The transparency of blockchain transactions has always been a double-edged sword. Every transaction on the chain is immediately public—who is transacting, the amount involved, address associations—becoming information that anyone can access in an instant. This seemingly embodies the ideal of decentralization, but it also exposes the awkward reality: large holders' positions are trackable in real-time, easily triggering sniping; personal assets are fully exposed, leaving no privacy; and traditional financial systems, which have long established confidentiality and compliance mechanisms, are almost impossible to implement on-chain. We are trapped in a dead end between "transparency" and "privacy," caught between "freedom" and "compliance."

Dusk Network's technical solution changes this situation. Instead of simply making a binary choice, it achieves the possibility of "selective disclosure" through privacy smart contracts and zero-knowledge proofs. The core logic is straightforward: you can prove that a transaction is legal and compliant without revealing all transaction details and address associations. Want to prove to regulators that your source of funds is legitimate? No need to expose the entire transaction chain. Participating in compliant token issuance? Transaction prices and amounts can remain confidential throughout the process.

What does this mean? For transaction participants, large operations no longer need to constantly worry about being tracked. They can maintain a certain level of privacy when building or adjusting positions. At the same time, institutional-level compliance requirements can also be met—protecting personal privacy while providing regulators with the necessary transparency. This is not a denial of the transparency spirit of blockchain but a way to find the balance between transparency and privacy.