Employing privacy-preserving techniques, such as zero-knowledge proofs (ZKPs), is a best practice in blockchain systems to secure sensitive information without compromising data integrity or transparency. ZKPs enable one party to prove to another that a statement is true without revealing any information beyond the validity of the statement itself. In the context of blockchain, this allows for the verification of transactions or credentials without exposing underlying data, thereby enhancing privacy. For example, ZKPs have been integrated into blockchain protocols like Zcash to facilitate anonymous transactions, ensuring that transaction details remain confidential while still allowing for network verification. Additionally, advancements such as zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge) have been developed to improve the efficiency and scalability of ZKPs in blockchain applications. By incorporating ZKPs, blockchain platforms can maintain the confidentiality of sensitive information, comply with privacy regulations, and build trust among users.
https://ieeexplore.ieee.org/document/10060661