Privacy and compliance have always been the biggest challenges in the blockchain world—either privacy is well-handled, but compliance becomes an issue; or compliance is achieved, but privacy is sacrificed. Dusk Network has managed to solve this problem.

Its privacy technology is truly powerful. The core uses Zero-Knowledge Proofs (ZKP), especially the PLONK algorithm, which is impressive because it can verify transaction validity without revealing any data itself. Who participates in the transaction knows the details, while others can only see the encrypted results. This balance between transparency and privacy is achieved seamlessly.

Even more remarkable are confidential smart contracts. Dusk was one of the first to support native privacy smart contracts. What does this mean? Financial institutions can issue privacy securities and tokenized assets directly on the public chain without worrying about exposing business secrets. This is a real necessity for institutional-grade applications.

There are also innovations in consensus mechanisms. Dusk developed the Isolated Byzantine Agreement (SBA), which, compared to traditional Proof of Stake (PoS), incorporates cryptographic sharding and stealth time-locked transactions, enabling smarter selection of honest nodes and increasing network decentralization.

Additionally, the Citadel and Shelter protocols work together to integrate autonomous identity systems into the blockchain. Institutions can use Shelter for off-chain private KYC processes. Users can choose what information to disclose, maintaining full control over their data sovereignty.

Ultimately, Dusk is addressing a real-world issue: as on-chain finance becomes the trend, privacy and compliance must become standard features.