(403) 210-2927    Get SUPPORT

OnSite I.T. Blog

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


No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Tuesday, October 23 2018

Captcha Image

Mobile? Grab this Article!

QR-Code dieser Seite

Tag Cloud

Tip of the Week Security Best Practices Technology Business Computing Network Security Tech Term Privacy Smartphones Cybersecurity Internet Cloud Malware Communication Browser Efficiency User Tips Hardware Microsoft Passwords Productivity Android Hosted Solutions Saving Money Communications Wi-Fi Email Data Small Business Google Managed IT services Ransomware Network Users Innovation Backup Blockchain Social Media Business Mobile Device Mobile Devices VoIP Applications Windows 10 Employer-Employee Relationship Business Intelligence Workplace Tips Internet of Things Software Business Management Marketing IT Support Collaboration Government Managed IT Service BDR Miscellaneous Cloud Computing Cortana Managed IT Services Save Money Data recovery Information Data Management Wireless Cost Management Computers Data Protection Wireless Charging Automation Analytics Tech Terms IT Services Networking Smartphone Computer Phishing Artificial Intelligence Data Backup Patch Management Data Breach Compliance Excel Router Virtual Assistant Virtualization Gmail Hackers Bandwidth Remote Computing VPN Outsourced IT Settings Streaming Media Dark Web Office 365 Specifications Edge Value IT Management Ink Reporting Knowledge Spyware G Suite Apple Telecommuting Remote Monitoring and Management Troubleshooting WannaCry Telecommute Unified Communications Authentication Facebook Maintenance Law Enforcement Telephony Battery Server Management Downloads Error Conferencing PowerPoint Medical IT HP Websites Bring Your Own Device Spam iPhone Workers Internet Explorer Analysis Business Technology Update HIPAA Data loss RAM Authorization Tip of the week Twitter Voice over IP Trends Office Technology Tips Database Amazon Sports SaaS Document Management Environment Hybrid Cloud Millennials Threat Managed Service Outlook Hard Drive Virus Microsoft Teams User Tip IT budget Inventory File Sharing Holiday Lead Generation A.I. Touchscreen Content Filtering Cybercrime Online Shopping Network Attached Storage GDPR Paperless Office Dongle e-waste Cables Mobile Security Printing Apps Safety Sales Processors Antivirus Company Culture eCommerce Machine Learning Movies Microsoft Office 365 Physical Security Backup and Disaster Recovery Tactics Plug-In Chrome Password Connectivity Storage Microsoft Office Hard Drives Comparison Digital disposal Voice over Internet Protocol Gadgets Operating System Paper Tablet Vulnerability Staff Managing Stress How To User Security Access Control Big Data Server Laptop SSD Proactive IT Website Customer Service Mobile Office Upgrade Domains Managed Service Provider Mobile Device Management Windows 10 Public Speaking Hiring/Firing Presentation Two-factor Authentication Lithium-ion battery Fun Quick Tips Augmented Reality Wireless Technology 5G Remote Monitoring Tech Support IBM Hacker Disaster Recovery The Internet of Things Productivity Budget Regulation Competition Search Customer Relationship Management IP Address Printers Alert