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DUSK NETWORK (DUSK)

A blockchain platform for programmable and confidential securities

KEY METRICS [as at 22 Jul 2019]
TickerDUSK
Price$0.232
24H Volume ($MM)$0.22MM
Circ. Supply77,882,687 (15.58%)
Total Supply500,000,000 DUSK
Project Websitehttps://dusk.network/

PROJECT OVERVIEW

  • Raised ~$8.08MM via private token sales from August to November 2018
  • Private Proof-of-Stake implementation which enables Block Generators to stake anonymously
  • Utilizes ZeroCaf to achieve fast, efficient and Bulletproof-friendly Elliptic Curve operations
  • Built by a team of entrepreneurs, engineers, and researchers from a wide variety of backgrounds (Amazon, TomTom, Mozilla, ZCash, City of Zion, Neo Research, etc.)

KEY FEATURES & HIGHLIGHTS

Dusk Network ("Dusk" or the "Project") aims to achieve on-chain privacy and programmability while maintaining high-throughput and instant transaction finality. Dusk Network is built upon these key innovations:

  • Private-Proof-of-Stake implementation (Proof of Blind Bid)
  • Consensus in three phases: Block Generation, Block Reduction and Block Agreement.
  • ZeroCaf for fast, efficient and Bulletproof-friendly Elliptic Curve operations. ZeroCaf is an Elliptic Curve developed on the Ristretto scalar field.
  • Implementation of Poseidon, a Zero Knowledge friendly hashing algorithm.
  • Browser Nodes for Zero Knowledge verification.
  • Zero Knowledge Virtual Machine architecture
  • Instant Transaction Finality: Due to the properties of the Dusk Network consensus protocol transactions are final immediately after the completion of a block, aside from a negligible probability of a fork.
  • Private Proof-of-Stake: Dusk Network’s consensus protocol, Segregated Byzantine Agreement ("SBA"), is powered by Proof of Blind Bid that enables Block Generators to stake anonymously.
  • Decentralisation: By disincentivizing resource centralization from staking pools, smaller participants are encouraged to partake in the consensus.
  • Replaceability: Consensus participants are chosen pseudo-randomly and independent of earlier outcomes.

WHAT IS DUSK?

Dusk Network is a privacy-oriented blockchain protocol featuring Segregated Byzantine Agreement to provide privacy, programmability, and contract auditability.

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, etc).

Dusk Network is currently in testnet phase and aims to be a blockchain protocol designed for easy deployment of programmable Zero Knowledge dApps, thus becoming the backbone of an open, permissionless and global privacy-oriented dApp ecosystem.

The Project aims to remove technical barriers that have hindered mainstream issuance and trading of products such as security tokens. Compliance, auditability and privacy are built into the open, permissionless Confidential Security Token Standard (“XSC”).

Project Mission

By allowing Dusk to be openly accessible, the Project's mission is to become the privacy infrastructure of choice for an entire ecosystem of solutions, whether in finance, governance, cybersecurity, or something completely new.

With a combination of privacy and compliance, Dusk is designed for the financial industry use, and as such, Dusk’s adoption strategy focuses on the security token market, which is in need of a purpose-built blockchain.

Project Value Proposisiton

  • Privacy: Dusk Network provides speed and full user privacy, while enabling decentralized application issuers and third-parties to create meaningful Zero Knowledge proofs to fulfill checks and balances, and audit & reporting requirements.
  • Permissionless: Anybody can join the network as a consensus participant without a need for approval from a central entity.
  • Public: Users do not need approval of a trusted authority to use the Dusk Network blockchain. The Dusk Network blockchain also requires minimal processing power and modest IT resources to join. All users who possess the DUSK token can participate in the consensus.
  • Compliance: Through Zero Knowledge proofs, companies and projects are able to create real world applications that can adhere to strict compliance requirements whilst still offering data privacy. This increases the ability to perform business processes on-chain, leading to significant cost reduction.

