Towards a Blockchain-Based Zero-Knowledge Model for Secure Data Sharing and Access

Abstract

Blockchain-based applications cover numerous fields from financial services to the Internet of Things (IoT). The smart contracts which are the programmable blocks that execute predefined command are executed on participating nodes. Such execution leads to privacy and confidentiality issues as nodes process data to execute the smart contracts. A zero-knowledge proof is used in cryptocurrencies for allowing spending digital money without revealing the identity of persons. In this paper, we aim to introduce a zero-knowledge proof model using blockchain to enable sharing data securely between services and devices without affecting the confidentiality or privacy of data. The security model fuses digital assets within a blockchain and serves as a trustless layer for protecting the data, which results in enhancing the security of data sharing. We apply the model to two recently introduced concepts in Bahrain: The National Healthcare Insurance Scheme and government-collected VAT. Applying the model for exchanging medical data and sharing medical records between the private sector and public sector will enable maintaining the privacy of patients and increasing efficiency of operations. For VAT, the model helps secure the overall process of VAT reporting and B2B transactional processes in general.