Privacy-Enhanced Blockchain Recurring Transactions Using Zero-Knowledge Proofs
Răzvan Marius Mihai, Omer Faruk Ozkul, Bogdan Mihai, Gora Datta, Nicolae Goga, Constantin Viorel Marian · 2024
Blockchain technology has significantly transformed the landscape of financial transactions, offering unparalleled transparency and trust. However, the need for privacy in recurring transactions remains a critical challenge. This paper proposes an innovative approach to enhancing privacy in blockchain-based recurring transactions through the integration of Zero-Knowledge Proofs (ZKPs). We present a detailed architecture that combines the efficiency of smart contracts on the Ethereum blockchain with the confidentiality offered by ZKPs. Our implementation ensures that transaction details remain private while maintaining the integrity and non-repudiation inherent to blockchain technology. We evaluate the proposed solution in terms of performance, scalability, and security, demonstrating its potential to revolutionize privacy-preserving recurring payments in decentralized finance (DeFi) applications. This work addresses the privacy paradox in blockchain and sets the stage for future advancements in secure, automated financial systems.