Privacy and compliance have always been two parallel lines in the crypto finance industry. Users want privacy, regulators demand transparency — this dilemma has troubled the entire sector.

Traditional privacy coins offer a straightforward solution: pursue pure anonymity. But what is the cost of doing so? Regulatory risks soar, and institutional users stay away. The market needs a smarter answer.

Dusk Network provides an alternative possibility through technology. Their core weapon is the ZK-SNARKs zero-knowledge proof protocol. What is its main selling point? "Selective disclosure" of transaction information. It sounds complex, but in essence: when you make on-chain transactions, your identity is hidden, details are kept confidential, yet you can present a "zero-knowledge proof" to regulators showing that the transaction is fully compliant — all without revealing any sensitive data.

The cleverness of this design lies in solving the trust issues of traditional finance while meeting the privacy demands of crypto users. For institutional-grade applications, this becomes the preferred privacy solution.

Beyond technological breakthroughs, ecosystem development is also underway. Dusk has already partnered with several European fintech companies to pilot privacy payments and Security Token Offerings (STO). In the DeFi space, privacy protocols integrated into the ecosystem enable users to participate in lending, wealth management, and other activities while protecting their privacy. As more institutions enter, the potential of this system continues to expand.