A new battle is brewing in the Blockchain Technology arena and it is unclear which camp will be declared the winner.
The General Data Protection Regulation (GDPR) came into effect in May 25, 2018.This law provides users with the right to access, edit and delete their collected information. This law certainly appeals to user’s fears over rights to privacy especially given the likes of the recent Cambridge Analytica scandal. The burning question now is how this impacts Blockchain technology which by its nature is all transparency and irreversible actions that means less privacy. Once a data is stored “on the block”, it is near impossible to change or delete it.
In a battle between GDPR and Blockchain technology, who will win?
How can the rights to privacy and control over one’s data which the GDPR covers and Blockchain’s immutable, transparent permanent and inherently ultra secure attributes co-exist?
How can the two come into terms with one another? Due to its nature, blockchain is a permanent, tamper-proof record, unable to be controlled by a central authority. It creates an impenetrably secure environment, locking all data in and preventing it from being altered. That is why GDPR is not blockchain-compatible. GDPR focuses on giving users control of their personal data, allowing them the right to alter the data used. Do we have to sacrifice transparency for data privacy, and vice versa?
There is no denying that EU’s GDPR creates new and untested challenges when storing personal information on blockchain but that doesn’t mean blockchain companies the likes of Parity, the wallet and blockchain provider, should discontinue their services like PICOPS due to the restrictions enforced by GDPR. It is down to Blockchain start-ups to design new applications that comply with the laws.
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