Everyone has heard about privacy in blockchain, but it often conflicts with legal requirements. The Hedger protocol from @Dusk breaks new ground by offering not “anonymity” but “audit-proof privacy by default.”
Imagine a digital asset. To all observers in the transaction chain, it is simply an encrypted token—the amount, sender, and recipient are hidden. This protects against front running and strategy disclosure. However, thanks to zero-knowledge cryptography (ZKP) and homomorphic encryption, the protocol itself can mathematically prove that a transaction is legal without revealing its details.
What if regulators have a court-authorized order? The system allows them to be given a key to decrypt a specific transaction without compromising the privacy of the entire network.
This makes $DUSK
the foundation for decentralized funds, private trading platforms, and tokenized assets, where customer privacy is not an option but a requirement, and compliance is not a problem but a built-in feature.