Design principle DP2: Maintain the balance under privacy requirements
Principle of ensuring privacy while maintaining a balanced blockchain trilemma through efficient and resilient cryptography and minimized control mechanism.
Aim, implementer, and user: For developers and researchers of blockchain-based solutions (implementers), addressing use cases such as procurement (users), aiming to leverage their solution by integrating privacy while maintaining the equilibrium of the scalability, security, and decentralization trilemma (aim).
Context: In inter-organizational settings with trust, discontinuity, and inefficiency challenges, where privacy is additionally required.
Mechanism 2.1: Ensure that the chosen Layer 2 solution applies efficient ZKPs, with proof generation occurring in a secure off-chain environment. Rationale: because it safeguards privacy without compromising scalability, by ensuring confidential data handling in a secure environment, such as a Trusted Execution Environment, while enabling efficient proof generation.
Mechanism 2.2: Ensure that the chosen Layer 2 solution relies on ZKP protocols that provide long-term cryptographic resilience. Rationale: because it safeguards privacy without undermining security, ensuring that tamper-resistant and encrypted data on the blockchain remain resilient against potential adversaries, including quantum attacks.
Mechanism 2.3: Minimize reliance on centralized control structures within the smart contract ecosystem. Rationale: because it safeguards privacy without undermining decentralization, avoiding permissioned settings insofar as this remains consistent with prevailing regulatory obligations.
Source paper
This design principle is proposed by Designing a blockchain-based information system for procurement processes - Balancing decentralization, scalability, and security while maintaining privacy (Valeriya Arnold, Tobias Guggenberger, Jan Stramm, Nils Urbach, 2026).