Hedger Protocol: A New Benchmark for Compliant Privacy on EVM
Privacy has always been a pain point in blockchain finance: public ledgers deter institutions, while complete anonymity fails to meet regulatory requirements. Dusk Network's Hedger Protocol perfectly resolves this contradiction—achieving "privacy yet auditable" transactions in an EVM-compatible environment, with the Alpha version now live.
Hedger combines two major cryptographic technologies: zero-knowledge proofs and homomorphic encryption. Zero-knowledge proofs ensure transaction validity without exposing details, while homomorphic encryption allows direct computation on encrypted data. This means financial institutions can conduct risk assessments, yield aggregation, or multi-party computations without decryption, greatly enhancing data security.
After the launch of the DuskEVM mainnet, Hedger becomes an essential tool for developers. Whether issuing privacy bonds, conducting confidential tenders, or managing private equity funds, Hedger enables operations to be completed on-chain without disclosing sensitive information. Regulators can simply review the proof to verify compliance without needing access to raw data.
The deep integration with DuskTrade further highlights its value. RWA transactions on the platform (such as €300 million tokenized securities) will achieve confidential matching and settlement through Hedger, protecting transaction party privacy while meeting European regulatory requirements.
Hedger's modular design allows for privacy to be plug-and-play. Developers do not need to build complex encryption logic from scratch; they can simply call the Hedger interface to add a privacy layer to Solidity contracts. This lowers the development threshold for compliant DeFi and RWA applications.
In the context of increasingly stringent global regulations, Hedger gives Dusk a significant differentiated advantage. It is not a simple copy of other privacy solutions, but a solution tailor-made for regulated finance. In the future, Hedger will expand to more scenarios, such as supply chain finance, medical payments, and other fields.
Dusk proves through Hedger: on-chain finance can simultaneously possess privacy and compliance. This is the blockchain that institutions truly need.
