What is EU Data Privacy and Blockchain? Here Explanation
What is EU Data Privacy and Blockchain? Here Explanation - The European Union has enacted a General Data Protection Regulation (GDPR) - the biggest change in data privacy legislation in the past 20 years. Even if you live outside the EU, chances are your inbox has been flooded with notice of privacy policy changes from every company you've handled your email address. Privacy and blockchain data so far seem to go hand in hand.
But what is the impact of this new EU law on the use of blockchain, given that technology has shown great potential in the field of data management?
Aims of the GDPR
GDPR has introduced major changes to the way companies and websites manage and process their user data. This includes explicit rights for users to request a copy of their personal data. In addition, companies are required to report any violations - and they face severe penalties for such violations. This GDPR applies not only to data processors operating in the EU. This also applies to any company or site that has a client or customer based in the EU.
GDPR legislation largely arises as a result of EU anger over the spying activities of the NSA, which was leaked by Edward Snowden in 2013. Since then, we have seen several high profile scandals, the latest involving Facebook and Cambridge Analytica .
But therein lies the problem of trying to protect user privacy as a matter of policy. The regulation looks reversed. GDPR only comes after several high profile data violations have occurred. European Union and government of cybersecurity members used by Google or Google. They also can not oversee the extent of the web to ensure GDPR compliance.
Data Privacy and Blockchain
Many in the blockchain community suggest that blockchain use could prevent Facebook / Cambridge Analytica scandal from happening in the first place. On data stored on blockchain distributed around some nodes is much more vulnerable to hack than if stored on a centralized server. The firmness of blockchain also means nothing can damage data that has been recorded. Privacy and blockchain data seem to work well.
Blockchain’s Incompatibility with the GDPR
The regulatory focus on blockchain to date is largely around the ICO financial regulations and the trading of digital currencies. As well as GDPR has created something paradoxical for data privacy and blockchain.
The law is written by overseeing online communication and cloud storage. Therefore, it includes explicit rules around user rights to be forgotten by their personal data erased on request. This presents a problem for the inherent integrity of the blockchain, since we can not go back in time and delete the data after it was recorded.
GDPR also requires organizations to have data controllers to handle such user requests. As a decentralized database, blockchain does not have a single person who controls the data. To whom can a user request such a request?
Solving the Paradox
There are several points to be made here. Firstly, GDPR has reached many years to achieve results, where time is growing rapidly in blockchain has been created so campaign groups have lobbied for Bitcoin to be excluded from the scope of GDPR.
Second, the blockchain community has been speculating about whether destruction of a private key can effectively equal "forgotten." If a user can destroy their private key in such a way that no one can access their blockchain data anymore, perhaps this may ultimately qualify the GDPR right to be forgotten. It has not been tested.
Data Privacy and Blockchain Companies
Until now there has been no blockchain proven in accordance with GDPR or vice versa. But a number of blockchain companies have directly dealt with user data and privacy. It is possible or even probable that some blockchain projects may have to change their offerings to remain obedient, post-GDPR.
Parity ICO Services offers KYC services to ICO and keeps a background check on blockchain. They announced on May 18 that they are, but will be closed down due to the significant resources needed to ensure GDPR compliance.
Off-chain Solutions
Civic is a company that offers ID verification services. Their approach to data privacy and blockchain may be a better model according to GDPR. This Civic will verify the identity of users outside the chain.
Parties wishing to verify an identity may adopt blockchain approval, or request additional data through the application. Users can decide if they want to share this data, control access through the app. Storing private data unrelated to the chain in this way may be an appropriate solution, and is currently recommended by IBM in their published March 2018 paper covering GDPR and blockchain topics. IBM also works with SecureKey to create digital identity devices using off-chain solutions similar to those used by the Civic.
Such off-chain solutions lose the opportunity to exploit the security benefits of data storage in blockchain. Other blockchain solutions that deal with terms directly addressed by GDPR include file or cloud storage solutions. AI startup using Big Data and crowd sentiments to make predictions may also be affected.
Source : https://coincentral.com/data-privacy-and-blockchain/
But what is the impact of this new EU law on the use of blockchain, given that technology has shown great potential in the field of data management?
Aims of the GDPR
GDPR has introduced major changes to the way companies and websites manage and process their user data. This includes explicit rights for users to request a copy of their personal data. In addition, companies are required to report any violations - and they face severe penalties for such violations. This GDPR applies not only to data processors operating in the EU. This also applies to any company or site that has a client or customer based in the EU.
GDPR legislation largely arises as a result of EU anger over the spying activities of the NSA, which was leaked by Edward Snowden in 2013. Since then, we have seen several high profile scandals, the latest involving Facebook and Cambridge Analytica .
But therein lies the problem of trying to protect user privacy as a matter of policy. The regulation looks reversed. GDPR only comes after several high profile data violations have occurred. European Union and government of cybersecurity members used by Google or Google. They also can not oversee the extent of the web to ensure GDPR compliance.
Data Privacy and Blockchain
Many in the blockchain community suggest that blockchain use could prevent Facebook / Cambridge Analytica scandal from happening in the first place. On data stored on blockchain distributed around some nodes is much more vulnerable to hack than if stored on a centralized server. The firmness of blockchain also means nothing can damage data that has been recorded. Privacy and blockchain data seem to work well.
Blockchain’s Incompatibility with the GDPR
The regulatory focus on blockchain to date is largely around the ICO financial regulations and the trading of digital currencies. As well as GDPR has created something paradoxical for data privacy and blockchain.
The law is written by overseeing online communication and cloud storage. Therefore, it includes explicit rules around user rights to be forgotten by their personal data erased on request. This presents a problem for the inherent integrity of the blockchain, since we can not go back in time and delete the data after it was recorded.
GDPR also requires organizations to have data controllers to handle such user requests. As a decentralized database, blockchain does not have a single person who controls the data. To whom can a user request such a request?
Solving the Paradox
There are several points to be made here. Firstly, GDPR has reached many years to achieve results, where time is growing rapidly in blockchain has been created so campaign groups have lobbied for Bitcoin to be excluded from the scope of GDPR.
Second, the blockchain community has been speculating about whether destruction of a private key can effectively equal "forgotten." If a user can destroy their private key in such a way that no one can access their blockchain data anymore, perhaps this may ultimately qualify the GDPR right to be forgotten. It has not been tested.
Data Privacy and Blockchain Companies
Until now there has been no blockchain proven in accordance with GDPR or vice versa. But a number of blockchain companies have directly dealt with user data and privacy. It is possible or even probable that some blockchain projects may have to change their offerings to remain obedient, post-GDPR.
Parity ICO Services offers KYC services to ICO and keeps a background check on blockchain. They announced on May 18 that they are, but will be closed down due to the significant resources needed to ensure GDPR compliance.
Off-chain Solutions
Civic is a company that offers ID verification services. Their approach to data privacy and blockchain may be a better model according to GDPR. This Civic will verify the identity of users outside the chain.
Parties wishing to verify an identity may adopt blockchain approval, or request additional data through the application. Users can decide if they want to share this data, control access through the app. Storing private data unrelated to the chain in this way may be an appropriate solution, and is currently recommended by IBM in their published March 2018 paper covering GDPR and blockchain topics. IBM also works with SecureKey to create digital identity devices using off-chain solutions similar to those used by the Civic.
Such off-chain solutions lose the opportunity to exploit the security benefits of data storage in blockchain. Other blockchain solutions that deal with terms directly addressed by GDPR include file or cloud storage solutions. AI startup using Big Data and crowd sentiments to make predictions may also be affected.
Source : https://coincentral.com/data-privacy-and-blockchain/
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