This study proposes an privacy-protection method for blockchain transactions based on lightweight homomorphic encryption, aiming to ensure the security of transaction data and user privacy, and improve transaction efficiency. We have built a blockchain infrastructure and, based on its structural characteristics, adopted zero-knowledge proof technology to verify the legitimacy of data, ensuring the authenticity and accuracy of transactions from the application end to the smart-contract end. On this basis, the Paillier algorithm is used for key generation, encryption, and decryption, and intelligent protection of blockchain transaction privacy is achieved through a secondary encryption mechanism. The experimental results show that this method performs well in privacy and security protection, with a data leakage probability as low as 2.8%, and can effectively defend against replay attacks and forged-transaction attacks. The degree of confusion remains above 0.9, with small fluctuations and short running time under different key lengths and moderate CPU usage, achieving lightweight homomorphic encryption. This not only ensures the security and privacy of transaction data in blockchain networks, but also reduces computational complexity and resource consumption, better adapting to the high-concurrency and low-latency characteristics of blockchain networks, thereby ensuring the efficiency and real-time performance of transactions.