Enhancing Privacy and Usability in Blockchain Traceability Systems

Abstract

Blockchain technology has emerged as a promising solution for improving traceability across global supply chains, offering tamper-proof records and increased transparency.However, concerns related to data privacy, confidentiality, and interoperability continue to hinder widespread adoption.This paper proposes a comprehensive framework addressing these key challenges by combining privacy-preserving techniques-such as permissioned ledgers, zero-knowledge proofs, and verifiable credentials-with industry-driven data standards (GS1 EPCIS, W3C Verifiable Credentials).We first review the landscape of blockchain traceability solutions and outline critical requirements from regulatory and operational perspectives.Next, we detail our proposed privacy-preserving and interoperable architecture, incorporating off-chain storage, role-based permissions, and selective disclosure mechanisms to accommodate the diverse needs of modern supply chains.We illustrate these concepts through a high-level system design, accompanied by implementation considerations.Our evaluation highlights that successful adoption depends on carefully balancing transparency and confidentiality, supplemented by robust governance structures and standard APIs.The paper concludes by discussing future directions for blockchain traceability, emphasizing scalability, user-centric design, and cross-chain interoperability as critical enablers of a global, privacypreserving supply chain ecosystem.