Nevertheless, blockchain is considered a foundational technology that will provide the basis for a fundamental paradigm shift, particularly when viewed through the lens of financial services. Made up of existing technology components, blockchain is a Distributed Ledger Technology (DLT) with a copy of the data, which is not executed in a single entity or jurisdiction. These different jurisdictions pose interesting questions and challenges around legislation, regulation and data privacy around the world. due to the absence of legal frameworks related to data privacy.
There are specific cases of tensions between regulations related to data privacy and blockchain technology, such as the General Data Protection Regulation (GDPR) of the European Union (EU). THE GDPR raises the data centralizationwhile blockchain explicitly calls on its decentralization.
Another point of the GDPR that conflicts with blockchain has to do with the immutability on which the latter is based; for which the deletion or modification of data (present in the principles of the GDPR) occurs only in exceptional circumstances.
How can blockchain be used while respecting data privacy?
Although there are some concerns about whether data regulations, such as GDPR, should be reviewed to take into account the advances proposed by technologies such as blockchain, these tensions are not insurmountable.
Blockchain is a technology that will have a significant impact across the industry and has already identified concrete benefits for Data Protection Regulations in the following ways:
- Responsibility: who accessed the data and when did it happen?
- Compliance with the obligations of the Data Controller
- Greater control of the interested parties over their personal data
- A technology that allows a greater exchange of data
In conclusion, although blockchain can generate certain contradictions regarding the use of data, this technology is here to change the way many things are done: create applications, provide security and share information. It is a question of the legislation do not neglect the common good but adapt to an increasingly dynamic and innovative world.
Head of Engineering Office at Intive Americas.
Source: Ambito
