The core of Dusk is the concept of "Selective Disclosure."
Dusk relies on Zero-Knowledge Proofs (ZKPs), which allow for the validation of a transaction or smart contract without revealing sensitive data such as:
Transaction value
Party identities
Contract logic details
This means data remains hidden by default but can only be disclosed to authorized parties (such as regulators or legal auditors) when necessary. Here’s the fundamental difference between Dusk and traditional privacy networks:
It’s not privacy to evade censorship, but rather privacy that protects the user and respects the legal framework.
Dusk supports what are known as Confidential Smart Contracts, where:
Contract logic is executed on-chain
Results are verifiable
Internal data remains hidden
This is crucial for financial markets because most real-world contracts cannot be fully public.
Why is this privacy important?
In traditional finance:
Transactions are not public
Order books are not exposed
Customer data is legally protected
In Dusk:
doesn't try to change this reality, but rather to bring it to the blockchain in a logical and viable way.