GDPR Compliance Vs. Blockchain Debate – ALTCOIN MAGAZINE

Tracking consent of user becomes easier with Blockchain technology. With its permanent record of data and unbreachable access to data, Blockchain ensures that consent received from users is always on record and customer will not be able to claim that they never acceded consent for collection of their data or usage of their personal information to provide any service.

The anonymity offered by Blockchain is also a great benefit that suits GDPR compliance. For example, in case of permissioned blockchains, transactions can be made in a fully anonymous fashion without even letting the other people know — who are sharing the same network — about the origin or destination of a transaction. Restricted access for end-users ensure that their data is secure and anonymity becomes their best safeguard against data breaches at the same time.

Transactions performed via blockchain not only have the tendency of being anonymous but they are also strictly one-way. You cannot force a refund like in the case of usual banking and transaction methods.

Another possible cause of concern for enterprises and businesses using blockchain for conducting business is deleting the user data. GDPR requires businesses to delete any data they have acquired from customers in order to provide service and any history of business they might have conducted with your company. Blockchain doesn’t support this feature. It is like a permanent trailblazer and you just cannot delete this data and this is one of the core reasons that made this technology so famous in short span of time. Your data or previous operational history is saved forever but GDPR compliance becomes a problem with this feature.

Blockchain offers a complex data infrastructure and application landscape. This can further make things difficult for a company that is looking to get regulators off their back by adopting transparent methods for collection of customer data and clearly defined usage of that personal information. Risks of unintended errors are also multiplied as the complexity of the employing technology (like Blockchain) starts getting out of hand.

GDPR and Blockchain have a lot to offer, not only for end-users but service providers and businesses as well. All they need is a genuine effort on part of companies to understand the potential of Blockchain and how it can be utilized to better provide services without making a compromise on GDPR compliance. Features like unbreachable databases and superior encryption prowess mean that blockchain can act as an ultimate weapon to get relief from hackers and prevent monetary penalties from regulators.