Privacy and compliance, is it really a choice between the two?

Recently, I had coffee with several technical leaders from banks, and we all coincidentally complained about the same issue: to use blockchain or not to use blockchain?

If we use it, all transaction information is transparent—customers' transfer records and asset allocations are all laid out on the table. A friend from a major European bank openly admitted that they once wanted to try using blockchain for cross-border payment settlements. Before they even officially started, the legal department slammed the table—if this were discovered by financial regulators, the fines could buy several office buildings.

If we don't use it, we see competitors upgrading digitally and feel somewhat unwilling. Plus, more and more customers are asking, "Do you offer blockchain services?"

In essence, it's a dilemma. But today I want to talk about a project called Dusk, which seems to have found a third way.

What exactly is Dusk doing? Let me explain it to you in the simplest terms.

First, forget those stiff technical jargon. You can think of Dusk as a "customizable compliance solution."

Imagine the scene of renovating a house. Ordinary blockchain is like a fully furnished home—every space is planned out, the decoration effects are fixed and uniform. You either accept it as is or don't buy it at all. Dusk, on the other hand, offers you a shell house plus a whole warehouse of building materials.

What’s inside this warehouse?

Privacy protection tools—similar to the principle of a one-way mirror, where the inside can see out, but outsiders can't see in. Your transaction information is properly protected; competitors can't see it, and hackers can't breach it.

Compliance checking tools—channels reserved specifically for regulatory authorities. These channels are not hidden vulnerabilities, but transparent and controllable interfaces. When regulators need to verify a transaction, they can do so through this channel without exposing all user information.