#DUSK $DUSK @Dusk The Dusk Foundation supports privacy at the base layer to create a secure, compliant, and efficient infrastructure specifically designed for institutional-grade, real-world finance (RWA). By embedding privacy directly into the core protocol, Dusk enables on-chain compliance, allowing financial institutions to manage sensitive data while adhering to legal requirements like KYC/AML.
Here is why Dusk Foundation supports privacy at the base layer:
Enabling Institutional Adoption: Traditional finance relies on discretion; therefore, full, public transparency is unacceptable for institutional needs, such as hiding trading strategies or protecting client data.
Privacy by Design (Not Retrofitted): Instead of treating privacy as an optional add-on, Dusk embeds zero-knowledge proofs (ZKP) directly into the protocol. This allows for private, confidential transactions while maintaining the necessary auditability for regulators.
Selective Disclosure: The platform uses "selective disclosure" (via technology like Citadel), allowing authorized parties to view specific data for compliance, while the public cannot see the transaction details.
Preventing Front-Running and Information Asymmetry: By keeping trade details confidential at the base layer, Dusk protects against market manipulation, such as front-running, that can occur on fully transparent blockchains.
Hybrid Transaction Model (Zedger): The base layer uses a "Zedger" model, which combines the benefits of both UTXO (Unspent Transaction Output) and account-based systems, enabling confidential securities (XSC tokens).
Regulatory Compliance (RegDeFi): Dusk allows compliance logic—like transfer restrictions and white-listing—to be embedded directly into tokens, ensuring that assets comply with regulations like MiCA.
In essence, Dusk supports base-layer privacy to build a, "Regulated Finance" (RegDeFi) ecosystem where confidentiality and regulatory, legal, and compliance standards can exist simultaneously.
