Balancing privacy and compliance has always been a challenge in blockchain finance. How can we protect trade secrets while meeting regulatory requirements? This seemingly contradictory issue is precisely the challenge faced by many financial institutions.

Zero-knowledge proofs offer a solution — I can prove that something is true without revealing the specific details. Since 2018, Dusk Network has focused on this core concept, providing solutions for financial scenarios that require both regulatory compliance and data privacy.

However, privacy alone is not enough. Dusk's Hedger module takes it a step further — it combines zero-knowledge proofs and homomorphic encryption technology, allowing transactions to remain confidential while each step can be clearly verified for compliance. Parties can act discreetly as if operating in the shadows, but regulators can see whether each step complies. This design maintains transaction flexibility without sacrificing regulatory effectiveness.

Hedger Alpha has already demonstrated the feasibility of this approach. In the digital asset era, such privacy-preserving and transparent technical solutions are gradually becoming standard options in financial infrastructure.