regulatory collaboration during the architecture phase. Dusk’s approach in this regard is worth paying attention to.