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The rise of Bitcoin and Ethereum has brought blockchain into the public eye, but it also exposes an awkward contradiction: either accept fully transparent transactions (like living in a glass house), or rely on privacy coins that emphasize absolute anonymity but are prone to regulatory scrutiny. This binary dilemma is a nightmare for institutional finance—who wants to expose business secrets and user data to the sunlight?
Is there a third way? One that can both safeguard privacy and pass compliance checks? Dusk Network is working on this very issue.
Simply put, Dusk Network is a decentralized blockchain protocol focused on privacy and compliance. It doesn't stop at basic encryption; instead, it rebuilds the entire system from the ground up, ensuring privacy protection permeates every aspect of financial interactions. Imagine installing smart blinds on a transparent glass house—regulators can verify the structural safety of the house but cannot see the private activities inside.
**How does the key technology work?**
What supports the balance between privacy and transparency? Dusk Network employs several hardcore mechanisms:
· Zero-Knowledge Proofs (ZK-SNARKs) form the foundation of this system. In simple terms, they can prove to verifiers that "this transaction is genuine and valid" without revealing sensitive information like transaction amounts or sender and receiver details. Think about it—it's clever—I can prove I have funds, but you'll never know exactly how much I have or who I paid.