Let's first ponder why institutions find it even harder to go on-chain than reaching the sky. There are two main hurdles that are unavoidable and inescapable. The first is the privacy hurdle: if an institution's transaction details and business secrets are fully disclosed on the chain, competitors can easily analyze them one by one. Not only would they not make money, but their entire assets could be exposed. This is a disaster for traditional financial institutions. The second is the compliance hurdle: the on-chain process must withstand regulatory inspections and audit traceability. If it doesn't comply, the assets could be frozen at best or outright expelled at worst. No one dares to take that risk.

Most public blockchains on the market take extreme approaches: either they implement "full transparency," where all transaction records are accessible and institutions shake their heads at the sight; or they focus solely on privacy, neglecting compliance, and when regulators come knocking, they fold. Dusk's value lies precisely here — it doesn't choose between one or the other but seeks to achieve both: using technology to hide sensitive information while deliberately leaving a "controlled audit channel." Regulators and auditors can verify according to rules, fully meeting mandatory requirements like KYC/AML, effectively giving institutions a "double insurance reassurance pill."