The majority of blockchains are designed to be open-source. Any transaction, any balance, every contact is exposed to sight. Such a disclosure is pleasant in principle, but in actual markets it causes severe difficulties.
Full transparency actually leads to lower market fairness, while balanced privacy leads to healthier markets.
In real finance, the issue of privacy is not one of concealing crime. It is there to ensure fair and stable markets. Traders do not desire their strategies to be monitored by competitors. Firms do not wish to have their operational activities aired publicly. The big investors do not desire all the positions disclosed, as they become open to manipulation and front-running.
Dusk Network does not follow the same course. Dusk is constructed based on the premise that markets require privacy to operate, yet they must have a common source of truth. Everyone should be in a position to have faith in the fact that trades are legal and regulations are obeyed without all knowing the secrets.
These two things are well separated by dusk. The network ensures that a transaction is valid, that the transfer of ownership is valid and that there is compliance with rules. However, such sensitive details as trade size, balances, and strategies do not get into the hands of the population.
Example:
Consider a fund purchasing a high quantity of an asset. With a fully transparent blockchain, this will be visible to other traders and they can trade against it. The prices fluctuate unjustly and the fund in question is paying more just because its work was seen. In Dusk, it is possible to verify the transaction without making the market a live surveillance system.
Dusk will establish healthier, more real markets by asking privacy to be viewed as primary market infrastructure, and not a bonus feature.
