The contradiction between privacy and compliance has always been a difficult problem that DeFi cannot avoid. Most solutions are simply balancing the scales between these two ends, often resulting in a situation where you can't have both fish and bear's paw at the same time. But some projects have thought of another way—rather than making trade-offs within the existing framework, why not completely change the game rules.

Dusk Network's approach is worth paying attention to. It introduces a set of cryptographic tools that allow authorized individuals to see only what they must see. It sounds abstract, but the underlying technical logic is actually straightforward. The core is a set called Rusk, a zero-knowledge virtual machine. Imagine it as a completely enclosed computing space. Smart contracts run inside it, with all inputs, logical processes, and data changes encrypted and locked. Outside observers can only see the final result that has been mathematically proven to be "correct."

What does this change? Previously, a compliant DeFi application had to expose sensitive information like user addresses and transaction amounts to auditors. Now, that's no longer necessary. Auditors only need to see a cryptographic proof that simply states "all operations comply with the rules," without revealing any details. It's similar to airport security checks—you don't have to open your luggage and show everything; just pass through an X-ray scanner, and the machine gives a "pass" or "intercept" decision—privacy is fully protected.

But isolated privacy alone isn't very useful. Finance requires liquidity and connectivity. Therefore, in cross-chain interoperability, Dusk has also made careful arrangements. It didn't try to reinvent the wheel from scratch but instead deeply cooperated with the cross-chain protocol of a well-known oracle, using this bridge to connect traditional assets with decentralized ecosystems. This way, privacy protection and real-world applications can truly be integrated.