An interesting question is before us—how to use blockchain to hide transaction details while reassuring regulatory authorities? It sounds contradictory, but this is precisely the core challenge that future financial infrastructure must solve.

Dusk, a privacy-centric public chain, is not about resisting regulation but about finding a coexistence solution. Most privacy projects follow a binary approach—either complete anonymity or full regulation. Dusk's approach is different—it aims for "permissioned disclosure" rather than "hiding everything." Users can selectively prove to designated parties (such as regulatory nodes) that their transactions are compliant, while keeping transaction details private throughout the process. It sounds like self-restraint, but in reality, it’s a passport into the mainstream financial world. Its true goal is not to become dark web currency but to provide privacy protection for regulated assets like securitized tokens and bonds.

On the technical level, Dusk has built two layers of defenses. The key one is the Citadel protocol—based on zero-knowledge proof technology, allowing users to generate compliance proofs while initiating private transactions. These proofs can be verified by third parties to confirm that the transaction is free of money laundering and other violations, without revealing the specific details of the transaction. This "verifiable yet confidential" solution breaks the common perception that privacy and regulation are mutually exclusive.