The core innovation of the Dusk project actually lies here: it solves an old problem in the financial sector. How to say it? Protecting transaction privacy while also meeting regulatory audits—these two needs have traditionally been at odds.

Dusk's solution uses two cutting-edge technologies: zero-knowledge proofs and homomorphic encryption, enabling selective privacy protection directly at the EVM layer. The key is, this isn't for sneaky activities, but to provide the necessary confidentiality for scenarios like regulated securities trading and corporate finance.

In other words, privacy protection and compliant auditing have found a balance here. This is quite significant for institutional-level applications.