Dusk Network (DUSK) is a cryptocurrency associated with the Dusk Network blockchain. It is currently still an ‘ Ethereum -based token’, also known as an ERC20 token, but will be convertible to its proprietary DUSK Coin when the Dusk Network main net goes live.
What is DUSK designed for?
DUSK is designed as the means of payment within the Dusk Network blockchain. Similar to Ethereum, it can be used to pay transaction fees, or to buy tokens issued on Dusk Network. The blockchain is maintained by nodes, which are reimbursed through these transaction costs and receive a subsidy in the form of block rewards.
Dusk Network is being developed to support financial applications that require a certain degree of privacy – for example because they contain confidential information. DUSK has developed the ‘Confidential Security Contract’ (XSC) standard for this. This is a token standard that allows companies to digitize shares.
According to the creators of this standard, privacy smart contracts are the most important ingredient that is still missing in the public blockchain market. The crux of the Dusk Network blockchain is therefore privacy, because while various parties (including Ethereum) are working to make privacy possible for their smart contracts, it is essential that the transaction costs paid also know this privacy. This prevents the privacy from being unraveled, and the transmitter still losing its privacy.
So Dusk Network is really committed to enabling complete privacy for the users of smart contracts. The company does this by developing new techniques, such as its own zero-knowledge proof system, a new way to launch privacy smart contracts, and Proof of Blind Bid – part of the consensus mechanism that guarantees privacy.
The product is aimed at companies active in the financial sector, who need this privacy standard to comply with GDPR or European MiFID legislation. The issuer of an XSC security token can still see which users there are, and how much ownership of the coin they have. This makes it possible to enable shareholder registers, and audit trails. A requirement to be able to comply with various strict financial regulations.
Unlike other cryptocurrencies, such as Ethereum and Stellar, for example, DUSK is designed with the specific purpose of serving the demand of the financial markets. In this explanation you can read everything about Dusk Network and the DUSK Coin.
Who is the creator of DUSK?
Dusk Network, the company behind the DUSK Token, was founded in 2018 by five founders, each with a background in the IT world. The best known are Emanuele Francioni, the Technical Director and Jelle Pol, the Business Director.
Emanuele is an experienced entrepreneur who has managed several development teams and R&D departments. He has worked for companies such as TomTom, Commerzbank and Vitrociset. Jelle Pol is also an experienced entrepreneur, he was one of the founders of the blockchain team at Shell, a few years later he said goodbye to Shell, to set up his own blockchain consultancy. Jelle is the business card of Dusk Network and a frequent guest at the various blockchain alliances and working groups. He is an advisor for the Dutch 2Tokens project, in which Rabobank, ABN Amro, AFM, Economic Affairs and Erasmus University also participate.
Dusk’s development team brings a lot of experience from, for example, Amazon, Mozilla and PostNL, but also blockchain projects ZCash, NEO, Ethereum and Ethereum Classic.
The project is not just a new blockchain. At Dusk Network they want to go big. That is why various new technologies are being developed that should make the blockchain experience a lot faster and more scalable, but also a lot more confidential. Every company must be able to use blockchain without high entry costs, and be able to assume that data is not just interpretable for everyone, unless it is consciously chosen. For example, zero-knowledge techniques are used that guarantee privacy, and the user can choose whether a transaction is transparent or encrypted.
Especially in recent years, blockchain privacy has become an increasingly important topic. The largest blockchain projects are now committed to more privacy, and the financial sector sees privacy as a basic ingredient that should be there. Francioni and Pol therefore devised the Dusk Network blockchain together with the three other founders, with the DUSK token as the essential subject. But what makes this system better, and why does it work with cryptocurrency?
Similar to Bitcoin or Ethereum, DUSK is intended to be the currency of a new type of blockchain. According to the creators of DUSK, the current supply of blockchains is not sufficient. Dusk Network is therefore developing a blockchain that uses the zero-knowledge proof system PLONK, Poseidon hashing, Kadcast p2p network, the Phoenix transaction model, Zedger for audit trails and Kelvin for optimized blockchain storage. Below you will find a brief explanation of the different systems.
PLONK is a zero-knowledge proof system that came out of the top hat of Aztec Protocol in 2019 . The system is an alternative to the well-known bulletproofs and zk-snarks, with which you can quickly get the speed of zk-snarks, and the flexibility and confidence of bulletproofs. The Dusk Network team has created the first PLONK library in the Rust programming language.
Poseidon was developed by Dmitry Khovratovich , Senior Cryptographer at Dusk Network and Ethereum Foundation. Poseidon works extremely well with PLONK and a strong way to encrypt scalars (a particular data type common within Dusk Network).
Kadcast is a new peer-to-peer networking protocol released by the Technical University of Berlin in 2019. It is a system that sends messages between nodes based on a kind of constantly updated bell tree. This model is more than twice as fast as the popular gossip protocol, which haphazardly sends messages and is used by almost all blockchain networks.
Phoenix is a privacy-protecting transaction model, which is partly based on the UTXO model used in ZCash. Phoenix makes it possible to send privacy transactions, whereby the transaction costs (gas) and coinbase transactions also have privacy.