Quiet Finance: How DUSK Brings Privacy into Regulated DeFi
Blockchains currently make users choose between being private or compliant. DUSK wants to do that for both.
In short, DUSK is for financial assets that require both secrecy and comply with regulations. Its smart contracts are achieved via zero-knowledge proof, which ensures secrets are maintained while, at the same time, proving that the transaction is correct. This will enable such regulated entities to operate on blockchain technology.
And it does it on the order of 1,000 transactions per second, which is quite swift, much faster than an experiment. But more importantly, it achieves selective disclosure, which permits auditors and regulators to verify transactions without violating user privacy
This design has implications for the way regulated DeFi can function. Rather than a public-by-default financial system, the DUSK design encourages a concept known as controlled transparency, where privacy, trust, and compliance can coexist. It is at this point that the design becomes interesting.
