The increasing usage of blockchain technology beyond consumer-level applications becomes a reality, there is one issue that simply cannot be overlooked: how does the need to protect privacy intersect with and meet the need to properly regulate the system? This is a choice most blockchains are forced to settle between.
Dusk has been designed for those financial applications which are regulated, and they come with innovative privacy solutions. The novelty of the system lies in the concept of the dual transaction system. Moonlight transactions are the ones that happen in the transparent, account-based environment, just like the Ethereum network, so they are best for auditing, activities connected to identities, or institutional applications. Other transactions are Phoenix, which are based on the UTXO model with zero-knowledge proofs.
This solution is not theoretical in nature. It directly corresponds with the requirements of real-world assets (RWAs), compliant DeFi, and on-chain identity. Banks and financial institutions cannot reveal their customers' sensitive information on public blockchain systems, but at the same time, they cannot function in an entirely untransparent atmosphere either. Dusk offers something in between what traditional blockchain systems are unable to provide.
As more regulators embrace blockchain technology instead of fighting it, the next wave of growth will be driven by those who have designed their blockchain with regulatory consideration from the start. Dusk Network isn’t riding the trend, it’s getting ready for the next wave.
