Privacy Preserving Supply Chain Traceability: Leveraging Zero Knowledge Proofs in Blockchain Networks

Abstract

Abstract:  Regulators and consumers demand end to end traceability, yet firms hesitate to publish sensitive supplier links. This paper integrates zk SNARK proofs with hybrid public–private blockchains to reveal product provenance without exposing commercial secrets. Each supplier commits a hashed batch certificate and later produces a zero knowledge proof attesting that its inputs satisfy regulatory constraints (e.g., organic origin, temperature compliance). Auditors verify proofs on a public ledger, while detailed data remain encrypted on a permissioned sidechain accessible only to authorised nodes. A pilot spanning coffee producers in Kerala and roasters in Europe processed 4?000 lots, with proof verification times under 90?ms and no leakage of shipment identifiers. Economic analysis indicates a 2.1?% logistics cost reduction by eliminating redundant paper audits and dispute resolution.

Keywords: Zero Knowledge Proofs, Supply Chain, Hybrid Blockchain, Privacy, Compliance.