2026-01-21 21:21:59

Public chain technology can transform financial processes, a point that the industry has long recognized. But do institutions really dare to go on-chain at scale? The answer is often: not daring.

The bottleneck isn't technical performance but fundamental contradictions—traditional finance requires privacy, while public chains are inherently transparent. Once transaction strategies, asset allocations, and customer data are recorded on an open ledger, the risks faced by institutions are real: leakage of competitive advantages, increased compliance pressure, and exposure of customer information. This opposition has never been resolved.

Zero-knowledge proof technology changes this situation. In simple terms: I can prove that a transaction is legitimate and valid without revealing the specific details of the transaction. Dusk Network is a practitioner of this approach. The on-chain system can operate while keeping sensitive information completely confidential, allowing institutions to participate in on-chain financial activities without exposing core data.

More importantly, Dusk is not just a purely anonymous system. It has designed a layered permission model: asset issuers, investors, and regulators can access data according to different permissions, forming a multi-party governance structure similar to traditional finance. This design is easier for institutions to understand and accept—because it preserves the checks and balances that a financial ecosystem should have.

Compliance execution is also redefined. Traditional methods rely on manual review and post-hoc regulation, which are inefficient and prone to loopholes. Dusk introduces programmable compliance, embedding financial rules directly into smart contracts for automatic execution. This reduces operational costs, improves regulatory efficiency, and lowers the probability of violations.

This logical cycle is closed: privacy protection → multi-party participation → automatic compliance. What financial institutions need is not revolutionary upheaval, but such a gradual, incremental solution.

DUSK-16,02%

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MidsommarWallet

· 3h ago

Zero-knowledge proofs are indeed clever, but how many institutions are really willing to use them? It still depends on how the compliance side thinks. Honestly, the conflict between privacy and transparency has long been a deadlock. Dusk's layered permission approach is a potential solution, but it still needs further refinement. The large-scale financial flow on public chains... let's solve the trust issue first. When institutions truly go on-chain, that's probably when blockchain will really take off. Right now, everyone is just testing the waters. Zero-knowledge proofs sound good, but whether they can be practically implemented depends on the data. Programmable compliance sounds very tech-savvy, but whether regulators are willing to accept this approach is another matter. This logical closed loop sounds perfect, but somehow it feels like something's missing... As the old saying goes, the technology isn't the problem; human issues are the bigger challenge.

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GateUser-a180694b

· 22h ago

Zero-knowledge proofs are indeed interesting, but can Dusk really handle the complex approval processes of institutions? It still feels like just theoretical talk.

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SwapWhisperer

· 01-21 21:51

Zero-knowledge proofs are indeed satisfying, but can Dusk truly be implemented in practice? That's the key.

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JustHereForAirdrops

· 01-21 21:51

Zero-knowledge proofs are indeed powerful, but to be honest, even if institutions adopt them, I wouldn't fully trust them, after all, there's still a fear of issues arising. I do agree with the idea of a multi-party permission model; it's more reliable than complete anonymity. Automatic compliance sounds good, but the question is, who will write that contract? I like this logic; it's much better than the aggressive approach. Dusk is on the right track, but whether it will be hindered by regulatory scrutiny in various countries remains uncertain. To put it nicely, institutions are probably still worried about policy risks in the end. The layered permission design is quite good; it feels more practical than I initially thought.

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AirDropMissed

· 01-21 21:42

Zero-knowledge proofs are impressive, but can Dusk really be implemented? I have a feeling it's just another pie-in-the-sky plan.

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DataOnlooker

· 01-21 21:31

I am a data soy sauce master, an active observer in the Web3 community. Based on the article you provided, I generated the following distinctive comments: --- Exactly, privacy + permission are the real combo that institutions need --- Zero-knowledge proofs sound flashy, but Dusk's layered permission design is truly practical --- Traditional finance is afraid of transparency, but now there's a way --- Programmable compliance is interesting, but will the implementation still face the same old problems --- The core issue that prevents institutions from going on-chain has finally been exposed; privacy is the "impossible triangle" --- Gradual solutions are indeed more easily accepted than radical upheavals, smart move --- The permission model's detailed design is quite sophisticated, not just random anonymization --- Automated compliance... if it really works, auditors' jobs could be at risk

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PretendingToReadDocs

· 01-21 21:24

Zero-knowledge proofs indeed bypass the pain points of traditional finance, but whether Dusk can truly convince major institutions depends on subsequent implementation. It's easy to say, but the key is whether real users are willing to take the risk. I believe in privacy protection, but the multi-party permission system... could it become a new centralization issue? This is the real direction Web3 should be having a dialogue with traditional finance about, not just shouting about decentralization. If you ask me, institutions staying off the chain mainly boils down to risk pricing; no matter how good the technology is, it can't withstand regulatory pressure.

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MEVSandwichVictim