When we talk about companies using cryptocurrency there is a huge problem that nobody wants to discuss. We get excited when a large bank or investment company shows interest in blockchain technology.. We seldom ask the question, why cryptocurrency has not been widely used by these big companies, like the big banks or investment companies to move their huge amounts of money their billions of dollars into cryptocurrency yet. We need to think about why the big banks and investment companies the companies that use cryptocurrency are not using it to move their billions of dollars.
The reason is not the technology it is the privacy. This is where Dusk really shows how great Dusk is.
The "Glass House" Problem
Let us say we are an investment company called Whale Capital. We want to buy a lot of Apple stock. If we do this on a blockchain, like Ethereum everyone can see the address of our wallet. They can see how much Apple stock we are buying and when we are buying it. This means people can find out what Whale Capital is doing with Apple stock.
When you start to buy something the whole market notices it. People who like to run will get in on it they will drive the price up and you will pay a lot more for the thing than you wanted to pay for it. The market will see that you are buying. That is when the front-runners will jump in and drive the price of the thing up even more.
For an institution having a public ledger is like living in a house with glass walls. This house is very open. Do you really want the people who live near you to see everything you do? For example do you want them to watch you get dressed? The answer is no. This thing called " transparency" is actually a problem, for institutions that deal with serious finance not something that helps them. Institutions that handle finance do not need this kind of transparency. Serious finance requires a level of privacy and a completely public ledger does not provide that.
The Dusk Solution: Privacy Without Secrecy
People often get mixed up about this. When they hear the term "privacy coin" they think it is about doing something.. Dusk is changing that idea. Dusk is making privacy coins that follow the rules. Dusk is building what they call Compliance-Friendly Privacy. This means Dusk privacy coins are not about hiding things but about keeping peoples information safe and private in a way that's okay, with the law.
Dusk uses Zero-Knowledge Proofs or ZKPs for short to make a kind of privacy for people. This is like the windows you see on a fancy car, a limousine that helps keep what is inside private. Dusk and its Zero-Knowledge Proofs are really good, at doing this.
The Regulator, who is like a traffic cop can see that the car has been registered and that the driver actually has a license to drive the car. The Regulator is checking to make sure the car and the driver are okay to be, on the road. The car is. The driver has a license.
The Competitors, which are the people on the street have no idea who's inside or what kind of deal the Competitors are talking about with the other people, in the meeting.
This is really important for institutions. They have things like Citadel and Dusk that help users show they have done the Know Your Customer checks. This means they can prove they are allowed to trade without telling everyone who they're what trades they have made. Dusk is a deal because it uses these protocols to keep people safe. With Dusk and protocols, like it users can do what they need to do without sharing their identity or their entire history of trades.
The Missing Piece of the Puzzle
We have spent a lot of time creating blockchains that're really fast like Solana and Sui. We have also made blockchains that're very secure like Bitcoin and Ethereum.. Somehow we forgot to make blockchains that are private and still do what the law says, like private blockchains should.
Dusk is filling that space. This makes a place where companies and organizations can do their work without everyone seeing what they are doing. It is like turning a house with glass walls into a meeting room. Long as people are worried, about their privacy big investors will not get involved. Dusk is making it easy for these big investors to finally join in.
