DUSK Network AMA Recap

DUSK Network AMA Recap

CryptoDiffer team

Can you introduce yourself to the community? What is your background and how did you come to the idea to create your project?

Mels Dees
Marketing Lead

First of all thank you for the opportunity. Much appreciated!

We are a privacy-oriented blockchain protocol. When we first incepted Dusk, we wanted to go beyond just payments. We then set out to create a communication layer, allowing (voice) messages and even streaming. Our project & tech lead Emanuele Francioni had back then already devised the new consensus mechanism SBA (happy to expand on that later). And, while we were working on it we discovered that lots more could be created, and we began to research and develop the “state layer”, which is needed to create smart contracts. This idea has ever since taken big leaps into what has now become the Dusk Network.

Dusk is built by a team of entrepreneurs, engineers and researchers with technical experience at Amazon, TomTom, Mozilla, Reaktor, and blockchain backgrounds (Zcash, City of Zion, NEO Research and more)

CryptoDiffer team

Can you briefly describe what is NOIA Network in 3-5 sentences?

Mels Dees,
Marketing Lead

I can certainly try!

The Dusk Network is a privacy-oriented blockchain protocol, that anyone can use to create zero-knowledge dApps. Dusk Network is secured by Segregated Byzantine Agreement (SBA). SBA includes Proof of Blind Bid (a private proof of stake implementation that enables block generators (nodes) to stake anonymously). Due to our use of zero-knowledge proofs, we aim to make Dusk available for real world applications that can adhere to strict compliance requirements, while still offering data privacy. This is also part of our adoption strategy, that focuses on the security token market, which is in need of a purpose-built blockchain.

CryptoDiffer team

What technology stands behind Dusk Network and why it’s better than the existing one?

Toghrul Maharramov,
Consensus Architect

At Dusk Network we aim to achieve on-chain privacy and programmability. We bring various key innovations: Private-Proof-of-Stake implementation (Proof of Blind Bid), ZeroCaf for fast, efficient and Bulletproof-friendly Elliptic Curve. And Poseidon, a zero-knowledge friendly hashing algorithm. These innovations bring speed, efficiency, and the most secure zero-knowledge operations. Additionally, due to the way Dusk Network is built we are capable of creating a state layer, which is needed for full privacy smart contracts.

CryptoDiffer team

What is the token utility in the ecosystem? Where it will be used and how do you plan to scale?

Mels Dees,
Marketing Lead

In regards to its utility: For some of its utility, its quite similar to Ethereum. It can be used as gas and transaction fees (during transactions but also for contract deployment ). And is used to reward the nodes who secure the network. Who in our case are block generators and provisioners. Since SBA uses a staking mechanism, DUSK can be staked by nodes to become eligible to participate in the consensus algorithm.

Furthermore, Dusk can be used as a means of payment one-way, but also two-ways (atomic swaps). Meaning that an asset issued on Dusk’s smart contracts in the future will be exchangeable for Dusk without needing a middleman.

Lastly, we are building voting and messaging functionality, and Dusk will also be required to access those operations.

Our first contract is called the ‘Confidential Security Contract’ (XSC). This contract is purpose-built for security token issuance and has all the functionality needed to do just that. In regards to scaling, we are focused on working with partners, such as legal and consultancy boutiques, and also security token platforms. Who accesses to a big pipeline of clients who wish to STO. It is strategic for us to work with them, and have them integrate the XSC standard as their preferred option – that way knowledge needs to be transferred once, and the usage of XSC can scale.

CryptoDiffer team

What are your major milestones to further expand the ecosystem this year?

Mels Dees,
Marketing Lead

The mainnet definitely comes to mind immediately. This will enable us to start showing transaction of the XSC standard. And everyone will be able to start using our technology for their own applications.

CryptoDiffer team

Let the community ask questions now!🔥

Cryptodiffer Community

Who do you consider your main competitors?

