What is cryptocurrency DUSK Network (DUSK) and how does it work? Definition from Digimagg

What is Dusk Network (DUSK)?

Dusk Network (DUSK) is a blockchain platform focused on privacy for financial applications, utilizing distributed ledger technology to explore the growing potential and diversity of financial services. It aims to innovate in the financial sector by enabling the tokenization of securities compliant with regulations. This approach allows Dusk to create its own standard of tokens for programmable security tokens, reducing automation costs. These tokens can represent various values such as votes or dividends, seamlessly integrating with enterprise-grade operations.

The platform emphasizes business adoption, viewing privacy as crucial for future regulatory compliance and broader adoption of alternative financial applications. Dusk Network offers a private ecosystem for enterprise-grade financial applications and introduces private smart contracts ahead of similar projects in the blockchain space.

As a layer-1 blockchain, Dusk Network supports native confidential smart contracts and provides a scalable public ecosystem tailored for business-oriented financial applications. It is decentralized, open to the public, and designed to offer instant finality, scalability, and functionality.

How does Dusk Network work?

Dusk Network is a blockchain platform focused on privacy and tailored for enterprise-grade financial applications. The platform aims to broaden its range of financial services suitable for business use and enterprise adoption. It achieves privacy and decentralization through native confidential smart contracts, operated by an innovative Private Proof of Stake extraction-based consensus mechanism, and powered by Zero-Knowledge Proofs.

The layer-1 network supports the Confidential Security Contract standard (XSC), designed to ensure compliance with security regulations and offer a variety of functions for businesses and enterprises. XSC enables users to offer, issue, exchange, and manage tokenized security assets. The standard is bolstered by the Zedger transaction model, which is further enhanced by the Phoenix transaction model, providing privacy and anonymity to transactions and smart contracts.

Dusk Network features a utility token, DUSK, which serves various purposes including initiating transactions, enabling atomic swaps, deploying smart contracts, and participating in staking. In the future, DUSK will expand its functionalities to include network governance. Additionally, DUSK is the primary means of payment within the network.

Who founded the DUSK Network? (A brief history of DUSK Network's origins)

Dusk Network was founded in 2018 by Jelle Pol, serving as the business director, and Emanuele Francioni, who also holds the position of tech lead. The founders' vision was to introduce the first confidential native smart contracts and enhance privacy for financial services.

Headquartered in Amsterdam, Netherlands, Dusk Network plans to broaden the functionalities and use cases for its network and native token. As the project evolves, it aims to establish new standards in the financial sector and meet the increasing demand for private and distributed financial services tailored for business use.

What sets DUSK Network apart from others?

DUSK Network's uniqueness stems from its use cases and utility, notably its provision of a private and secure environment for enterprise-grade financial services and its XCS standard for tokenizing security assets. This allows enterprises and commercial partners to issue and manage tokenized assets within a highly secure and private environment provided by a permissionless blockchain.

Additionally, DUSK Network is the first blockchain infrastructure to offer confidential native smart contracts, ensuring privacy for users. Transactions also benefit from privacy features and near-instant finality. The network is designed to capitalize on the potential for business adoption in financial applications and services.

What contributes to the value of DUSK Network?

The value of the DUSK Network is rooted in its technical capabilities, the underlying technology, and its practical use. These aspects determine the inherent worth of DUSK as a project, which can differ from its market value. Being a tradable token in the cryptocurrency market, the market value of DUSK can fluctuate significantly.

The intrinsic value, along with the market value of DUSK represented by its price, may increase as the demand for financial services offered on the DUSK Network grows. This is how the true value of the project might eventually be reflected in the market price of DUSK, as the project gains more widespread adoption and use.

How many DUSK Network (DUSK) coins are currently in circulation?

There are presently 461,027,796 DUSK tokens in circulation out of a total of 1,000,000,000 DUSK, indicating a capped maximum supply for DUSK. This limited supply model, also used by cryptocurrencies like Bitcoin, is designed to regulate token value over time. It serves as an anti-inflationary measure, controlling the overall DUSK token supply to prevent inflation.

