Traditional financial institutions face an awkward multiple-choice dilemma: public blockchains are like transparent glass houses, exposing all transaction details, leaving no room for business privacy and compliance risks; private blockchains are like enclosed rooms, with controllable information, but at the cost of decentralization and interoperability. This dilemma has been troubling the industry since 2018.

Dusk Network has chosen a third path. Rather than calling it a public chain, it’s better described as a precise surgical tool—a "law-friendly privacy solution" tailored for financial institutions. In this ecosystem, participants' identities and transaction behaviors are protected by privacy, making them untraceable like moving through a dense forest. But the key is that regulatory authorities holding a legitimate "search warrant" can verify the compliance of a specific transaction according to established rules, without illuminating the entire forest.

How is this achieved? It relies fundamentally on cryptography. Dusk implements "programmable privacy" directly at the protocol layer through technologies like zero-knowledge proofs. The key information of a securities transaction is fully encrypted externally, but the system has a built-in "conditional disclosure" switch. When predefined legal conditions are met, authorized auditors can verify transaction compliance—such as confirming that participants have completed KYC—without needing to see all transaction details. Coupled with a modular development framework, building financial applications that protect trade secrets while remaining fully compliant (like securitized token platforms) becomes possible for the first time.

Why is it so difficult for traditional assets worth trillions to go on-chain? The core pain point lies here. Dusk’s emergence aims to build a truly accessible bridge between the ideals of decentralized technology and strict real-world regulations. The success or failure of this attempt could redefine the future landscape of finance.