Recently, I was chatting with friends in the finance industry, and they repeatedly mentioned a longstanding challenge: wanting to improve efficiency with blockchain technology but getting stuck on the two big mountains of compliance and privacy. This made me think of the Dusk public chain.

Dusk has been operating since 2018, taking a relatively uncommon approach—building infrastructure specifically for regulated financial institutions. This positioning is actually quite distinctive.

We often say that transparency is the biggest selling point of blockchain. But for financial institutions, excessive transparency is equivalent to exposing business secrets. Conversely, if transactions are completely anonymous, how can regulators perform anti-money laundering work? That’s where the contradiction lies.

The cleverness of Dusk is in using technology to resolve this contradiction. Its core concept is called "Auditable Privacy"—it sounds a bit complex, but it’s actually very important.

To make it easier to understand with an analogy: imagine a locked smart filing cabinet. The cabinet itself is locked, so your privacy is protected. But regulators have a special key that allows them to verify whether the documents inside are compliant, without having to open and see the specific contents.

The underlying technology uses cryptographic methods like zero-knowledge proofs, which can prove that a transaction is fully legitimate without revealing sensitive data such as the identities of the parties involved or the transaction amount.

This is especially useful for bringing traditional financial assets onto the chain—whether it’s bonds or private equity tokens, there is an urgent need for a solution that can both protect privacy and meet compliance requirements.

Architecturally, Dusk adopts a modular design, giving it strong adaptability. Different countries and regions have different financial regulations, and it can be customized and expanded according to local needs, rather than applying a one-size-fits-all template.

In terms of ecosystem, they take a pragmatic approach, launching developer-friendly compatible environments.