Traditional finance entering the on-chain world has always faced a deadlock—investment institutions need to protect trade secrets and client information, while regulators must track the flow of funds. The result? Most public blockchains are either completely transparent or fully anonymous, both extremes blocking institutional capital from entering.

This is the dilemma Dusk Network aims to break. It’s not just another general-purpose smart contract chain; it’s a Layer 1 that has been in development since 2018, specifically tailored for regulated financial markets. Simply put, it seeks to turn the wall between traditional finance and DeFi into a truly navigable bridge.

How does it achieve this? The core idea is not complicated: using cryptographic tools like zero-knowledge proofs to ensure that transaction privacy and regulatory auditability coexist at the blockchain’s core. To the public, transaction details are fully hidden, protecting commercial privacy. But authorized auditors or regulators can verify transactions through a specific mechanism called selective disclosure.

What’s the outcome? Financial institutions can enjoy the efficiency and transparency of blockchain without revealing all their cards. This design approach is highly significant for RWA tokenization and compliant DeFi. It opens not only a technological path but also expands the imagination for bringing traditional finance onto the chain.