631-905-9617    Get SUPPORT

Suffolk Computer Consultants 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
 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Sunday, October 21 2018
If you'd like to register, please fill in the username, password and name fields.

Captcha Image

Mobile? Grab this Article!

QR-Code dieser Seite

Tag Cloud

Tip of the Week Security Business Computing Technology Best Practices Cloud Privacy Cybersecurity Network Security Managed IT Services Malware Communications Tech Term Backup Smartphones Productivity Microsoft Communication Business Hardware Passwords Hosted Solutions Hackers Browser User Tips Efficiency Internet VoIP Google Email Business Management Small Business Android Ransomware Software Outsourced IT Save Money Alert Social Media Wi-Fi Innovation Bandwidth Twitter Data Backup Miscellaneous Saving Money Smartphone Windows 10 Data Recovery Cloud Computing Employer-Employee Relationship Business Intelligence Applications Computer Data Internet of Things Collaboration Router Microsoft Office Password Automation Access Control Analytics Workplace Tips Users VoIP BDR Government IT Services Data Breach Blockchain Managed IT Services Mobile Devices Data Management Settings Patch Management Phishing Vulnerability Virtualization Excel Mobile Device Office Apps IT Support Marketing Gadgets Network Battery Company Culture Virus Politics Cortana Word Website Office 365 Tech Terms Compliance App Hacking Windows How To Virtual Assistant Spam Wireless Paperless Office Business Continuity Wireless Charging Mobile Device Management Cost Management IT Support Physical Security Managed IT Service Data Protection Gmail Remote Monitoring Computers Retail Law Enforcement Information Holiday Artificial Intelligence Dark Web VPN WiFi Cybercrime Workers Networking Scam Productivity Tip of the week Remote Computing Chrome Managed Service Dongle G Suite Edge Threat Specifications Telecommute Movies eCommerce Authorization Processors Value SaaS Spam Blocking Business Technology Big Data Telecommuting Storage Lead Generation Mobile Security Copy Apple Connectivity Bring Your Own Device News Spotify Laptop Printing Staffing Multi-Factor Security Conferencing Data loss Unified Communications Licensing Online Shopping Spyware Email Management Sales Plug-In Millennials Error Hiring/Firing Operating System Information Technology Paste iPhone Cables Network Attached Storage Streaming Media Gadget Technology Tips Hybrid Cloud Telephone System Paper Content Filtering Staff RAM Travel Troubleshooting Work/Life Balance HP Database Printer Server Tablet Proactive IT Touchscreen Managed IT WannaCry Environment Entertainment Biometrics Voice over Internet Protocol Server Management Downloads Facebook Shortcut Two-factor Authentication Reporting Botnet Backup and Disaster Recovery Disaster Recovery Office Tips Automobile Ink Recovery Websites Microsoft Teams Maintenance Live Streaming Update Document Management Tactics Cleaning Printers Knowledge Remote Monitoring and Management CrashOverride Files Telephony Microsoft Office 365 HIPAA e-waste Access Telephone Systems File Sharing Trends User Tip Tech Support Medical IT Hard Drives SSD Remote Support IT budget PowerPoint Analysis Antivirus Managing Stress WhatsApp Safety Outlook Digital Internet Explorer Google Drive Comparison A.I. Voice over IP Authentication Server Hard Drive disposal BYOD Remote Control User Security Amazon Machine Learning GDPR Inventory Education Smart Technology Hosted Solution Google Maps IT Management Sports Phone System Competition Avoiding Downtime Gaming Console Customer Relationship Management Emergency IP Address Scheduling Dark Data Samsung Scalability Managed Service Provider Synergy Video Games Customer Service Worker Mobile Office Quick Tips Instagram IaaS Upgrade DDoS Money Television Domains Credit Cards Regulation Emoji Employer Employee Relationship Printer HaaS Windows 10 Fun Public Speaking Freedom of Information Unified Threat Management Presentation Lithium-ion battery Encryption Leadership Augmented Reality Yahoo Current Events Wireless Technology 5G Search Computer Care IBM Net Neutrality Hacker Vendor Management Personal Information The Internet of Things Budget Autocorrect

Newsletter Sign Up