When it comes to privacy coins, most people's first reaction is about compliance risks. But DUSK's design approach is quite interesting—it doesn't choose between one or the other but tries to achieve both.

Speaking of core competitiveness, DUSK relies on cryptographic tools like zero-knowledge proofs. Transaction privacy is enabled by default, which is no different from most privacy coins. But the key point is: it supports **selective disclosure**. In other words, users can proactively prove the legality of a specific transaction to regulators when needed, without exposing their entire account history.

What's even more clever is the dual transaction model. Users can switch freely between two modes—"Moonlight" mode offers fully transparent transaction records (similar to Ethereum's mechanism), while "Phoenix" mode is for confidential transactions. Use transparent mode for audits, switch to confidential mode for privacy. This kind of flexibility is indeed rare among privacy coins.

From a technical perspective, DUSK's approach finds an interesting balance between privacy and regulation.