I'm wondering if the following scenario could work with smart contracts. I'm very new to Blockchain so what I'm saying might sound too silly.
I have 10 users who are sharing a common resource. There is an efficient resource allocation mechanism (which I'm not gonna explain for the sake of simplicity). The allocation mechanism receives some information from each user and decides on a final allocation. I do not have a central trustable entity to run the mechanism and none of the users is trusted by all the others so we can choose them as the host to run the mechanism.
1- Does it make sense to say let us allow all the users run the mechanism as a smart contract and record the results in the blockchain?
2- If yes, the problem is that the mechanism needs the information from all the users to run properly and this information is private to each user. Is there any solution for this?