The market capitalization of the DUSK Network is determined by multiplying the number of circulating DUSK tokens by the current market price. This metric not only ranks DUSK among other cryptocurrencies but also determines its market share and dominance. Changes in the market cap occur as the number of circulating coins and the price of DUSK fluctuate.

Other technical data

DUSK, the utility token of the project, is compatible with both Binance Smart Chain and Ethereum, meaning it adheres to the BEP-2 and ERC-20 token standards. DUSK is a versatile token used for atomic swaps, transactions, and storage fees, serving as the primary form of payment within the network.

In terms of technical specifications, the DUSK Network's consensus mechanism is structured in three phases: Block Generation, Block Reduction, and Block Agreement, facilitated by the Segregated Byzantine Agreement (SBA) protocol. In the initial phase, SBA generates blocks with multiple participants proposing blocks per round. The second phase, Block Reduction, narrows down the choice to a single block for potential selection.

The three-phase consensus process concludes with the verification of the block for integrity and fairness before it is added to the chain. Each round consists of three stages, and multiple rounds constitute an epoch in the SBA system.

How does the Dusk Network ensure its security?

The Dusk Network maintains its security through the implementation of the Segregated Byzantine Agreement (SBA) protocol. This protocol enhances decentralization by increasing the likelihood of selecting honest nodes within the mechanism.

Compared to the Proof of Stake protocol that underpins the project's infrastructure, SBA is considered an advancement. Additionally, SBA enables private transaction amounts and achieves this through innovative approaches such as cryptographic sortition.

How to use DUSK Network?

The DUSK Network provides a platform for enterprise-level financial services tailored for business applications. It is designed to enable enterprises, along with their commercial partners, to tokenize security assets compliant with the XCS token standard.

The DUSK token serves multiple functions, including payment for atomic swaps, conversion of gas and transaction fees at reduced operational costs, and initiation of transactions. It is the primary payment method within the network and is also used to reward network participants. DUSK can be traded on cryptocurrency markets.

How to choose a DUSK Network wallet?

ERC-20 DUSK can be stored in any wallet compatible with Ethereum, while BEP-2 DUSK can be stored in wallets that support the Binance Smart Chain. The choice of wallet depends on the amount of DUSK you have and your intended use.

For maximum security, hardware wallets like Ledger or Trezor are recommended, as they offer offline storage and backup. However, they can be more complex to use and are generally more expensive, making them suitable for storing larger amounts of DUSK for experienced users.

Software wallets, available as smartphone or desktop apps, are a free and user-friendly option. They can be custodial (where the service manages and backs up your keys) or non-custodial (where your private keys are stored on your device). While convenient, they are less secure than hardware wallets and are best for smaller amounts or less experienced users.

Online wallets, accessed through a web browser, are another free and easy-to-use option, but they are considered less secure as you trust the platform to manage your DUSK. They are suitable for smaller amounts or frequent trading, provided you choose a reputable service with a strong security track record.

Kriptomat offers a secure storage solution for DUSK, allowing you to store and trade your tokens easily. Using Kriptomat ensures your DUSK is stored securely with enterprise-grade security measures and user-friendly functionality, enabling quick buying, selling, or trading of DUSK and other cryptocurrencies

DUSK Network proof of stake

DUSK combines various protocols, including Private Proof of Stake and Segregated Byzantine Agreement, to achieve decentralization, security, and privacy. This blend of consensus mechanisms enhances the efficiency and cost-effectiveness of the network.

The SBA protocol, an improvement over Proof of Stake, is particularly noteworthy for its role in ensuring security and privacy. DUSK Network is positioned as a key player in enterprise-grade financial services, offering a distributed financial market infrastructure with high privacy standards. This could pave the way for broader business adoption of blockchain-based financial services.

With its near-instant finality and planned expansion of features and financial services, DUSK has the potential to become a leading project in the decentralized finance sector. The utility and robust technology of DUSK may lead to a long-term increase in the value of DUSK tokens.

Embrace the cryptocurrency revolution and embark on your journey with the DUSK Network today!