When it comes to blockchain, the first word that comes to many people's minds is "transparency." But those who truly understand how the financial system operates know that applying this logic to real-world finance can lead to big problems.

Account balances, transaction amounts, asset allocations—these are all confidential in the financial world. If this data is laid bare on a public chain, the consequences include two aspects: first, compliance issues and being called out; second, participants' business privacy being completely torn apart. This is also why many institutions are hesitant about existing public chains.

DUSK's approach is somewhat unconventional. It uses zero-knowledge proofs, a cutting-edge technology, to achieve a strange balance—transaction rules can be verified, but you cannot see any sensitive details. In other words, the system proves that "the rules are correctly executed" without revealing "what exactly happened."

What's more clever is that this isn't a patchwork solution for upper-layer applications but is directly integrated into the protocol's core. This means that all financial applications built on it have privacy protection as a default setting, without extra effort. For the financial system, this kind of stability and predictability is crucial.

Interestingly, DUSK doesn't oppose regulation. It has designed a selective transparency mechanism, allowing regulatory authorities to perform audits with authorization, without causing information leaks across the entire network. Privacy and compliance here are not mutually exclusive but can coexist.

On a broader scale, for blockchain to truly integrate into the financial system, it must first learn to play by financial rules. DUSK offers exactly such a more practical technical path.