On a typical public blockchain, every single transaction is entirely visible to anyone who wishes to look. Naturally, this level of complete transparency presents a major obstacle for the world of regulated finance. Dusk addresses this exact challenge through a unique privacy model built on three foundational primitives, which are Notes, Proofs, and Selective disclosure.

The first of these primitives centers around Notes, operating under a framework known as the Phoenix model. Rather than storing your data and assets on an open ledger for the public to scrutinize, they are kept securely inside private notes. You can think of a note as a securely sealed record that solely you possess the ability to open. While outside observers are able to confirm that a given note exists on the network, they have absolutely no way of seeing what is held within it.

The second primitive relies on Proofs to allow these private notes to interact with one another. Whenever you need to spend a note, you are required to generate a zero-knowledge proof. This action demonstrates that all system rules were strictly followed, yet it does so without uncovering any of the underlying contents of the note itself. As a result, the broader network is able to verify the proof accurately while your personal data stays completely secure.

The third primitive is Selective disclosure, which effectively completes the entire loop. This feature grants you the flexibility to share either the full contents of a note or just particular data fields with a specific chosen entity. Whether you are dealing with an auditor, a counterparty, or a regulator, you remain entirely in control of who sees what. Ultimately, this comprehensive approach ensures privacy by default while seamlessly accommodating disclosure on demand.

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