TOKEN SALE & ECONOMICS

KEY METRICS [as of 22 Jul 2019]
Token Name DUSK
Token Type ERC-20 and BEP2
Private Sale Allocation (inc. BEP2 issuance) 250,000,000 (50% of supply)
Private Sale Date Aug to Nov 2018
Private Sale Price $0.0404 USD
Amount Raised in Private Sale ~ $8.08MM
Circulating Supply 77,882,687 (15.58%)

Token Supply Distribution:

  • Private Sale (including BEP2 issuance) comprise 50% of total supply.
  • Partnerships tokens comprise 11.81% of total supply.
  • Technical Development Fund comprise 18.06% of total supply.
  • Marketing & Events tokens comprise 7.29% of total supply.
  • Team tokens comprise 6.42% of total supply.
  • Advisors tokens comprise 6.42% of total supply.

Private Sale Overview

  • Dusk Network’s Private Sale was conducted from August 2018 until November 2018 for 0.0404 USD per Dusk, raising ETH at a price of 176.45 USD / ETH, selling 200,000,000 DUSK and raising a total of 8,075,557 USD. A final 50,000,000 DUSK was reserved to offer to the Binance community via BEP2.

Token Governance & Use of Funds

As of July 2019, Dusk Network has used approximately 17.6% of TGE funds according to the allocations below:

  • 56% R&D
  • 6% Operational
  • 11% Marketing & PR
  • 18% Business Development
  • 9% Legal & Audit

Dusk Network holds funds primarily in fiat bank accounts to fund operational costs. Any crypto holdings are kept in cold storage via multi-signature wallets.

DUSK Token Release Schedule

The following chart represents the number and breakdown of all DUSK tokens that are to be released into circulation on a monthly basis.

DUSK Token Overview & Use Cases

  • The DUSK token is used to stake and participate in the consensus.
  • In addition, the DUSK token is used to pay for transactions, deploying dApps, and as gas. The token also serves as rewards for the consensus participants.
  • DUSK can be traded for XSC-based tokens, both one-way and through atomic swaps.
  • The DUSK token will be used for on-chain governance within XSC once it is released.
  • In Dusk Network, block rewards are paid through an emission of DUSK defined in the protocol. The majority of all newly issued DUSK will be rewarded to consensus participants, while a minor portion will go to a technical development fund, creating an autonomous funding mechanism for the long term research and development.

ROADMAP & UPDATES

Original Roadmap & Achievements
PLANNED DATE MILESTONE ACTUAL DATE TIMING COMMENTS
2018: Q4 Dusk restricted Devnet 2018: Q4 On time SBA consensus algorithm in Dusk Network Whitepaper
2019: Q1 Blind-bid Implementation 2019: Q1 On time ZeroCaf paper
Blind Bid protocol
2019: Q2 Private Testnet 2019: Q2 On time Cryptography Module
Poseidon Implementation
2019: Q2 Confidential RegTech 2019: Q2 On time Browser Nodes
XSC-Confidential Security Token standard
Fully private account-based model for layer 2 tokens and smart contracts
2019: Q3 Public Testnet Launch N/A In Progress Blind Bid protocol v0.22
Live coding session

Updated Roadmap

Q3 2019: Testnet Iteration 2
  • Release of Voucher Seeder, Block Explorer, and Alternative Transactional Model
  • Release of Zero Knowledge Virtual Machine Architecture
  • Deployment of Confidential Security Digitization
Q4 2019: Public Launch
  • Release of Zero knowledge Virtual Machine integration
  • Release of GUI wallet
  • Release of Regulator API
  • Mainnet Launch


Q4 2019: Adoption
  • Integration with Security Trading Venues
  • Issuance on XSC
  • dApp deployment
  • Implement space efficiency - block compression


Q1 2020: Scale
  • Research Horizontal Scalability - Network partitioning
  • Implement P2P ZK channel engine

