SMART CONTRACTS AS PRIVACY-PRESERVING MECHANISMS IN DISTRIBUTED DIGITAL TWIN SYSTEMS

Abstract

Abstract. The deployment of distributed digital twin systems in sectors such as healthcare, manufacturing, and critical infrastructure has significantly heightened the importance of data privacy. These systems interact with numerous devices and users, increasing the risk of data leakage or unauthorized access to sensitive information. Traditional centralized identity management and access control mechanisms no longer meet the scalability, autonomy, and privacy requirements of modern distributed architectures. This article explores how smart contracts operating in blockchain environments can provide decentralized access management for digital twin systems. Smart contracts enable transparent and reliable enforcement of access policies without relying on centralized authorities. The study examines the integration of modern cryptographic technologies into smart contract workflows, including zero-knowledge proofs, decentralized identifiers (DIDs), and confidential computing. These technologies make it possible to verify access rights and perform secure operations without revealing sensitive data. The article also analyzes the limitations of existing solutions, such as the high transaction costs of public blockchains, the limited performance of traditional smart contracts, and the challenges of integrating confidential computing into resource-constrained devices. The authors outline future research directions, including optimizing Layer 2 architectures to improve performance, developing secure auditing mechanisms, and ensuring compatibility with self-sovereign identity systems. The conclusions emphasize that privacy should be treated as a fundamental property of digital twin systems. In these environments, smart contracts must serve not only as governance logic but also as trusted agents that guarantee compliance with access policies and regulatory requirements in decentralized ecosystems.