Paper 2024/1775

zkMarket: Ensuring Fairness and Privacy in Decentralized Data Exchange

Abstract

Ensuring fairness in blockchain-based data trading presents significant challenges, as the transparency of blockchain can expose sensitive details and compromise fairness. Fairness ensures that the seller receives payment only if they provide the correct data, and the buyer gains access to the data only after making the payment. Existing approaches face limitations in efficiency, particularly when applied to large-scale data. Moreover, preserving privacy has also been a significant challenge in blockchain. In this paper, we introduce zkMarket, a privacy-preserving fair trade system on the blockchain. We ensure fairness by integrating encryption with zk-SNARKs, enabling verifiable proofs for fair trading. However, applying zk-SNARKs directly can be computationally expensive for the prover. To address this, we improve efficiency by leveraging our novel matrix-formed PRG (MatPRG) and commit-and-prove SNARK (CP-SNARK), making the data registration process more concise and significantly reducing the seller's proving time. To ensure transaction privacy, zkMarket is built upon an anonymous transfer protocol. Experimental results demonstrate that zkMarket significantly reduces the computational overhead associated with traditional blockchain solutions while maintaining robust security and privacy. Specifically, our evaluation quantifies this high efficiency: the seller can register 1MB of data in 2.8 seconds, the buyer can generate the trade transaction in 0.2 seconds, and the seller can finalize the trade within 0.4 seconds.