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Many people frown when they see projects like Dusk: "Privacy protection and compliance regulation? Isn't that just shooting yourself in the foot?" This skepticism sounds reasonable but is only half right.
Having been in the crypto community for too long, it's easy to be trapped in a mindset—either believing that only a complete revolution counts as "revolution," or that total compromise is the only way. But the reality of the financial system is always gray; it's never black and white.
What Dusk aims to solve is actually a problem that the entire industry has been avoiding: how to keep a secret door for transactions in the sunlight. This door isn't meant for illicit activities; precisely, it's designed for the mainstream players who care most about "procedural justice." Imagine how traditional institutions handle compliance today—massive databases cobbled together, internal permissions tangled, chaos during audits. Not only is this inefficient, but it also forces a binary choice between "full disclosure" and "complete concealment."
Dusk's zero-knowledge proof approach essentially opens up a third way. In simple terms: I prove to you that I am doing what I should, and as for what I shouldn't see? I don't even have the right to see it myself. It sounds rebellious, but it's not about confrontation—it's a workaround. Instead of shouting to dismantle the old banking system, it cleverly hands over a key. The rules like KYC and AML? No need to access your underlying data; I can still verify compliance. Cross-institution reconciliation issues? Generate a proof, and no one can deny it.
The entry point isn't "revolution," but "penetration"—sneaking into the gaps where traditional tech is overwhelmed yet afraid to use typical encryption schemes.
The real challenge lies here. The complex, convoluted ideas of institutional clients are far more complicated than code. How to convince them that this solution can both protect privacy and truly be compliant—without just sounding sophisticated—is the real hurdle Dusk needs to overcome.