I've been pondering the Citadel protocol of @Dusk , which addresses a problem I find quite bothersome but have to face: KYC (Know Your Customer). In the current Web3 ecosystem, compliance often means running naked—having to submit passport information to centralized entities and then praying their databases aren't hacked. This completely contradicts the essence of decentralization. The handling logic here at Dusk is quite interesting; they have turned KYC into a non-interactive zero-knowledge proof service.

​The core logic of Citadel lies in the separation of 'permissions' and 'identity information.' I don't need to show my ID to every DApp; I just need to present a mathematical proof that 'I have been verified.' This 'principle of minimal disclosure' is architecturally very elegant. It not only protects user privacy but also safeguards institutions—because institutions don't want to hold large amounts of sensitive user data, which means huge compliance costs and security liabilities.

​#Dusk embeds this identity layer directly onto Layer 1, rather than creating an external smart contract, which is quite a bold move. This means that future asset issuers can directly set trading thresholds at the protocol level (for example, 'only for certified qualified investors') without needing to establish a cumbersome whitelist system themselves. This native support for compliance in the underlying infrastructure is irresistibly attractive to traditional giants looking to issue bonds or securities.

​From a technical perspective, this is essentially redefining what an 'account' is. An account is no longer just an address; it is a container that includes compliance attributes. If the Dusk mainnet can successfully run this process, it will solve not just privacy issues but also break down the high wall built between the fiat world and the crypto world due to 'compliance fears.' This is precisely what infrastructure is meant to do.#dusk $DUSK