This proof-oriented model fundamentally changes how treasury functions can operate. A company can prove solvency without revealing its full balance sheet. A fund can demonstrate liquidity compliance without exposing portfolio composition. A stablecoin issuer can prove reserve backing without disclosing custodians, asset structures, or counterparty relationships. Trust is established through verification, not forced transparency.
Governance and approvals follow the same principle. DUSK supports privacy-aware multi-signature and delegated custody workflows, where approval logic, signer weights, and delegation rules are enforced on-chain, while signer identities remain confidential. This preserves strong internal controls while reducing operational risk and unnecessary exposure of sensitive
Accounting and reconciliation also become more practical. On-chain commitments can be cryptographically linked to encrypted or hashed versions of off-chain records, allowing independent verification without full disclosure. Selective disclosure mechanisms enable organizations to reveal only the specific data required, only to authorized parties, and only for defined time windows.
This approach significantly improves counterparty risk management. Positions can be netted across counterparties without revealing individual transactions. Proofs of exposure limits can be generated without disclosing contract structures. Insurance and reinsurance arrangements can rely on cryptographic attestations that claims and reserve conditions are met, enabling faster settlement while preserving confidentiality. Syndicated transactions benefit as well, allowing private covenants and collateral terms while maintaining verifiable compliance.
