Recently observed the evolution of various privacy solutions, and I have an increasingly strong feeling: simply encrypting data is not enough; the key is to turn "controllable confidential computing" into an infrastructure that business can directly call. Dusk's confidential zone design is quite interesting — it doesn't follow the traditional privacy chain's path of "complete anonymity," but instead finds an engineering solution that can meet both privacy and compliance requirements.

First, let's talk about the working logic of the confidential zone. Essentially, it's a trusted computing environment on the chain: sensitive information enters, processed by verified contracts in an isolated space, and finally a cryptographic proof that "I have computed according to the rules" is submitted on-chain. External observers see only "this result has been verified," without access to input data or intermediate processes. More importantly, when regulatory authorities or audit agencies have legitimate requests, the system can open specific information segments according to permissions and rules, avoiding privacy leaks while providing complete evidence.

How can this approach be specifically used? Several scenarios highly attractive to the financial industry:

When private equity funds go on-chain, share allocation, secondary transactions, and net value calculations all run within the confidential zone. Investors cannot see holdings and transaction prices from each other, but auditors can obtain verification data, and regulators can perform compliance checks when needed, fully avoiding the issue of customer privacy being exposed through public ledgers.

In scenarios where multiple companies jointly bid, each party's quotes and方案 details are protected within the confidential zone to prevent information leaks to competitors, but the overall bidding方案 and compliance proofs of the consortium can be submitted normally.