Commercial Partnerships and Business Development Progress

  • Co-developed the requirements for the XSC standard with legal and commercial partners that want to adopt the mainnet to issue and manage security tokens.
  • Business relationships with cryptocurrency ecosystem providers for further usability towards mainnet. (e.g. exchanges, staking websites, hardware integrations)
  • Onboarded advisory board with strong Finance & Web backgrounds (such as Gary Quin (BlackRock / CreditSuisse) and Patrick de Laive (TNW / TheNextWeb).
  • Expand protocol usage into both primary and secondary security token market, capturing deal flow for tokenized asset issuance, management, and trading.

Partnerships include:

  • CipherBlade: CipherBlade is a cybersecurity firm that deals with on-chain analytics and secure company infrastructure. CipherBlade advises Dusk on their digital infrastructure and key security considerations for tech design.
  • BlockVenture Coalition: BlockVenture Coalition is the world’s largest blockchain university network. The BVC allows for Dusk to effectively tap into the cutting edge blockchain research coming out of the university scene. Dusk’s partnership with the BVC will allow for the exploration of a PhD program, expansion of strategic hiring, and referral of top developers to the Dusk ecosystem.
  • Watson Law: Watson Law is a blockchain legal studio. Dusk and Watson have created legal frameworks for security token issuance and trading. Watson also is featured as a crucial design partner for creating Dusk's compliance frameworks. Characteristics like fork resistance, settlement finality, and digital signatures were defined and developed together.
  • The Reserve: The Reserve is a boutique investment bank and strategy consulting firm specialized in structuring the financing of emerging technologies. The Reserve is leveraging Dusk for the tokenization of securities and to facilitate private and compliant asset issuance and trading.

TEAM OVERVIEW

  • Emanuele Francioni
    Project and Tech Lead

    Former Executive Director at Web 3 Ventures, Founder of GoSparc BV and Beestar, R&D lead at TomTom.

  • Jelle Pol
    Project and Business Lead

    Co-founder of Informance Group, former Blockchain projects manager at Shell.

  • Fulvio Venturelli
    Lead Researcher & DevOps

    Former Executive Director at Web 3 Ventures, Tech Advisor at UNL, co-founder of Beestar.

  • Mels Dees
    Marketing & Operations

    Co-founder of Informance Capital and Informance Consulting, former Project Consultant at Rabobank, MsC Business Economics.

  • Pascal Putman
    Process & Finance

    Co-founder of Informance Consulting, former Project Manager at PostNL and consultant at ABN AMRO.

  • Jeske Eenink
    Communication & Operations

    Former Business and Marketing at Web 3 Ventures, Innovation Coach at 2SQRS.

  • Toghrul Maharramov
    Consensus Architect

    VM Researcher and XSC Author. Former NEO Research, City of Zion.

  • Dmitry Khovratovich
    Lead Cryptographer

    PhD in Computer Science, Founder and Security Lead of ABDK, co-creator of equihash (Zcash), Argon2, Guru and Poseidon.

  • Matteo Ferretti
    Lead VM Architect

    Former Software Engineer at Mozilla, TomTom, and Reaktor.

  • Kevaundray Wedderburn
    Blockchain Engineer

    Former Engineer at NEO Research and City of Zion, focusing on Bulletproofs and arithmetic circuits.

  • Jules de Smit
    Blockchain Developer

    Former Freelance Dev and Lead Solidity Engineer at Terawatt.

  • Nicola Paolucci
    Senior Full-Stack Developer

    Former Full-Stack Developer at durdn.com, Senior Developer Advocate at Atlassian.

  • Carlos Perez Baro
    Blockchain Developer

    Former Rust Core Dev at Caelum Labs, Full Stack Dev at Atos.

  • Georgi Goranov
    Blockchain Developer

    Fomer C++ Dev at RDF and Concurrent Systems, Web Dev at Shippit.

  • Luke Pearson
    Junior Cryptographer

    Cryptographic protocols, Elliptic curves, ZK & hash functions.

