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Blockchain Vs Gdpr

Will Gdpr Block Blockchain?

Will Gdpr Block Blockchain?

Once it's on the blockchain, you can't delete it, and that could be a problem Anne Toth Head of Data Policy, World Economic Forum LLC Explore the latest strategic trends, research and analysis As someone who has worked in data policy and data protection for 20 years, I read privacy policies for a living. I take notice when I get the occasional email telling me that a website is updating their privacy policy or terms of service. Lately, that trickle has become a torrent in my inbox. The thing they all have in common is the effective date - May 25, 2018, the day the European Unions General Data Protection Regulation (GDPR) goes into effect. GDPR is a unified privacy regulation that largely harmonizes the various and disparate legal frameworks that cover the more than half a billion European data subjects, or as I prefer to call them, people. GDPR gives specifically articulated rights to people over their data so that the phrase, you own the data about you has meaning. These rights are enshrined in European law but making them actionable has not been simple. Adding complexity to the task is the fact that technology has a habit of changing quickly. Its well known that technology often leapfrogs ahead of existing regulatory frameworks, leaving legislators and regulators to play catch-up. Consider the example of blockchain. Blockchain has existed as a concept since 2008 but it has only recently exploded into public consciousness through valuations of cryptocurrencies like Bitcoin. Many technologists believe that blockchain will be more transformational than the internet itself. The global blockchain technology market is predicted to grow to 2.3 billion U.S. dollars by 2021 But whilst many people equate blockchain with Bitcoin and cryptocurrency, they are not the same. Blockc Continue reading >>

Blockchain Data Protection Law | Deloitte Legal Deutschland

Blockchain Data Protection Law | Deloitte Legal Deutschland

IV. Potential conflicts with data protection law Blockchain applications are currently amongst the most discussed topics when it comes to the precursors of the fourth industrial revolution. Within the global Deloitte network, the Deloitte Blockchain Institute was founded in order to analyze and consult on the technical and economic potentials and risks of blockchain applications for sector-specific industries (e.g. telecommunications or media ). The following article deals with blockchain applications from the perspective of data protection law, in particular the Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 (General Data Protection Regulation - "GDPR"), which will enter into force in May 2018. In addition to an approximation to the term blockchain (cf. section I.), the main question addressed by this article is, to what extent this technology will impact on those areas of life that have been traditionally regulated by analogue law and institutions (cf. section II.). Finally, the potential of blockchain is briefly addressed as an instrument of data protection (cf. section III.) and explains the extent to which data protection law may create certain boundaries to potential applications of blockchain technology (cf. section IV.). As the term already suggests, one of the essential characteristics of a blockchain is the concatenation of blocks. More specifically, such blocks are comprised of a certain number of cumulative records, the contents of which are interconnected in such manner that each subsequent block contains a cryptographic image of the previous block. Thus it can be ensured that data cannot be manipulated unrecognized after the respective data has been entered into a block, completed and "attached" to a subsequent blo Continue reading >>

Blockchain And Gdpr: Between A Block And A Hard Place

Blockchain And Gdpr: Between A Block And A Hard Place

Home News Blockchain and GDPR: Between a Block and a Blockchain and GDPR: Between a Block and a Hard Place Blockchain and other emerging distributed ledger technologies offer the promise of increased security, transparency and resilience based on the use of distributed, immutable records. At the same time, the European Union General Data Protection Regulation ( GDPR ), which takes effect May 25, 2018, governs the use and protection of personal data collected from or about any European Union resident. Personal data is defined very broadly and includes any information relating to an identified or identifiable natural person. Under current EU legal interpretations, this includes encrypted or hashed personal data, as well as public cryptographic keys that can be tied to a private individual. The penalties for failing to comply with the GDPR are harsh including fines of up to the greater of 20 million or 4 percent of a companys annual worldwide revenue. The GDPR: Centralized, Restricted and Removable The GDPR was developed based on an assumption that collected personal data would be controlled by an identifiable data controller and processed by the data controller or by a finite number of identifiable data processors and sub-processors. In order to protect the use of personal data, data controllers and processors must control who accesses the personal data, where and to whom it is transferred, and by whom it is accessed. The GDPR gives EU residents enforceable rights with respect to their personal data, including: the right to erasure of personal data when the personal data is no longer needed for the purpose for which it was collected, when the individual withdraws consent, or when continued processing of the data is unlawful; the right to require correction of incorrect d Continue reading >>

What Are The Compatibility Issues Between Gdpr And Blockchain?

What Are The Compatibility Issues Between Gdpr And Blockchain?

