It is truly remarkable the ways that we can access financial services these days. From the comfort of our homes and just using our mobile devices, we can create bank accounts, send and receive money, and even take loans. When we look back at the old and restrictive way that we access financial services just a few decades ago, the progress that has been made is obvious.
However, all this progress has come at some cost to consumers and one of these is privacy and compliance. When we sign up for many of these financial services, we have to provide a lot of sensitive information. This can be anything from our address to our credit history. If we are applying for things like loans or insurance, the information required can become even more sensitive like our medical history.
So while the modern world has many more options in terms of financial services, it asks us to give up even more privacy. But what can be done about this? Can financial institutions continue to serve the public without compromising their privacy? It turns out they can.
How Dusk Network Comes In
For financial institutions to preserve the privacy of their users, two things need to be in place. First, they need the technical infrastructure to do so and they also need to remain compliant with regulators while they do so.
Luckily, Dusk Network is meeting both needs through its own platform, specifically its new DayBreak testnet that was launched on March 22, 2022. Dusk Network offers zero-knowledge proof as well as the facilitation of privacy-preserving smart contracts for financial institutions.
How the zero-knowledge proof system works is that once it is deployed, consumer information can be confirmed without needing to be revealed. If the creditworthiness of a consumer needs to be confirmed, the system will confirm this without needing to reveal explicit details about the person’s credit history.
With the use of smart contracts, these processes are deployed instantly and seamlessly. For the consumer, this means high levels of privacy and for the institution, this means having access to the data confirmation they need while remaining compliant and protecting their users’ privacy.
A Privacy-Centric World
This new development from Dusk Network is more than just a new testnet launch. It is pushing the boundaries of what we can do with blockchain and how we can access privacy.
As Emanuele Francioni, the Founder and Technical Director at Dusk Network, says, “With the delivery of DayBreak, we are entering an exciting new chapter which signals our confidence in the network’s capabilities, as well as our readiness to progress to the next steps featured in our roadmap, toward our vision of a truly fair and efficient financial market.”