Dusk is approaching privacy in a different way as compared to the traditional privacy coins. It defaults on activity, but permits selective disclosure. Transactions remain confidential, unless the evidence of their correctness is required, and they can be audited by regulators. Such balance is important; regulators desire demonstration and not obscurity.
Why controlled finance should have an alternative blockchain architecture.
Layer 1 blockchains are designed to participate and do experiments freely. Unregulated finance is the reverse. It needs restricted access, accountable visibility, official information in the market, and certain settlement. It is impossible to make additions to these properties later and still not shatter the system.
Dusk has been constructed to be in this environment. Its structure isolates execution, settlement and compliance logic into first-class elements. This allows privacy-sensitive smart contracts to co-exist with audit systems that regulators and institutions can rely on.
That is why the roadmap proposed by Dusk suits the European system of MiCA, European DLT Pilot Regime rather than trends of retail DeFi. It constructs the future of tokenized securities, funds, and debt, which will not exist beyond the law but rather exist within it.