zk-Agreements: A Privacy-Preserving Way to Establish Deterministic Trust in Confidential Agreements

Abstract: Digital transactions currently exceed trillions of dollars annually, yet traditional paper-based agreements remain a bottleneck for automation, enforceability, and dispute resolution. Natural language contracts introduce ambiguity, require manual processing, and lack computational verifiability, all of which hinder efficient digital commerce. Computable legal contracts, expressed in machine-readable formats, offer a potential solution by enabling automated execution and verification. Blockchain-based smart contracts further strengthen enforceability and accelerate dispute resolution; however, current implementations risk exposing sensitive agreement terms on public ledgers, raising serious privacy and competitive intelligence concerns that limit enterprise adoption. We introduce zk-agreements, a protocol designed to transition from paper-based trust to cryptographic trust while preserving confidentiality. Our design combines zero-knowledge proofs to protect private agreement terms, secure two-party computation to enable private compliance evaluation, and smart contracts to guarantee automated enforcement. Together, these components achieve both privacy preservation and computational enforceability, resolving the fundamental tension between transparency and confidentiality in blockchain-based agreements.