zkCross: A Novel Architecture for Cross-Chain Privacy-Preserving Auditing

One of the key areas of focus in blockchain research is how to realize privacy-preserving auditing without sacrificing the system's security and trustworthiness. However, simultaneously achieving auditing and privacy protection, two seemingly contradictory objectives, is challenging because an auditing system would require transparency and accountability which might create privacy and security vulnerabilities. This becomes worse in cross-chain scenarios, where the information silos from multiple chains further complicate the problem. In this paper, we identify three important challenges in cross-chain privacy-preserving auditing, namely Cross-chain Linkability Exposure (CLE), Incompatibility of Privacy and Auditing (IPA), and Full Auditing Inefficiency (FAI). To overcome these challenges, we propose zkCross, which is a novel two-layer cross-chain architecture equipped with three cross-chain protocols to achieve privacy-preserving cross-chain auditing. Among these three protocols, two are privacy-preserving cross-chain protocols for transfer and exchange, respectively; the third one is an efficient cross-chain auditing protocol. These protocols are built on solid cross-chain schemes to guarantee privacy protection and audit efficiency. We implement zkCross on both local and cloud servers and perform comprehensive tests to validate that zkCross is well-suited for processing large-scale privacy-preserving auditing tasks. We evaluate the performance of the proposed protocols in terms of run time, latency, throughput, gas consumption, audit time, and proof size to demonstrate their practicality.