Participants in the crypto world often face a dilemma: on one side, they want to protect their transaction privacy and avoid transparent records of asset flows; on the other side, they must meet compliance requirements, especially when institutional players enter and real-world assets are on-chain, where proof of compliance almost becomes a passport.

The current situation is quite awkward. Most public blockchains can only choose one of the two. Public and transparent chains like Ethereum allow all transaction details to be queried, satisfying institutions and regulators, but privacy is virtually nonexistent. Conversely, early privacy coins like Monero achieved complete anonymity but scared off regulators and traditional enterprises.

Dusk Network aims to break this deadlock—using technical means to simultaneously satisfy two seemingly opposing needs. The core idea is succinct: "What should be public can be verified; what should remain private does not leak."

**Why does this track have an opportunity?**

Once traditional financial assets decide to be issued and traded on-chain, they face two non-negotiable requirements. First is investor verification (KYC), ensuring participants meet qualification standards. Second is transaction privacy protection; large traders' buying and selling intentions must not be monitored by the entire network, or they risk manipulation.

The current dilemma is that almost no public chain can handle both tasks simultaneously. This is precisely the market gap Dusk has identified. It is fundamentally a blockchain born for the digitization of financial assets, with particular focus on security tokens compliant with regulatory frameworks and private market transactions.

**How is this achieved technically?**

Dusk’s approach can be understood as "selective transparency"—using a combination of cryptography and zero-knowledge proofs to make certain information verifiable by specific roles while remaining completely confidential to others. This allows regulators to confirm participant identities and transaction compliance without exposing transaction details and fund movements to the public. Compared to fully public chains or completely anonymous ones, this is a middle ground, addressing the practical needs of traditional financial institutions entering the on-chain world.