The design of Dusk surpasses the well-known block chain trilemma, innovating a fourth dimension: regulatory compliance. This is not considered in addition to the other aspects, but rather the main design principle. This is implemented through a complex cryptographic mechanism to separate the need for transactional privacy for the participant from the requirement for auditability for authorized entities. The regulator cannot simply seek to monitor the network without first proving a legal warrant to access certain, private information, which is also necessarily transparent on the block chain.
This also creates a new paradigm of "programmable compliance." Financial instruments can be issued as "smart securities" with programmed rules for KYC, for accredited investors, and for trading restrictions by jurisdiction, all while maintaining the privacy of the holder of the instrument and the amount of the holdings. It also allows for previously impossible financial constructs to exist, such as a dark pool where the settlement is public and final, but the order book and counter-parties are completely private.
Ultimately, however, Dusk is designed and architected to be a controlled public utility—to be a neutral global settlement system that doesn't try to evade regulation but cleverly incorporates it into its underlying protocol stack.
This is the underlying infrastructure necessary to move trillions of dollars of real-world assets on-chain in an efficient manner, combining the effectiveness of DeFi with the rigors of traditional finance. Not only will finance in the future be decentralized—it will be discreet, compliant, and operate on verifiable trust models.#dusk $DUSK @Cellula Re-poster
