The Boomerang protocol: A Decentralised Privacy-Preserving Verifiable Incentive Protocol
In the era of data-driven economies, incentive systems and loyalty programs, have become ubiquitous in various sectors, including advertising, retail, travel, and financial services. While these systems offer advantages for both users and companies, they necessitate the transfer and analysis of substantial amounts of sensitive data. Privacy concerns have become increasingly pertinent, necessitating the development of privacy-preserving incentive protocols. Despite the rising demand for secure and decentralised systems, the existing landscape lacks a comprehensive solution. In this work, we propose the BOOMERANG protocol, a novel decentralised privacy-preserving incentive protocol that leverages cryptographic black box accumulators to securely and privately store user interactions within the incentive system. Moreover, the protocol employs zero-knowledge proofs to transparently compute rewards for users, ensuring verifiability while preserving their privacy. To further enhance public verifiability and transparency, we utilise a smart contract on a Layer 1 blockchain to verify these zero-knowledge proofs. The careful combination of black box accumulators and zero-knowledge proofs makes the BOOMERANG protocol highly efficient.