The Rationale: Privacy Meets Regulated Compliance

The technical design directly addresses the crypto-trilemma's "privacy vs. compliance" pain point. By using selective disclosure through ZKPs, Dusk enables confidential transactions where data is inherently verifiable. A regulator can be given a "view key" to audit a transaction's validity without exposing other sensitive data. This is not a bolt-on feature; it's by architectural design. The reasoning is profound: for enterprise and institutional adoption, you don't sacrifice privacy for auditability. You cryptographically guarantee both simultaneously, a feat achieved by making ZKPs a core consensus requirement.

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