TRADING DATA

Liquidity

DUSK token is currently listed on Binance DEX, Bitfinex, Ethfinex, and Bittrex. Core crypto trading pairs include DUSK/BNB and DUSK/BTC; core fiat trading pair include DUSK/USD.

TECHNICAL OVERVIEW

Github Overview

Dusk Network has a total of 6 public repos and 13 additional private repositories. Other public repositories are migrations from private repositories, where the main development activities take place. Since the testnet release, all of Dusk’s private repositories are gradually moved to the public domain, where everyone can inspect and make use of the code. Additionally, Dusk will use selected repositories to start accepting community developer input.

Top Public Github Repositories

Dusk-zerocaf

Implementation of the Doppio curve over the Ristretto Scalar field.

3 Contributors   291 Commits  
Dusk-Crypto

Cryptography Module. BN-256, BLS, bLSAG, Range Proof.

2 Contributors   3 Commits  
Dusk-Blindbidproof

Implementation of the Blind Bid Protocol, including a zk-proof prover and verifier.

1 Contributor   1 Commit  
Dusk-Poseidon252

Poseidon: New Hash Function for Zero Knowledge Proof Systems.

3 Contributors   1 Commit  

Top Private GitHub Repositories

Dusk-Blockchain

Golang reference implementation of the Dusk Network Protocol.

8 Contributors   1,810 Commits  
Dusk-infra

Dusk Testnet monitor and alert reporter.

2 Contributors   38 Commits  
Dusk-zk-server

Dusk server Zk dispatcher and verifier.

2 Contributors   22 Commits  
Dusk-Wallet

Golang implementation of the Dusk Wallet.

3 Contributors   76 Commits  
Dusk-Seeder

Dusk Voucher seeder: gateway to the Dusk Network.

2 Contributors   21 Commits  

PRODUCT & METRICS

Dusk Network uses Zero Knowledge cryptography to allow network participants to prove the correct outcome of a wide range of operations (i.e. transacting a lawful amount of tokens, participate to a blind bidding auction, prove right-to-access to a service, etc) without revealing identities or any transaction details while provide proof of correct computation in a trustless manner. The browser nodes are used to provide these different types of verification.

Dusk nodes compete in the block selection process by anonymously committing (i.e. staking) an undisclosed amount of Dusk tokens and thus prove compliance to the process by generating a Zero Knowledge proof of such transaction. By delegating to the browser the workload of verifying (or even generate) Zero Knowledge proofs, they can leverage game theoretic principles to let the community help with the computation power required to verify Zero Knowledge proofs multiple times and bring Dusk Network one step closer to a fully browser based blockchain experience.

The recently released Dusk Browser Nodes allows the users to verify Zero Knowledge proofs while the browser is idle. The demo can be used in both the Chrome and Brave browsers, and can be found in the Chrome Store.

BLOCKCHAIN & NETWORK DATA

Segregated Byzantine Agreement

The roles in the protocol are split between two different node types: Block Generators and Provisioners. Block Generators compete in a recurring lottery for the right to submit block candidates, while Provisioners run consensus over the selection of the lottery winners and acceptance of their proposed block. In order to become Block Generators, full nodes submit a confidential transaction called Blind Bid. Provisioners, instead, are required to stake their DUSK publicly, while participating in the consensus.

How is Consensus Achieved

Blind Bid Phase

During the Blind Bid phase, aspiring Block Generators stake an amount of DUSK for the right to participate in the block generation lottery. The stake transaction is called a Blind Bid, because the amount of DUSK staked and the identity of the Block Generator are kept confidential. The Blind Bid also carries a secret number 'k' chosen arbitrarily by the Block Generator. This way she can claim ownership of her own transaction at any time, despite its confidentiality and without disclosing her identity. All valid Blind Bids are kept in a Merkle Tree saved on the blockchain.

