Real-World Example: How This Works
Let's say Deutsche Bank wants to tokenize $500M in bonds on DUSK:
What Stays Private:
Who's buying/selling the bonds
How much each investor holds
Trading strategies and timing
Individual transaction amounts
What Can Be Revealed (When Needed):
Total issuance amount (public)
Compliance data to regulators (selective disclosure) #dusk
Audit trails for authorities (with proper legal requests)
KYC/AML verification (built into smart contracts)
So you get privacy for competitive advantage but compliance for regulators. That's the holy grail.
The Technical Details (Without Boring You)
DUSK uses a few different privacy techniques:
1. Confidential Transactions
Transaction amounts are hidden using cryptographic commitments
Like putting your transaction in a locked box - the blockchain can verify it's valid without opening the box
2. Stealth Addresses
Every transaction generates a one-time address
Like using a burner phone number for each call
Makes it impossible to link transactions to a single entity
3. Ring Signatures (Likely - similar tech)
Your transaction gets mixed with others
Like 10 people signing a document but you can't tell who specifically signed
Breaks the transaction graph
4. Smart Contract Privacy
Contract state can be private (unlike Ethereum where all smart contract data is public)
Uses zero-knowledge circuits to verify execution without revealing inputs.@Dusk $DUSK
