When it comes to privacy coins, many people's first reaction is absolute concealment and untraceability. But $DUSK operates on a different logic——it aims for both privacy protection and compliance with regulatory requirements. This may sound contradictory, but they achieve it with a cryptographic protocol called Hedger.

How does it work? Through transactions initiated by Hedger, ordinary users and network participants see completely encrypted data. Transaction details are hidden, protecting trade secrets and user privacy. But that's not the whole story——for authorized regulatory agencies and auditors, the situation is different. They hold specific keys that allow them to view the full transaction process like using a "periscope," ensuring anti-money laundering and other compliance requirements are met.

This is the brilliance of "selective disclosure." On one hand, ironclad privacy protection; on the other, full transparency when necessary——both are achieved. For institutional users, this solves a big problem: they can use privacy technology without worrying about crossing regulatory lines. This balanced design is precisely the key breakthrough for large-scale adoption of privacy solutions.