## 5 Blockchain-Based Supply Chain Security Solutions and Integration Models
### Data Privacy with Zero-Knowledge Proof (ZKP) and Confidential Transactions
ZKPs enable a proving party to demonstrate the truth of a statement to a verifying party without disclosing any additional information. In blockchain-based systems, ZKPs are widely used to preserve privacy, verify asset ownership, and facilitate secure authorization. For example, a user can prove their possession of a certain amount of funds without revealing the exact amount or transaction details [87; 89; 90]. \begin{table}
\begin{tabular}{l l l} \hline \hline
**ZKP Property** & **Mathematical Definition** & **SCM Implication** \\ \hline Completeness & \(\forall\in L,\ if\ P(x)\ is\ honest\Rightarrow V(x)=accept\) & Valid supply data (e.g., temperature logs) from honest actors are always accepted. \\ Soundness & \(\forall\
otin L,\ Probability[V(x)=accept]<\mathcal{E}\) & False claims (e.g., counterfeit goods) are reliably rejected by the verification. \\ Zero-Knowledge & \(\exists S:S(x)\approx View_{v}(P(x))\) & Business secrets (e.g., pricing, recipes) are protected while still proving validity. \\ \hline \hline \end{tabular}
\end{table} 
Table 6: Formal definitions of ZKP properties and their direct implications in blockchain-enabled supply chain management. Among ZKP variants, several protocol families have emerged with distinct trade-offs in terms of computational efficiency, cryptographic assumptions, and integration requirements. As illustrated in Figure 6, the most commonly implemented protocols in modern blockchain infrastructures are zk-SNARK, zk-STARK, Bulletproofs, and Ligero. These protocols all adhere to the core ZKP principles of completeness, soundness, and zero-knowledge, yet differ in how they achieve performance, scalability, and trust guarantees in practice. While these protocols share the same foundational ZKP principles, their implementation profiles differ substantially. Factors such as proving time, verification efficiency, and trusted setup requirements directly affect their integration into blockchain-based supply chains [72,73]. Table 7 provides a quantitative comparison of these protocols, highlighting their suitability for diverse logistical and regulatory environments. The SCM suitability classification reflects a multi-dimensional evaluation of each ZKP protocol's compatibility with supply chain requirements, taking into account both computational metrics (e.g., proof size, proving and verification times, trusted setup) and conceptual alignment with the three fundamental principles defined in the paper title: security, traceability, and data integrity (S/T/I). zk-STARK demonstrates full alignment with all three principles (S/T/I), offering quantum resistance, transparency, and high verification performance. However, its large proof size and lower implementation maturity present integration challenges, especially in constrained environments, and is therefore considered Moderate-High in suitability. Bulletproofs, while lacking quantum security and offering only partial integrity coverage, remain highly attractive for real-time, lightweight SCM use cases due to their compact