Blockchain-Enabled Zero-Knowledge Proof for Confidential Electronic Auction Systems

Abstract

Blockchain technology, although relatively recent, has already been successfully integrated into our society. Decentralized systems (DS), and blockchain networks in particular, raise important questions about the security and privacy of data storage and transmission, attracting an increasing number of users. One promising application of blockchain is the organization of auctions, where participants can sell goods or services while maintaining complete privacy and integrity of the conduct. This paper proposes an auction model in DC using Zero- Knowledge Proofs (ZKP), including techniques such as zk- SNARK, zk-STARK and Bulletproofs. These approaches allow participants to confirm the validity of their bets without revealing their content. State-of-the-art cryptography techniques including hashing (SHA-256, SHA-3), elliptic curves (ECC), asymmetric encryption (RSA) and digital signatures are used to ensure data security. The experimental part of the work emphasizes on performance analysis of the proposed system using queueing theory to simulate network load and computational cost. The results show that the developed model provides a high level of privacy and scalability, which makes it promising for use in real applications.