Dusk Network is a unique layer-one blockchain that addresses a straightforward problem: how to enable financial institutions to conduct secure on-chain transactions while protecting privacy and meeting regulatory requirements.

It may sound like an impossible task, but this is precisely the core challenge at the intersection of traditional finance and blockchain. As more institutions seek to enter on-chain finance, they face a dilemma—either expose sensitive data for transparency or sacrifice compliance to protect privacy. Dusk aims to break this deadlock.

**How the underlying technology works**

Dusk employs two major cryptographic technologies: Zero-Knowledge Proofs (ZK Proofs) and Homomorphic Encryption. In simple terms, it allows you to prove "I indeed have this amount of money" without revealing the specific amount to anyone.

What makes this mechanism particularly clever is its selective disclosure feature. When regulators need to verify a transaction, they can see only the necessary information, while other sensitive data remains encrypted and protected. Transaction amounts, identities, asset portfolios—these can all be verified on the network while maintaining privacy, satisfying both parties.

**The elegance of its architecture**

Dusk adopts a modular architecture: DuskDS handles settlement and data layers, while DuskEVM is dedicated to execution layers. This separation not only enhances the network's throughput but also leaves ample room for various institutional applications to scale.

Overall, Dusk is attempting a complex feat—finding a true balance between privacy and compliance. For institutions interested in on-chain finance, this indeed presents an intriguing option.