Design of a Blockchain-Based Traceability System with a Privacy-Preserving Scheme of Zero-Knowledge Proof

Abstract

With the fast development of the industrial Internet, its interconnectivity poses new challenges for the cooperation of industrial entities. Cooperation among these entities is built on trust, and trust is based on high-quality industrial products at reasonable prices. A traceability system can play an essential role in objectively reflecting the production process and promoting this trust. However, traditional traceability systems often have data privacy issues. Because traceability data are collected or generated during the production process (namely, production-related data), they could be considered privacy data. Several researchers have introduced privacy protection schemes into the traceability system, such as authentication or encryption. Nevertheless, when a privacy protection scheme is established, the original data are disclosed to the legal user of the system, but the data may still be leaked intentionally or unintentionally. Except for data privacy issues, a traditional traceability system can be vulnerable to network attacks, data unavailability, and reliability issues. The authors conducted a study to overcome these shortcomings, and this paper reports the results. We built a traceability prototype system using a blockchain protocol and a zero-knowledge proof method. First, we built a blockchain to record key production process data, aiming to maintain data reliability and availability. Second, through an analysis of traceability purpose using production knowledge, the traceability purpose could be divided into multiple provable statements. By introducing privacy protection through a zero-knowledge proof, the traceability process was converted to proving relative statements. Finally, the statements were validated by a smart contract that provided openness and reliability during the traceability process. Analysis has shown that our approach could meet the requirements for high security and privacy. In addition, the paper also discusses the calculation cost of the traceability process to show our work’s viability. The traceability system described in this paper creates new possibilities for constructing a healthy and reliable trust relationship between production entities to provide further support in the development of the industrial Internet.

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Honesty Verification Approach to Address Dishonest Bidding Behavior in Blockchain-Based P2P Electricity Trading

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