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In the traditional financial world, key processes such as trading, settlement, and asset management are all controlled by centralized institutions. The result is cumbersome, inefficient workflows, concerns over data transparency, and user privacy that is difficult to safeguard.
Have you ever wondered what would happen if the financial markets were moved onto the blockchain, addressing both privacy and regulatory challenges—two seemingly opposing issues?
Dusk Network is doing exactly that. It is a Layer-1 privacy blockchain tailored for regulated financial markets. Its core weapon is advanced cryptographic technology like zero-knowledge proofs. Simply put, it allows verification of transaction legality and compliance without revealing sensitive data. Asset issuance, transfer, and settlement can all be completed on-chain, enabling regulators to see what they need to see, while protecting user privacy where it should be.
Everyone knows the problem with traditional public blockchains—everything is transparent. For ordinary users, this is seen as the spirit of decentralization, but for institutions and corporate clients? It means trade secrets, holdings information, and transaction details are all exposed to the sunlight. Competitors, hackers, and malicious actors can see everything.
Dusk’s approach is to establish a "selective transparency" mechanism. Authorized regulators and participating parties can see the data they need, while others have no access. This meets financial regulatory requirements while maintaining privacy boundaries.
There is a common misconception—privacy and compliance must inevitably conflict. Actually, that’s not true. Dusk’s design philosophy is quite the opposite: privacy is not an afterthought or patch, but something embedded into the system’s DNA from the very beginning. Through zero-knowledge proofs, the network can verify that on-chain operations comply with anti-money laundering, counter-terrorism financing, and other financial regulations, while keeping user data confidential. These two goals are not only compatible but can also mutually reinforce each other.