ZKVeil: A Privacy-Preserving Compliance Verification Scheme for Blockchain-Enabled Supply Chain Transactions

Blockchain technology improves supply chain management by ensuring the immutability of transaction records and facilitating process tracking. However, the transparency of blockchain raises significant privacy concerns, as sensitive information such as buyer and supplier qualifications, product specifications, and transaction amounts is often exposed. Compliance verification, which needs access to specific sensitive data for compliance checks, becomes challenging in blockchain-based privacy-preserving supply chains. This paper introduces ZKVeil, an innovative scheme utilizing zero-knowledge proof technology to maintain the confidentiality of sensitive information while ensuring compliance verification. Additionally, ZKVeil uses decentralized identifiers and verifiable credentials to ensure the authenticity of transaction data. A theoretical security analysis demonstrates the effectiveness of ZKVeil in safeguarding real sensitive data and ensuring compliance with regulations. To evaluate the performance of our scheme, we implement ZKVeil on a private blockchain of 100 nodes. Taking the shipbuilding supply chain transaction as an example, the experimental results demonstrate that ZKVeil incurs low gas consumption, execution time, and memory overhead.