2026-01-14 07:25:46

After talking about blockchain for so many years, most people still understand it as a transfer tool. Speed, low cost, removing middlemen—these advantages truly shine in daily payments and trading speculation. But when it comes to complex financial operations, this approach starts to fall short.

For example, large-scale transactions between institutions, supply chain financing, and credit assessments require not just speed but selective transparency. Trading strategies, position sizes, financing arrangements—these are essentially business secrets. If all of this is permanently published on the chain, institutions won't dare to participate, and it could even invite various risks.

Frankly, the issue isn't performance bottlenecks but privacy protection.

The serious financial world has never advocated extreme transparency. Dusk Network has recognized this. It doesn't treat privacy as a marketing buzzword but as a fundamental principle of financial system design. Using cryptographic techniques like zero-knowledge proofs and secure multi-party computation, it builds a computing platform capable of handling complex financial operations without forcing data details to be publicly disclosed.

Practical scenarios are already emerging.

Institutional-level trading is one example. Financial institutions can settle transactions while hiding trading strategies and position structures, all while ensuring compliance audits are fully satisfied. In this way, trading counterparties can't see the data, but regulators can see what they need to—each side gets what they require.

Supply chain finance can also be implemented. Participants don't need to exchange complete commercial data, only share "trustworthy results." This allows financing processes to run automatically, with full protection of business secrets. Efficiency improves, and risks actually decrease.

In the fields of digital identity and credit assessment, the benefits are even more direct. Users don't have to hand over raw data to auditors; they only need to prove they meet the criteria. Separating "proof" from "disclosure" protects privacy on one hand, while the system can still make decisions on the other. This is the true balance between privacy protection and business needs.

DUSK-1,72%

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.

10 Likes

Reward
10
8
Repost
Share

Comment

0/400

GasGuzzler

· 01-17 05:23

Haha, finally someone clarifies that TPS and Gas fees are not the core of finance at all. Exactly, privacy is the real issue; how could institutions reveal their cards? Zero-knowledge proofs should have been used long ago, but the ecosystem is too small and no one is playing with it.

View OriginalReply0

MidnightGenesis

· 01-16 20:28

From a coding perspective, zero-knowledge proofs are indeed different. On-chain data shows that major institutions have been secretly using similar solutions for a while, they just haven't publicly announced it.

View OriginalReply0

AllInAlice

· 01-14 07:55

Oh wow, someone finally explained this clearly Exactly right, the transparency enthusiasts just don't understand the underlying logic of finance Dusk's approach to zero-knowledge proofs is indeed creative, but will institutions really believe it? The supply chain part looks promising; that's the most practical.

View OriginalReply0

SilentAlpha

· 01-14 07:51

That's right, privacy is indeed a severely underestimated financial infrastructure. Whether these projects can truly be implemented depends on the data. Zero-knowledge proofs sound amazing, but who will bear the cost? Supply chain finance definitely has room for imagination, but will institutions really trust it? It still feels mostly conceptual; what about actual adoption rates? Privacy protection ≠ concealment or manipulation; finding the right balance is very difficult.

View OriginalReply0

OffchainWinner

· 01-14 07:51

Someone finally said it: the whole set of idealized transparency stuff really needs to be phased out. Getting privacy right is the real key; institutions need to feel confident to enter the market. Zero-knowledge proofs and similar technologies should have been adopted long ago. Why are so many projects still hyping them up blindly?

View OriginalReply0

UncommonNPC

· 01-14 07:48

Finally, someone has explained it thoroughly: privacy is the core of financial blockchain. How can institutions possibly reveal all their cards? That's not realistic. Zero-knowledge proofs should have been used long ago; they are much more practical than performance optimizations.

View OriginalReply0

CryptoDouble-O-Seven

· 01-14 07:44

Really, the vast majority of people are still using transfer mindset to play with the chain, it's outdated. This approach is fundamentally not suitable for institutional finance; exposing business secrets on the chain is equivalent to suicide. Privacy is not a marketing gimmick; it should be the underlying logic of the financial system. Zero-knowledge proofs and other cryptographic tools should have been properly utilized long ago. Dusk is a good direction. This is what the chain should truly be doing, not just speculating on coins.

View OriginalReply0

ColdWalletGuardian

· 01-14 07:41

Finally, someone has cut through the confusion: transparency is actually a pseudo-demand. Purely focusing on speed and low cost has long been overdone; the key is still being able to hold real money. ZK technology is indeed impressive; the idea of proof without disclosure should have been promoted long ago.

View OriginalReply0