Dusk integrates zero-knowledge proofs (ZKP) directly into the protocol layer, making confidential contracts the "basic configuration" on the chain rather than an additional plugin. This means that on-chain records can achieve two key effects: externally, all sensitive information such as amounts, counterparties, and contract terms are fully hidden, making it impossible for outsiders to uncover; internally, in compliance scenarios, it can present "verifiable proofs" according to rules, allowing self-certification without exposing complete data. In simple terms, privacy is not about locking information forever, but about "accessible on demand, viewable only by authorized parties." This is the true privacy model that institutions need.