Dusk Protocol is a blockchain designed for the issuance, trading, and settlement of regulated financial instruments.
Its core innovation is the integration of selective disclosure into the base layer of its network. This allows financial activities that are legally required to be confidential - such as institutional bond trading, private equity transfers, or over-the-counter deals, to be executed on a blockchain without compromising commercial sensitivity or violating data protection laws.
The technology achieves this by using zero-knowledge cryptography to create auditable privacy. All transactions are recorded and validated on a public ledger, but their details are encrypted. Authorized entities, such as regulators, auditors, or specific counterparties, can be granted access to view the necessary data through cryptographic keys. This structure ensures compliance is programmable and automatic, not an afterthought.
The practical use case is to serve as the settlement layer for tokenized real-world assets (RWAs). This includes private equity, syndicated loans, real estate, and other securities that cannot be traded on transparent, public blockchains due to confidentiality agreements, insider trading regulations, or competitive exposure.
In essence, Dusk Protocol provides the technological framework to reconcile blockchain's transparency with traditional finance's legitimate need for discretion. It is not about anonymity, but about building legally compliant, institutional-grade financial markets on-chain.
