The financial system is undergoing a silent transformation. More and more people are sensing this change—the barriers between traditional finance methods and digital assets are loosening, and the lines are becoming blurred. It is precisely because of this that a seemingly contradictory demand has emerged: financial transactions must protect privacy while also being subject to oversight. Can both be achieved simultaneously?

DUSK has focused on this issue. Since 2018, it has not followed the trend of pursuing fast transaction speeds but instead has delved into the core dilemma of digital finance—the balance between privacy and transparency.

The Dilemma of Traditional Institutions

Large banks and fund companies are now in a difficult position. On one hand, the advantages of blockchain are undeniable. Settlement cycles have been shortened from days to minutes or even seconds; intermediary costs for cross-border remittances can be cut in half; asset liquidity is no longer constrained by geography or business hours, and efficiency has genuinely improved.

However, when they look at how existing public blockchains operate, their enthusiasm cools. Everything on these chains is transparent—the details of each transaction, account balances, and contract specifics are all exposed to everyone. For transaction companies, this means their competitive strategies can be seen by rivals; for investment banks involved in mergers and acquisitions, their negotiation leverage is compromised; for offices managing family assets, the scale of assets and investment trends are visible to all.

This level of complete transparency is like a cold shower, dousing the enthusiasm of institutions eager to participate. Meanwhile, regulators are also struggling. They need to track the flow of funds to combat money laundering and fraud, but fully anonymous transactions make effective intervention impossible.