To be honest, the current RWA track is a bit chaotic. A bunch of projects are touting compliance, but when you actually read their whitepapers, you find they’re just patching things together. Essentially, they’re building on Ethereum’s transparent and permissionless layer, then slapping on a bunch of whitelist code to mimic traditional financial privacy and access mechanisms. It sounds compliant, but it’s like sticking a transparent tarp on a convertible—when the regulatory rain comes, the people inside still get soaked.

What are these projects really struggling with? They stuff KYC data into centralized databases, only to worry about hackers stealing the data. Every layer is contradictory. Dusk’s approach, however, is completely different.

It rethinks from the ground up. The virtual machine called Piecrust directly uses zero-knowledge proofs to build an automatic auditing system. It’s not about patching vulnerabilities but about adopting a fundamentally different underlying logic. The gap between the two is like a person using an abacus seeing someone with a quantum computer—completely in different dimensions.

There’s also a neglected "compliance paradox." Traditional financial institutions, whether large asset managers or investment banks, never perform compliance audits on a fully transparent public chain. That would violate the basic logic of finance. But now, many RWA projects want to force-fit this model.

The real solution should be like Dusk’s approach—building from the ground up without relying on others’ foundations, designing with financial-grade privacy and access controls from the start. Zero-knowledge proofs can verify transaction compliance without exposing the transaction data itself. That’s the true path toward systemic compliance at the institutional design level.

At this stage, most projects are still just "compliance self-indulgence," with very few actually finding technical solutions.