Consensus Phase - Block Generation and Selection

During each round, Block Generators use their Blind Bid to run a non-interactive lottery and obtain a score. The amount of DUSK in the Blind Bid positively affects this score. Thus, Block Generators anonymously transmit their proposed block to the Provisioners alongside the obtained score and the Zero Knowledge proof of Blind Bid; therefore proving knowledge of the embedded secret 'k' and the correctness of the score computation. Due to the reliance upon Zero Knowledge proof of correctness, proof of Blind Bid provides a significantly higher level of security if compared to public Proof-of-Stake systems while showing an equal resilience to Sybil attacks. A committee of Provisioners validates all submissions and select the candidate block with the highest score.

Consensus Phase - Block Reduction

After the Selection phase, a small committee of Provisioners perform Block Reduction: a two step routine to gather Provisioners' signatures and assure convergence over a single block. If more signatures than a threshold of 75% of committee participants are collected, the candidate block is then established. The committee chosen for Block Reduction is always a small subset of the entire provisioner population, deterministically extracted through a non-interactive algorithm called "deterministic sortition". The non-interactive deterministic extraction algorithm additionally enables every node in the network to calculate who is in the committee from public parameters. This can be used to single out compromised participating Provisioners and decrease their reputation.

Consensus Phase - Block Agreement

The Block Agreement is an additional phase designed to guarantee immediate finality to the selected block and provide protection against the "timeout fork" attack. During this phase, an additional committee gathers and verifies the signatures collected at the Reduction phase. This phase provides a statistical guarantee that at least one honest node has received a set of votes exceeding the minimum threshold required to successfully terminate the respective phase of the protocol.

If the candidate block does not reach sufficient signatures, or agreement votes, the candidate block is omitted from the pool of candidate blocks and the process loops back to the selection stage. This time another candidate block with the highest score is selected and the process repeats until a favorable outcome is reached.

COMMUNITY DATA

Dusk Network aims to build the developer and end user communities by providing the proper documentation on code, academic research papers, package managers, tools and campaigns to drive adoption of the chain.

Social Community Overview & Strategy

The core adoption strategy is based on three pillars:

  1. Technology Focus: Dusk Network is driven by innovations in various fields, most notably Zero Knowledge. Dusk Network provides speed and full user privacy, while enabling decentralized application issuers and third-parties to create meaningful Zero Knowledge proofs to fulfill checks and balances, and audit & reporting requirements. An innovation that opens up entirely new use cases to millions of users.
  2. Community / Developer Enablement: Dusk Network promotes various initiatives and technology driven campaigns on the subject of Zero Knowledge cryptography. Technical team members are regular speakers on the topic of Zero Knowledge, and the Project also interacts with users online. Examples are live coding sessions, and research walkthroughs of recent releases on live streaming platforms such as Twitch. On the end user side, Dusk sees their strongest communities in the EMEA and APAC regions. They organize meetups and online events to interact on business use cases and protocol adoption. Increased engagement is planned for the regions, starting with an EMEA meetups. Together with their marketing advisors they are planning a large European conference where Dusk plays a central role.
  3. Paving the Way: Dusk Network’s business team is paving the way for security token issuance and trading using its XSC smart contract standard by integrating with multiple security token venues to offer XSC as their standard of choice. This community is more B2B oriented and focuses on physical presence. Dusk organizes events in the EMEA region to capture and guide promising traction.

To date, the developer enablement programs have released multiple research documents and code documentation including a ZeroCaf Package, with additional SDKs forthcoming to promote a seamless developer experience both for current blockchain developers and cryptographers. Finally, a combination of traditional media outlets is utilized, such as Twitter, Telegram, LinkedIn, monthly newsletters and blogs. These media are used to build general awareness around protocol development and provide key updates to the community. New channels are always added, such as Discord in Q2 2019.

Community and Social Channels

APPENDIX

Advisors

Protocol Documentation

Live UI

Conferences

Medium Articles

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