Many investment banks and asset management giants are experimenting with blockchain, but large-scale practical applications are few and far between. What's the core issue? Simply put, it's a conflict of理念.

Traditional finance emphasizes controllability, privacy, finality, and clear accountability, while many public blockchains prioritize complete transparency and censorship resistance. Isn't this an irreconcilable contradiction?

Dusk Network's approach is quite different. This Layer 1 protocol was designed from the outset to bridge this gap, providing financial institutions with a pathway that meets regulatory requirements while enjoying the advantages of blockchain.

Its core strength is called "modular architecture," which simply means high flexibility. Financial institutions can proceed step by step:

**Phase One: Small-Scale Pilot**
Start with internal or joint projects on a limited blockchain. Private fund registration, internal settlement, KYC data sharing platforms... all are possible. The key is that these pilots use the same technical foundation, making future migration to more open environments low-cost and low-risk.

**Phase Two: Multi-Organization Collaboration**
Several banks collaborate on a pooled loan, or multiple institutions build a permissioned application chain, sharing business logic and data while protecting customer information and trade secrets through privacy technologies. This allows cooperation without fear of data leaks.

This incremental approach means financial institutions can test and learn with low risk, and for the entire ecosystem, it offers a practical path for blockchain to truly integrate into traditional finance.