Mels Dees,
Marketing Lead

Other privacy-oriented blockchain projects racing to release zero-knowledge smart contracts. Ethereum and Stellar for Security Tokenization, even though there is a clear demand for a specialist-blockchain for security tokens. We effectively address settlement-finality and privacy (their relevance was recently demonstrated, amongst others, by PolyMath’s announcement of research into creating PolyMesh to overcome these issues). Ultimately, we are furthering parts of the same field and do not view other projects as competition, especially when our project is often so complementary to them. Security Token platforms should use Dusk’s protocol to reduce their costs and increase their compliance, rather than perceive us as competition.

Cryptodiffer Community

What is Dusk Browser Node? Do people obligated to hold tokens for mining? how profitable is it? what is ROI?

Toghrul Maharramov,
Consensus Architect

The Dusk Network Browser Node enables the users to verify Blind Bid proofs in their browsers. Yes, the users are required to stake DUSK tokens to participate in the consensus. The profitability will depend on the stake size and the number of nodes participating in the consensus.

Cryptodiffer Community

Dusk network uses SBA consensus mechanisms. So what is the advantage of this consensus mechanism compared to the consensus mechanism that other projects are using such as BFT … When does the project run the official mainet?

Toghrul Maharramov,
Consensus Architect

BFT stands for Byzantine Fault-Tolerance and is not a consensus protocol per se, rather than a generalization of a group of consensus protocols. Segragated Byzantine Agreement is a permission-less Proof-of-Stake protocol with statistical finality, meaning that probability of a fork occuring is negligible.

Cryptodiffer Community

What are the special advantages of DUSK network to be able to defeat another competitor, when the project’s goal has too many previous projects doing and developing?

Emanuele Francioni,
Project & Tech Lead

We have developed the whole network from scratch to address performance (we use by far the fastest implementation for bulleproofs zero-knowledge cryptography, we developed our own curves to allow for ZK set inclusion systems, we developed the fastest hashing algorithm to prove in ZK, Poseidon), compliance (with immediate finality, XSC security protocol for both privacy-oriented transactions, automated token restriction and issuer reserved-operations) and liquidity (we work closely with both traditional actors in the regulated market space and arising realities from the blockchain space such as Bitfinex). Plus, rather than set up shop in questionable legislations, we operate in one of the most virtuous legislation to date, The Netherlands, which legislation is harmonized throughout the whole of EU

Cryptodiffer Community

How would you address the transparency within the network given the privacy you offer in the network?

Mels Dees,
Marketing Lead

The network is fully transparent and auditable, however for an outsider (who does not need to know what is going on) the messages (transactional variables), and related values, and the sender/recipient are confidential.

Cryptodiffer Community

What is the new token standard that the Dusk Network is developing on its network is different from ERC-20 standard?

Emanuele Francioni,
Project & Tech Lead

Our confidential smart contract was developed in order to serve as a security token issuance, trading and management mechanism. As such, it will allow the functionality of controlling the supply of tokens, token ownership, whitelists, transfers and dividends of the securities under its governance. It will also offer extra functions such as on-chain governance mechanism, voting, alerts and messaging, view only permissions and buyback options.

For more information about XSC, see https://medium.com/dusk-network/zero-knowledge-smart-contracts-on-dusk-network-85f95644d673

Cryptodiffer Community

What has been the biggest technical challenge that you overcame this year? XLM, NEO, etc already have the Lightning fast blockchain solution — what is it that makes your solution better?

Toghrul Maharramov,
Consensus Architect

Working on a provably secure protocol has been quite a challenge. XLM and NEO do not support confidentiality by default and the both of consensus protocols utilized to secure the aforementioned protocols are not permission-less.

Cryptodiffer Community

What are your experiences with financial institutions regarding dividend payments in Dusk coins? 

Are they just interested in issuing FIAT-backed dividends or do they also welcome a solution with Dusk dividends?

