Are you also noticing this vicious cycle: current blockchain applications either lay everything bare—user data, transaction details—leaving nothing hidden; or they go in the opposite direction, pushing anonymity to the extreme, only to be teetering on the edge of regulation. Neither approach is ideal, and the market gaps in between are growing larger.



The real challenge is this—**how to comply with strict financial regulations (KYC/AML) while truly protecting user and institutional transaction privacy and business secrets?**

This is exactly the problem the Dusk Foundation is desperately trying to solve around the $DUSK ecosystem. Note that they are not just another anonymous coin project, but a **privacy infrastructure specifically designed for the compliant digital asset era**. It’s a bit different.

Many people think privacy and compliance are inherently opposed, but Dusk breaks this misconception with its practical tech stack. Here’s how they do it:

Zero-knowledge proofs are used to the fullest extent here. You can prove to the network that you fully meet all regulatory standards—such as being a qualified investor or having passed KYC—without revealing your specific identity, asset holdings, or transaction counterparties to anyone. In other words, only the conclusion "I am compliant" is visible to regulators, while all other details are encrypted and locked down.

Additionally, their consensus mechanism and smart contract framework (Rusk VM) are designed from the ground up for financial scenarios. Instead of building a general-purpose public chain first and then forcing financial features in, they consider the real needs of securities tokens, confidential asset trading, dark pools, and auctions from the foundational level. This design philosophy is fundamentally different.
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GateUser-e19e9c10vip
· 13h ago
Oh wow, zero-knowledge proof gameplay is indeed interesting, but how many projects actually use it on the chain?
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BankruptcyArtistvip
· 13h ago
This is the right path. Finally, someone has clarified the relationship between compliance and privacy, the two adversaries. Privacy and compliance are really not mutually exclusive. Dusk's approach is indeed innovative. Using zero-knowledge proofs for KYC is brilliant, satisfying regulatory requirements without exposing everything. Rusk VM considers financial needs from the ground up, which is much smarter than adding features later. The entire Web3 ecosystem lacks this kind of intermediary solution; both extremes have been overplayed. But can this tech stack really be implemented, or is it just another beautiful vision? The topic of compliance and privacy is too tempting; I feel many projects will follow suit. In essence, they want both, but how many can truly achieve it?
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FantasyGuardianvip
· 13h ago
Hey, this idea is indeed interesting, but can zero-knowledge proofs really fully satisfy regulatory requirements? I have a feeling it might be a bit idealistic.
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UnluckyValidatorvip
· 13h ago
Oh wow, this is the kind of plan I want to see, not just another "we are ultra-anonymous" air project. The ZKP approach is indeed excellent, balancing both regulatory compliance and user privacy. I need to dig deeper into the Rusk VM part—how is the underlying financial logic designed?
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