What are the compatibility issues between GDPR and blockchain? It may be difficult for blockchain solutions to fall in line with GDPR. Image: aanbetta/Shutterstock How will blockchain co-exist with GDPR after 25 May? GDPR is a transformative regulation for both EU data subjects and any organisations that deal with people within the bloc. The regulation itself had been in development for several years, having kicked off in earnest in January 2012 . The final text was agreed by the close of 2015 and it entered into force in February of 2016, with the implementation date set at 25 May 2018. While officials were getting granular with legal wrangling, other developments in the world of tech and business were gaining popularity. Blockchain technology is probably one of the most talked-about evolutions in the tech world but, while it is heralded for its innovative potential, it does present some major compatibility issues with the EU regulation. Siliconrepublic.com spoke to Laura Jehl, partner at law firm BakerHostetler in Washington DC. An expert in privacy, data protection, compliance and blockchain, she has noticed some areas where blockchain and GDPR may end up butting heads particularly in the realm of digital identity. I think, with digital identity solutions or anything using blockchain for identity, the intent is quite compatible with GDPR. Theres a sense of the individual having more control over the data and data minimisation in terms of what gets shared, and its all great until you get to the right of erasure and data portability, Jehl said. If whatever is on the blockchain is defined as personal data, then theyre fundamentally incompatible because the blockchain is immutable. She added that for EU data subjects to use the growing number of blockchain-enabled digit Continue reading >>

Major Blockchain Group Says Europe Should Exempt Bitcoin From New Data Privacy Rule

Major Blockchain Group Says Europe Should Exempt Bitcoin From New Data Privacy Rule

Major blockchain group says Europe should exempt Bitcoin from new data privacy rule Since people can store personal data in blockchains, the technology could fall under the purview of the upcoming European change to privacy law. But blockchain technology may be fundamentally incompatible with Europes new privacy rules, Washington, DC think tank Coin Center said today in a new post . The General Data Protection Regulation (GDPR) will take effect on May 25th this year, more than two years after it was first signed into law. Under the new rule, if an EU citizen requests that their personal data be erased from a companys records, the company will have to obey. But with blockchain, a complete erasure of any stored personal data might not be possible, experts told The Verge. Modifying data on a blockchain is very hard, Oxford Law lecturer Michle Finck told The Verge, If you were to delete or modify data from the blockchain to comply with the GDPRs rights to amendment or the right to be forgotten, you wouldnt just change that piece of data, but the hash of the block containing the data and of all subsequent blocks. Finck added, I think its safe to say that currently, most blockchains are incompatible with the GDPR, especially permissionless blockchains. She said that although many blockchain projects are currently thinking about how to design tech that would be GDPR-compliant, the problem is that there are so many points of tension...way beyond the right [for personal data] to be forgotten. Its the basics of blockchain technology. By their very nature, transactions on a blockchain arent meant to be deleted but to be recorded permanently. It would also be difficult to stop every place transmitting a Bitcoin transaction. This is by design, Andries Van Humbeeck, co-founder and b Continue reading >>

Will Blockchain Run Afoul Of Gdpr? (yes And No)

Will Blockchain Run Afoul Of Gdpr? (yes And No)

Will blockchain run afoul of GDPR? (Yes and no) The immutable nature of blockchain networks could break Europe's new GDPR rules. But when implemented properly, the distributed ledger technology could also be part of the solution for compliance. Use commas to separate multiple email addresses As the EU prepares to roll out new data protection regulations this month, concerns are emerging that they could dissuade businesses from rolling out blockchain-based projects because the online transaction technology might innately break the new rules. The EU's General Data Protection Regulation (GDPR) targets citizens' personally identifiable information (PII), providing transparency around its use and giving people the right to restrict its use or request it be deleted all together. [ Related: The top 5 problems with blockchain ] While GDPR never mentions PII, the new rules describing "personal data" are synonymous with it: "Any information that relates to an identified or identifiable living individual. Different pieces of information, which collected together can lead to the identification of a particular person, also constitute personal data." In short, it means any data that can be tied back to person's identity. Blockchain , which has taken the business world by storm , is an online electronic distributed ledger technology that can create an immutable record for recording a history of transactions; therefore, if blockchain were to be used as a type of database to transact with PII, it would by default run afoul of GDPR rules. Blockchain ledgers can be added to, but information on the network cannot be modified or deleted. It's a write-once, append-many technology. Gerry Stegmaier , a partner in the IP, Tech & Data Group of Washington-based law firm Reed Smith, said blockcha Continue reading >>