Mels Dees,
Marketing Lead

To prevent confusion, this question purely relates to security tokens of course. In our talks with institutions we hear various things, some parties do not yet feel comfortable to do accounting of cryptocurrency, or accept price swings of ANY cryptocurrency. Meaning that they’d be deterred from Security Tokens (in general) if dividend payouts need to be done strictly through cryptocurrency. We have created/are capable of creating various technical solutions that I can briefly mention: support of stablecoins/stock dividend/stock buy back). However, as we’ve seen major improvement in recent years, I am sure institutions will become more familiar with blockchain technology.

That said, a lot of parties are interested in issuing, especially once blockchain solutions become more cost effective than traditional issuance, and provide the other promises made by the security token industry as a whole (administrative relief, cutting out middlemen where it makes sense, and liquidity).

Cryptodiffer Community

What about regulations, do you plan to achive legal stuff?

Mels Dees,
Marketing Lead

Of course we keep track of regulations. As we are an open-source provider of technology, we need to know exactly what users/partners of the Dusk Ecosystem needs. The XSC standard was designed together with various legal firms.

Cryptodiffer Community

How do you see the threat of crypto regulation and how do you plan to protect Dusk from this?

Mels Dees,
Marketing Lead

The most important thing for any cryptoproject is to have a strong legal firm assist that not only stays on top of what is changing in the legal landscape, but also actively participates. We have various parties who update us regularly where things are headed.

Cryptodiffer Community

How do you envision Dusk in 5 years?

Emanuele Francioni,
Project & Tech Lead

I envision Dusk as a global, decentralized security depository system handling tokenization information and management for a significant portion of security and commodity market. For that we are already working in close contact with CSD both in and outside of EU. From a technology perspective, we will keep innovating on the zero-knowledge cryptography and maybe even experiment with Lattice-based cryptography (which is quantum secure) or even cryptographic program obfuscation (which is currently still not a viable option – https://eprint.iacr.org/2014/779.pdf). The target is to offer a privacy-oriented and compliant world computer

Cryptodiffer Community

Can you clarify the current circulating amount of tokens?

Mels Dees,
Marketing Lead

Once the AMA is over I will update the info.binance circulating supply. Thanks for pointing out. This is the full 50% once vesting is over (1 Dec 2019).

The Coingecko supply is accurate, and am in contact with CMC.

Cryptodiffer Community

-What is difficulities and chances that DUSK face right now while crypto/blockchain market is still young and need time to grow?

-Nothing is perfect so i think DUSK is the same. Does DUSK have any weakness? What will your team do to improve and strengthen it? Did your team make any misstake in the past?

-Confidential security contract (XSC) is an interesting option of DUSK network to be used to issue, register and trade digital securities. So, for problems on XSC that is related to law and regulated countries/markets, how will DUSK network resolve this?

Toghrul Maharramov,
Consensus Architect

– I think that one of the biggest difficulties that Dusk Network faces as a protocol is the computational complexity of zero-knowledge proofs, which consume a large percentage of the computational power of the node, however, the technology as well as the theoretical basis are constantly improving and we’re expecting our protocol efficiency to improve alongside.

– I’m not sure if there is one obvious weakness that I could highlight despite the fact that, as with any other project, there are few areas in the protocol that could be improved even further.

– XSC standard is built to be complaint with the laws and regulations in our target jurisdictions.

Cryptodiffer Community

Which adjustments have been made to the original whitepaper, now that the word is out you’re writing a new one? 

Toghrul Maharramov,
Consensus Architect

Yes, the Whitepaper 2.0 is in the finalization stage and will made available soon.

Cryptodiffer Community

What strategy do you have to overcome strong rivals like ZEN, XMR, ZEC?

Emanuele Francioni,
Project & Tech Lead

There is surprisingly very little tribalism when it comes to technology. Similarly to the linux ecosystem, where you have different distros helping each other out and diversifying around different targets, the same way we have been enjoying a lot of help from researchers from Zcash and Monero, who even contributed ideas and helped with reviews and audits in some casesю

Cryptodiffer TEAM

It was a pleasure to conduct an AMA with such a cool project like DUSK Network. Thank you for your time!

@Mels_Dees @autholykos @JWP55 @toghrulmaharramov  thanks a lot! 

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