Blog
home
  • Register

How Exactly Is the GDPR Working to Incorporate Blockchain?

How Exactly Is the GDPR Working to Incorporate Blockchain?

Now that the European Union’s General Data Protection Regulation (GDPR)--the most comprehensive individual data protection law in history--has gone into effect, it is important to know where your business stands in regard to your potential liability. One technology that has a rather lot of ambiguity surrounding it is blockchain, which is essentially an encrypted and distributed digital ledger. How is the development of blockchain, which is built on the idea of security through transparency, going to fare under the guidelines of the new GDPR regulations?

Let’s start with the GDPR itself. Despite not using the PII designation that we’ve come to know, the regulation is the strongest data protection law ever established for its overreaching stance of protecting any individual that is doing business within the member nations of the European Union. Additionally, any organization that works with suppliers or partners in the EU has to comply with the regulations found in the GDPR. If you’ve noticed that all of your favorite online businesses and websites have updated their privacy policy recently, it’s because the GDPR went into effect on May 25, and they need to protect themselves against the immense fines that come with non-compliance to the regulation.

The issue at hand for blockchain technology is actually in the GDPR mandate itself. Under the GDPR, if an organization that doesn’t need personal data, obtains personal data, they are not to keep that data, but are required to delete it. Since you can’t delete blockchain nodes, it stands to reason that the GDPR would be a problem for companies that are looking to innovate using blockchain technology. Ironically, blockchain and the GDPR, despite not having the same agenda in creation, have been cultivated with a shared purpose: to protect the rights of individuals to make the decisions about their own data, but blockchain is not designed to be GDPR-compatible as it is written today.

Technology moves fast so while the GDPR has just now gone into effect, it is already being challenged by technological innovation. The GDPR was designed to be technologically agnostic and flexible enough to allow for such innovations, the blockchain is already testing that. Many of the applications that blockchain is used for actually lend themselves well to the mandate triad of confidentiality, integrity, and availability. In blockchain, the transactions themselves use encryption to be confidential, but the overall ledger, and this is the problem, will still be transparent.

For example, Joe could pay with his blockchain-based account for a physical (as most of the EU has universal healthcare). The particulars (account number, and other personal information) could be hidden, but the record would show that Joe paid so many euros worth of cryptocurrency for a physical. Under the GDPR, because that information, while encrypted, is still in possession of the company that has no rights to it--and it can’t be deleted from the blockchain--it constitutes a breach of the GDPR. Many EU-based companies have stopped accepting Bitcoin and other distributed cryptocurrencies as payments (for a litany of reasons, one being the GDPR).

Now, the GDPR only covers EU-member countries and people doing business with them, but with how much money is being invested in venture capital for blockchain research and application development, it stands to reason that the EU governing body will have to make eventual amendments to the mandate.

The most interesting question going forward is, which is the future of data security? Is it GDPR-like mandates like the California Consumer Privacy Act (CCPA), or is it blockchain itself? What do you think about the GDPR regulation? Would you like to see data privacy be as protected in your country? Or do you think that it is a hindrance to innovation and progress? Leave your comments below and return to our blog regularly. 

Sexy Scam Relies on Your Belief that Someone Was W...
Intro to Your Tech: Software as a Service
 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Wednesday, August 15, 2018

Captcha Image

Mobile? Grab this Article!

QR-Code dieser Seite

Tag Cloud

Tip of the Week Security Best Practices Business Computing Technology Tech Term Privacy Cybersecurity Network Security Communications Smartphones Malware Microsoft Android Cloud Hardware Communication Email VoIp Software Social Media Internet Managed IT services Wi-Fi Ransomware Passwords Google Backup Mobile Devices IT Support Business Management Small Business Data Patch Management Productivity Employer-Employee Relationship Blockchain Applications Business Intelligence Information Data recovery Excel Gmail Browser Chrome Tech Terms Cost Management Scam Data Breach Hosted Solutions Hackers Computers Automation Microsoft Office Computer Wireless IT Services Networking Internet of Things Business Artificial Intelligence Data Backup Outsourced IT Save Money Cortana Word Router Government Remote Computing Wireless Charging Smartphone Virus Windows 10 How To Managed IT Service Compliance Virtual Assistant Collaboration VPN Saving Money Innovation Virtualization Network BDR Physical Security Phishing Cloud Computing Data Management Data Protection Downloads Managed IT Services Tablet Settings Access Control WannaCry Bring Your Own Device Safety User Security Telephony Sports Reporting RAM Data loss Workers Threat Remote Monitoring and Management Facebook Comparison Marketing Trends Database Tip of the week Big Data Amazon Technology Tips Apple Network Attached Storage Medical IT Environment HIPAA Congratulations Edge Hybrid Cloud Business Technology Voice over IP Travel HP Microsoft Teams Spam File Sharing Millennials Botnet Printing IT budget Twitter Specifications A.I. Cybercrime Users Knowledge Battery iPhone Connectivity Password SaaS e-waste Hard Drive WhatsApp Cables Dongle Holiday Website Education Document Management Company Culture Antivirus Remote Monitoring Paper Inventory Conferencing Lead Generation Movies Machine Learning Tactics News Laptop Workplace Tips Backup and Disaster Recovery Licensing Apps Efficiency GDPR disposal Processors Voice over Internet Protocol Bandwidth eCommerce Live Streaming Paperless Office Managing Stress Staff Retail Ink IT Management Mobile Security Office Law Enforcement Telecommuting Telephone System Maintenance Plug-In Hard Drives User Tips Tech Support Streaming Media Server Management Value User Tip Spyware Analytics Sales Online Shopping Digital G Suite Websites Miscellaneous Office 365 Remote Support PowerPoint Operating System Content Filtering Alert Vulnerability Unified Communications Telecommute Cleaning Internet Explorer Proactive IT SSD Server Thank You Analysis Gadgets Managed Service WiFi Regulation

Latest News & Events

Please join us in congratulating Bill Vann on his promotion to Customer Success Manager....

Contact Us

Learn more about what Data Net can do for your business.

Call Us Today
Call us today
(760) 466-1200

5795 Kearny Villa Road
San Diego, California 92123