2026-01-21 21:20:34

When it comes to blockchain and privacy, what comes to mind? Most people envision two opposing extremes: either all transactions are completely transparent, or everything is hidden in darkness. But the real financial world is never so black and white.

DUSK's approach is a bit different. It’s not just another privacy coin project aiming for complete anonymity, but rather an effort to build a financial infrastructure that meets both compliance requirements and privacy protection. Sounds contradictory? But a closer look at its technical design makes it clear.

Its core weapon is "Confidential Smart Contracts." Simply put, it allows enterprises to issue compliant financial products—such as bonds, securities, fund shares—and encrypt the transaction details, specific holdings, and amounts within the contracts. The general public cannot see these details, but regulatory agencies or authorized auditors hold the keys and can verify transaction compliance when needed.

To use an analogy, it’s like installing adjustable smart foggy glass on a glass house. People outside can see the house and know it exists, ensuring credibility and basic transparency. But what happens inside? That remains private. This "programmable privacy" design actually paves the way for bringing traditional financial assets onto the blockchain. Many institutions previously hesitated to put real financial instruments on the blockchain due to privacy leaks or compliance concerns. Now, with this hybrid solution, the risks are greatly reduced.

DUSK-14,35%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

18 Likes

Reward
18
6
Repost
Share

Comment

0/400

MetaverseLandlord

· 11h ago

Well, finally someone has clarified this issue, it's not a matter of black and white. This idea of programmable privacy is truly brilliant, it can reassure institutions and regulators won't get upset. This kind of solution should have been available long ago; traditional finance has been exploring for so long. Why didn't our privacy coin project think of this trick? Instead, it has to turn into an underground black market. I like the metaphor of glass atomization; it has that vibe. But the key is in execution. It's easy to say nice things, but will it be hindered by various restrictions when implemented? It seems DUSK has finally hit the right idea this time, definitely better than those just shouting slogans.

View OriginalReply0

0xSleepDeprived

· 11h ago

Oh wow, finally someone has thought of a middle ground—it's not a matter of choosing one or the other. The analogy of frosted glass is brilliant; it's much smarter than projects that are either completely transparent or completely black. Can confidentiality agreements really make traditional finance willing to go on-chain? It still feels like a trust issue. The idea that regulators hold the key sounds good in theory, but in practice, it's a whole different story. Finally, it's not just another privacy coin; this approach definitely has some potential.

View OriginalReply0

OnchainGossiper

· 11h ago

Damn, this is what it really means to understand finance, not that all-or-nothing approach. The idea of DUSK is indeed a bit extreme. Can compliance and privacy truly coexist? The fogged glass analogy is perfect. Can regulators verify while we maintain privacy? Win-win? Wait, can this thing really prevent on-chain analysis? I'm a bit nervous. The key to bringing traditional finance on-chain is right here. Someone should have thought of this solution long ago. This is the future, right? Don't talk about complete anonymity; compliance is the way to go. Feels like all previous privacy coin projects were just a waste of effort. I'm a bit hopeful that DUSK can really attract institutional-level participation.

View OriginalReply0

CryptoFortuneTeller

· 11h ago

Oh wow, this is the real solution, not that all-or-nothing approach. --- Balancing compliance and privacy? Feels like the key for institutional entry. --- Got it, it's about giving big players private space while still letting regulators see, smart. --- If this thing really gets widespread, traditional finance going on-chain wouldn't be a dream anymore. --- Those extreme anonymous coins previously blocked the way, but now the thinking is much clearer. --- Programmable privacy sounds impressive, but it's really just about access control, right? --- Really, finally some projects understand this—not all privacy needs to be against regulation. --- I like this logic: giving institutions peace of mind while ensuring privacy—a win-win situation. --- Putting corporate bonds on the chain? If that happens, the entire landscape will change.

View OriginalReply0

StopLossMaster

· 11h ago

This idea is indeed clear-minded; finally, someone is not thinking in binary terms of either/or. --- Compliance + Privacy? If this can really be achieved, the deadlock of traditional finance going on-chain will be broken. --- Alright, I just want to see if regulatory agencies will really use this key. --- The analogy of smart foggy glass is quite fitting, but the key is whether those holding the key will abuse their power. --- This logic sounds comfortable, but in practice, will it just be another PPT project? --- Finally, it's not another money laundering scheme disguised as privacy; this direction is worth paying attention to. --- Programmable privacy sounds advanced; simply put, is it giving institutions a "selective transparency" privilege? --- Would traditional financial institutions dare to use it, or are they too cautious and prefer to keep observing? --- Isn't this just trying to find a balance point between privacy and regulation? The reasoning is correct, but the hard part is implementation. --- Wait, aren't the auditing parties holding the keys themselves becoming new centralized risks?

View OriginalReply0

just_vibin_onchain

· 11h ago

Oh, I like this idea. Finally, someone understands that compliance and privacy are not mutually exclusive. --- If the confidentiality agreement can really be implemented, traditional financial institutions might truly be tempted. --- Wait, the regulatory authorities hold the key to verification... Is this still privacy? It feels like we've been exposed. --- The analogy of frosted glass is quite fitting, but I still doubt whether actual implementation won't turn into another form of censorship. --- This is the kind of question Web3 should be asking, not just blindly promoting the old and outdated idea of anonymous coins. --- If we really want to solve the pain points of institutional on-chain adoption, the DUSK approach indeed hits the core. --- Programmable privacy sounds advanced, but the difficulty of implementation must be significant. --- Honestly, if we can truly balance regulation and privacy, that would be a breakthrough-level innovation.

View OriginalReply0