Privacy and compliance—these two words are often at odds in traditional finance and the crypto world. But Dusk offers a different approach.

The core logic is straightforward: on-chain transactions default to hiding amounts and address information, but with authorized keys, the flow of funds can be fully traced. This way, financial institutions can protect sensitive data while meeting regulatory compliance requirements—neither side is offended.

This mechanism is especially useful in DeFi. Public on-chain data is easily targeted by arbitrageurs; large transactions can be front-run or subjected to sandwich attacks as soon as they appear. Privacy-first design can effectively prevent such risks while retaining auditability, making it transparent to regulatory agencies.

Currently, the crypto market faces increasing restrictions on privacy features, and compliance has become a prerequisite for institutional capital to enter. Dusk’s approach opens a window, providing a legal space for mainstream players. This is significant for promoting institutional investment into the crypto financial sector.