In the context of the digital age, data privacy and security issues are increasingly prominent. Blockchain technology plays an important role in data sharing due to its transparency and immutability, but it also brings the risk of privacy leakage. Zero knowledge proof technology provides a solution for verifying data correctness without exposing data content, which is particularly important for blockchain as it can ensure the validity and compliance of transactions while protecting user privacy. Although zero knowledge proof is quite mature in theory, its application in blockchain systems still faces challenges such as computational efficiency, complexity of smart contracts, and system compatibility. This study aims to propose a privacy protection scheme that supports interactive zero knowledge proof by improving the homomorphic encryption Paillier algorithm, in order to enhance the privacy protection capability of blockchain systems and maintain system efficiency and security. The study will adopt an interdisciplinary approach, combining cryptography, computer science, and network security theory, to deeply analyze the application effect of zero knowledge proof technology in blockchain, explore its optimization space and applicability.