Dusk Network is often simply described as "Privacy + Compliance Layer 1," but a deeper look into its technical architecture reveals that it is far more than just a feature stack. By employing modular layering and innovative Hedger components, it transforms seemingly conflicting requirements into a stable, operational system. The brilliance of this design lies precisely in its source of technological competitiveness.

**Is a layered architecture really so important?**

The problems with traditional monolithic blockchains are obvious—everything has to be processed in a single block, resulting in the "barrel effect." Dusk takes a different approach: dividing the blockchain into two layers—settlement layer (DuskDS) and execution layer (DuskEVM).

The settlement layer acts as the network's stabilizing anchor, ensuring finality, data availability, and the security of underlying asset transactions. A 36% staking rate guarantees the reliability of this layer. The execution layer focuses solely on handling complex tasks, such as zero-knowledge proof generation and smart contract execution. Crucially, even if the computations on the execution layer become complex, they do not slow down the confirmation speed of the settlement layer—this is the beauty of modularity. Sounds a bit like Layer 2 scaling solutions? Indeed. The difference is that Dusk implements this architecture natively on Layer 1, eliminating the hassle of cross-layer bridging.

**DuskEVM: The Wisdom of Choice**

The core of the execution layer is DuskEVM. Interestingly, it was not built from scratch but is a modification based on the well-tested OP Stack solution. This decision may seem conservative but is actually the most pragmatic—significantly reducing development risk and ensuring core stability.

DuskEVM achieves full EVM compatibility. This means millions of Ethereum developers can migrate directly without learning new systems. Privacy features are integrated natively into the execution layer, rather than added as afterthought patches.