Exploring the potential for zero-knowledge proofs in supply chain management

Purpose Sharing information is crucial for the success of supply chains. However, sharing information requires a careful balance between privacy and transparency. This study aims to explore the potential of zero-knowledge proofs (ZKPs) to improve this balance by enabling partial information sharing. Design/methodology/approach The authors apply a three-stage methodology to inductively generate a set of use cases for ZKPs in SCM. The authors expand and validate this set of use cases through a series of interviews and analyze the technology based on the use cases and further insights generated in the interviews. Findings The authors find that ZKPs can provide trust and privacy, increase speed and reduce costs across supply chain functions and relationships. The authors identify the two mechanisms responsible for these benefits and theorize on the relationship between the novel type of trust provided by ZKPs and interpersonal trust. Research limitations/implications This explorative study shows that ZKPs have the potential to make a substantial impact on SCM. They increase the attractiveness of information sharing and enable transactional relationships where more strategic relationships were previously required. However, their implementation and reliance on accurate input data require further investigation. Originality/value The authors expand existing literature on partial information sharing by investigating the partial sharing of one individual item of information. In doing so, the authors explore a novel technology with unique characteristics relevant to SCM. To the authors’ knowledge, they conduct the first study regarding ZKPs in SCM.