Proofs of Information Symmetry for Meeting of the Minds in E-Commerce Transactions

Abstract

Distributed Ledger Technology (DLT) has gained significant attention due to its potential for enabling secure and decentralised systems. However, this premise can only be achieved if information asymmetry is eliminated and there is equal and simultaneous access to consistent and transparent data by all participants in the network. In this article, we explore various DLT information symmetry challenges, including theoretical fundamentals and practical hurdles in relation to the technology stack. We explore the potential of using DLT to facilitate mutual knowledge sharing in E-Commerce scenarios via Proofs of Information Symmetry (PoIS). We found that PoIS have the ability to significantly improve trust between transacting parties, specifically in the context of producer-consumer relationships and associated investor-asset management and contract obligations. In addition, we discovered that the effectiveness of PoIS strongly depends on the presence of a reliable notification system. Our study found that the utilisation of Zero-Knowledge (ZK) proofs can improve confidence among transaction partners, particularly in situations where safeguarding trade secrets or maintaining the privacy of agents is necessary. Our results are demonstrated by deriving from testing PoIS in a commercial context that includes a vehicle under a short-term lease management setup. This evaluation demonstrates the benefit of a contextual ZK proof that maintains the individual privacy of trading partners.