How DUSK Coin Supports Confidential Transactions

Privacy is one of the key pillars of Dusk Network, and the DUSK coin is central to making confidential transactions possible on the platform. Unlike most blockchains where transaction details are fully public, Dusk focuses on privacy without sacrificing compliance, making it ideal for financial institutions and regulated assets.

At the technical level, Dusk Network uses zero-knowledge proofs (ZKPs), a type of cryptography that allows users to prove that a transaction is valid without revealing the underlying details. With DUSK, this means you can transfer assets or ownership while keeping amounts, sender, and recipient private. Validators on the network can confirm transactions without ever seeing sensitive information.

Another feature enabling confidentiality is selective disclosure. Not all transactions are treated equally—some data can remain hidden by default but revealed to authorized parties, such as regulators, if legally required. This ensures compliance with KYC/AML rules while maintaining the privacy of everyday users. DUSK powers these operations, as the token is used to pay transaction fees and incentivize validators to process these private transactions securely.

DUSK also supports privacy-preserving smart contracts, sometimes called “confidential smart contracts.” These contracts can execute complex logic and enforce rules without exposing sensitive information to the public blockchain. This opens up possibilities for regulated financial products like security tokens, bonds, or tokenized real-world assets.

Staking DUSK is another way the network ensures confidentiality. Validators who stake tokens help process and verify confidential transactions, creating a system where the integrity of the network is tied to economic incentives. Honest behavior is rewarded, while malicious activity is penalized, keeping the network secure and private.#dusk $DUSK @Dusk