A major part of Dusk Network's ability to offer users anonymity, security, and compliance with regulations is derived from the platform’s use of zero knowledge proofs (ZKPs)
ZKPs let an individual or organization demonstrate the correctness of an assertion without needing to disclose confidential information about that assertion. This means that Dusk Network has the ability to provide a new way of conducting transactions on a public blockchain via the use of ZKPs.
The ZKP functionality of the Dusk Network protocol is built into the blockchain as opposed to being added after the initial launch or by using a third party service.
In this situation, users making transactions using Dusk's native token (DUSK) do not have to worry about their transactional data being publicly accessible to anyone, including the sender's address and the amounts sent.
Institutions that have compliance obligations often must maintain the confidentiality of certain market information, which makes the ZKP mechanisms used by the Dusk Network an appealing option for these organizations, as well as enabling regulatory authorities to verify the accuracy of transactions conducted on the Dusk Network without compromising the privacy of other users who are not authorized to receive that information regarding a specific transaction.
With the development of applications that utilize business logic on smart contracts via zero knowledge proofs, Developers can write applications in the Dusk Generalized Compute Layer using a zero knowledge based proof system.
Now, developers can utilize the functionality of verifiable execution over smart contract states in a completely private way. Dusk uses the Rusk Virtual Machine to provide the native support for zero knowledge verification.
In addition, Dusk provides a more secure environment for execution with the use of a zero knowledge proof scheme and other consensus protocols, such as a proof of blind bid similar to how Bitcoin does it.
Dusk's use of zero knowledge proofs takes a transparent blockchain and provides a level of accountability, in that it can be demonstrated that the transactions were valid mathematically, but also provides for the ability to maintain the privacy of users, ensure that all compliance requirements are met, and allow for a decentralized ecosystem.
