How are we using Zero-Knowledge Proofs to create on-chain privacy for Digital Product Passport?

🔓 Brands' Privacy Concerns on Public Blockchain

Brands are eager to tokenize their products due to the numerous advantages offered by the Web3 ecosystem. However, this enthusiasm is tempered by significant privacy concerns.

Blockchain is a public ledger, recording all transactions visible through blockchain explorers. This transparency can be disadvantageous in certain circumstances. For brands, if all NFTs details become public, competitors can exploit the information related to their Digital Product Passports, such as production volume, sales figures, return rate and more.

Privacy is therefore crucial for maintaining a competitive edge.

🔒 Ensuring Privacy in Tokenization

We are excited to introduce Arianee's Full Privacy feature, a solution that ensures anonymity in blockchain transactions for brands and their partners. This feature allows DPP issuers to mint and manage DPPs anonymously, ensuring that the issuer's identity remains secure and hidden.

🔦 The Mechanics Behind Full Privacy

To enable brands to manage their DPPs securely, we have developed an authentication system based on Zero-Knowledge Proofs (ZKP). But what is ZKP?

Imagine the concept using a "Where's Wally?" scenario. In this scenario, Peggy is the prover, and Victor is the verifier. Peggy wants to prove to Victor that she knows Wally's location without revealing any details about Wally's surroundings.

Peggy demonstrates this by using a large black card with a precisely cut Wally-shaped hole.

She tapes the puzzle, with Wally in it, to the back of the card so that Wally aligns perfectly with the hole.

Victor, observing from the front, sees Wally through the hole but cannot see the rest of the puzzle or its context.

This convinces Victor that Peggy knows Wally's location (completeness) while keeping the surrounding details secret (zero knowledge).

This process ensures Victor's trust in Peggy's claim (soundness).

For a deeper understanding, read Patrick Woodhead's article "A Zero Knowledge Proof for Where’s Wally."

In practical terms, instead of using your wallet address to authorize actions, you can use a ZKP. This ZKP, signed by the brand's wallet, allows you to execute blockchain transactions without revealing the wallet's identity, maintaining complete anonymity.

In the context of the Arianee Protocol, this method enables you to prove your authorization to perform actions without revealing your identity. It allows you to enjoy all the advantages of blockchain while preserving your brand’s anonymity.

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