Why is selective disclosure so important in on-chain finance, and how does Dusk support it natively?
As on-chain finance moves more towards the real economy, a fundamental conflict becomes clear: transparency is necessary, but excessive transparency is dangerous. In traditional blockchains, everything is public, so balances, transaction histories, and even business relationships are open to the public. But that’s not how real-world finance works. Banks, funds, or issuers simply need to prove that they are following the rules—it’s not necessary to disclose everything. This is where selective disclosure becomes essential for on-chain finance.
Selective disclosure means proving that a transaction or asset is following certain rules, but keeping unnecessary sensitive information hidden. Dusk built this concept not at the application layer, but at the native layer of the blockchain. Dusk’s privacy-focused architecture allows a transaction to cryptographically prove that it meets KYC, AML, or other regulations without revealing balances, identities, or internal parameters. This creates a unique position where the trustless transparency of blockchain and the privacy of real finance can coexist. This is why Dusk is not just another L1—but a viable foundation for regulated, institutional grade onchain finance.