For this week’s feature on the best performing token of last week, we will cover Dusk Network, a new digital ledger that aims to satisfy the global standards of privacy requirements, while also allowing transparent audits by the public.
Their focus is to develop a privacy-oriented framework, which can be used by issuers of digital securities to strengthen the solidity of the assets and fulfill the conditions defined in the agreements with their shareholders, as well as the applicable legislations at certain times and in different locations. They called this framework the ‘XSC’ (Confidential Security Contract), and its ultimate purpose is to be implemented in cases regarding big data or important amounts of money.
Strong Foundations
Their plan is to build on top of different privacy measures oriented towards the senders, recipients, peers and transactions separately. Namely, a system of stealth addresses will protect the identity of the recipient, a particular signature technology to keep the sender in anonymity, a separate anonymous layer for peers and concealing of transactions during the block creation process.
Stealth Addresses
Following the Elliptic Curve Diffie-Hellman protocol, the Dusk Network can generate two keys for each user, one private (used to safely locate the user’s wallet) and one public (the one used for transactions). Given that only the network itself will be able to link one address to the other, and the one linking the funds to the wallet is completely private, the recipient is protected by an additional layer of privacy.
RingCT Signatures
Similar technologies are already being used by other blockchains like Monero, where the sender’s identity is protected along with the total amount of the transaction by requiring a transaction exceeding the required amount to be placed publicly, then the sender can send the change back to themselves. This, on top of the stealth addresses assigned to each user, ensures that the identities are tightly protected.
Anonymous Network Layer
Dusk Network will also implement technologies to protect the peers that vote during the block generation. This involves integrating a bidirectional routing mechanism, fully compatible with I2P’s Garlic-Routing technology, making it practically impossible for an eavesdropper or a malicious user to identify Dusk-related activity from the one on other networks.
The difference between what the Dusk Network offers compared to its many competitors lies in the thought process behind its conception: to focus separately on the privacy of every actor in the process of transaction verification and block building and then integrating all the found solutions into a solid, secure network that can certainly protect the related data. And this difference becomes even more apparent when you consider big names like the Block Venture Coalition, Bitfinex, Ethfinex, Bittrex and Binance have all partnered with Dusk.