When discussions about privacy pathways reach a critical point, they always get stuck in a deadlock: the more advanced the technology, the harder it is to operate within the real financial system. Regulation, audit, and compliance become three obstacles that must be faced; total anonymity often equates to the inability to scale. This long-ignored contradiction becomes an entry point for Dusk.
Interestingly, Dusk does not follow the path of "anonymity above all else". Instead, from the real need for financial assets, they design a foundational architecture focused on securities, bonds, and other regulatory-compliant assets. They do not seek to hide everything, but rather ensure that privacy can be used reasonably within the framework of rules. This is what Dusk often refers to as "selective disclosure" — transaction details are protected, but compliance can still be verified when necessary. It appears controlled, yet is actually a pragmatic choice.
From a technological standpoint, this approach makes a lot of sense. Zero-knowledge proof in Dusk is not used to showcase expertise, but rather as a tool to validate identity, eligibility, and transaction validity. In financial scenarios, what matters more is certainty and auditability, not just high throughput. The consensus mechanism and network design of Dusk accurately reflect this.
Network tokens are also not just standalone financial symbols, but are deeply tied to the security of the network and the asset issuance process. These tokens constrain participant behavior and maintain the overall trust in the system.
Looking back, Dusk does not attempt to use privacy to oppose regulation, but rather redefines privacy within real constraints. This approach may seem less flashy, but is closer to the next step of financial applications on blockchain.
