An Efficient NIZK Scheme for Privacy-Preserving Transactions over Account-Model Blockchain

We introduce the abstract framework of decentralized smart contracts system with balance and transaction amount hiding property under the ACCOUNT architecture. To build a concrete system with such properties, we utilize a homomorphic public key encryption scheme and construct a highly efficient non-interactive zero knowledge (NIZK) argument based upon the encryption scheme to ensure the validity of the transactions. Our NIZK scheme is perfect zero knowledge in the common reference string model, while its soundness holds in the random oracle model. Compared to previous similar constructions, our proposed NIZK argument dramatically improves the time efficiency in generating a proof, at the cost of relatively longer proof size.