Secure Digital Service Payments using Zero Knowledge Proof in Distributed Network

Performing a fair exchange without a Trusted Third Party (TTP) was considered to be impossible. With multi party computation and practices like Proof-of-Work (PoW), blockchain accomplishes a fair exchange in a trustless network. Data confidentiality is a key challenge that has to be resolved before adopting blockchain for enterprise applications where tokenized assets will be transferred. Protocols like Zcash are already providing the same for financial transactions but lacks flexibility required to apply in most of the potential use cases of blockchain. Most of the real world application work in a way where a transaction is carried out when a particular action is performed. Also, the zero knowledge proof method used in Zcash, ZKSNARK has certain weaknesses restricting its adoption. One of the major drawbacks of ZKSNARK is that it requires an initial trust setup phase which is difficult to achieve in blockchain ecosystem. ZKSTARK, an interactive zero knowledge proof does not require this phase and also provides security against post quantum attacks. We propose a system that uses two indistinguishable hash functions along with ZKSTARK to improve the flexibility of blockchain platforms. The two indistinguishable hash functions are chosen from SHA3-finalists based on their security, performance and inner designs.