Financial privacy has always been an old issue. Transaction information is exposed on the chain, business secrets have nowhere to hide, and regulatory requirements must also be met — this is almost an impossible triangle.

There is a project aiming to break this deadlock. Dusk Network is a blockchain protocol focused on financial privacy, and its core logic is not complicated: using confidential smart contracts as the foundation, combined with zero-knowledge proofs and a self-designed consensus mechanism. The most ingenious part is that transaction data is encrypted throughout the process, yet contracts can still execute. In other words, the system can prove that your identity is valid and that the source of funds is legitimate (meeting KYC/AML requirements), while your specific information and transaction details are completely transparent to others.

This mechanism opens up new possibilities for securitized assets, payments, and other financial applications. Institutional-grade DeFi has always lacked this kind of infrastructure that can both protect business secrets and accept regulatory scrutiny. Dusk’s idea is that privacy and compliance are not mutually exclusive; the key is how the technology is designed.