Blockchain Is On A Collision Course With Eu Privacy Law

Blockchain Is On A Collision Course With Eu Privacy Law

Blockchain is on a collision course with EU privacy law Those who have heard of blockchain technology generally know it as the underpinning of the Bitcoin virtual currency, but there are myriad organizations planning different kinds of applications for it: executing contracts , modernizing land registries , even providing new systems for identity management . Theres one huge problem on the horizon, though: European privacy law. The blocs General Data Protection law, which will come into effect in a few months time, says people must be able to demand that their personal data is rectified or deleted under many circumstances. A blockchain is essentially a growing, shared record of past activity thats distributed across many computers, and the whole point is that this chain of transactions (or other fragments of information) is in practice unchangeable this is what ensures the reliability of the information stored in the blockchain. For blockchain projects that involve the storage of personal data, these two facts do not mix well. And with sanctions for flouting the GDPR including fines of up to 20 million or 4 percent of global revenues, many businesses may find the ultra-buzzy blockchain trend a lot less palatable than they first thought. [The GDPR] is agnostic about which specific technology is used for the processing, but it introduces a mandatory obligation for data controllers to apply the principle of data protection by design, said Jan Philipp Albrecht, the member of the European Parliament who shepherded the GDPR through the legislative process. This means for example that the data subjects rights can be easily exercised, including the right to deletion of data when it is no longer needed. This is where blockchain applications will run into problems and will proba Continue reading >>

Gdpr And Blockchain: Is The New Eu Data Protection Regulation A Threat Or An Incentive?

Gdpr And Blockchain: Is The New Eu Data Protection Regulation A Threat Or An Incentive?

GDPR and Blockchain: Is the New EU Data Protection Regulation a Threat or an Incentive? New European data protection regulation to trigger even more blockchain innovation. The General Data Protection Regulation (GDPR) , a sweeping and stringent European Union (EU) wide legal framework for personal data privacy, became effective on May 25. Ready or not, this framework is going to drastically transform the business of any digital venture. The International Association of Privacy Professionals (IAPP) forecast that at least 75,000 privacy jobs will be created as a result, and that Fortune's Global 500 companies will spend close to $8 bln in order to ensure they are compliant with the GDPR . But what does this mean for the blockchain? The GDPRs goals are: to create a uniform data regulation framework within Europe, and to strengthen individuals control over the storage and use of their personal data. It was adopted in 2016 , and after a two-year transition period, is now in force. The GDPR introduces new procedural and organizational obligations for "data processors" - including corporate as well as public entities, and gives more rights to data subjects - the term it uses for individuals. Public and private organizations, when left to themselves, tend to accumulate data even before knowing what they will do with it, sort of "gold rush" in personal data acquisition. The GDPR goes against this habit by specifying that data processors should not collect data beyond what is directly useful to their immediate interaction with consumers. In effect, the data harvest should be adequate, relevant and limited to the minimum necessary in relation to the purposes for which they are processed (Article 39 of the GDPR). Besides setting out what is or isnt allowed, the GDPR also specifies Continue reading >>

Gdpr Vs Blockchain: Technology Vs The Law

Gdpr Vs Blockchain: Technology Vs The Law

One of the biggest impacts that GDPR will have for consumers (citizens of countries that comply with GDPR, at least) is the right to be forgotten. A person can request that they be removed from a record. What if the record is part of a blockchain? This poses a challenge for blockchain implementations. Blockchains are designed to last forever. Each block has a hash based on its contents, and carries the hash of its predecessor. So when you look at a block on a blockchain, you can trace the block back through its predecessors to the founding block. Changing the contents of a block changes the blocks hash. If a blocks hash changes, the successor blocks will no longer reference it. They point to the original, valid, block. Rebuilding the chain with the replacement block means the hash for each successive block will have to be recalculated, which is an enormous computational task. In Figure 1, we see part of a blockchain showing three blocks. Block 36 contains the hash for block 35, some data (DATA yyyyy) and its own brand new hash (HASH 36). Note that some of the data may include the identity of the creator of that data the miner who computed the hash. If the data changes, the value of HASH 36 will change. For a distributed blockchain, the problem of modifying the chain becomes vastly more difficult. Not only will the hash for the changed block and all successive blocks have to be recalculated, but each copy of the blockchain will have to be replaced, on each machine it resides. Anyone who has ever sent an erroneous email to a group knows how hard it is to recall all those copies. Since blockchains are effectively indelible, any record containing personal information about an individual cannot be altered. Further, any individual who creates a block on a blockchain is affil Continue reading >>

How To Deploy Blockchain Tech For Gdpr Compliance

How To Deploy Blockchain Tech For Gdpr Compliance

How to deploy blockchain tech for GDPR compliance As companies look for solutions, Armin Ebrahimi, CEO of ShoCard, shares with The Paypers ways to deploy blockchain to enable businesses to meet GDPR compliance. Enforcement of the EUs General Data Protection Regulation (GDPR) is approaching quickly. On May 25, 2018, any company, foreign or domestic, that processes the personal data of EU inhabitants is expected to have solutions in place to meet the regulations requirements. The GDPR is designed to give prospects, customers, contractors, employees, etc., more power over their data and less power to the organizations that collect and use it for monetary gain. However, decentralized solutions based on blockchain technology are innovating how data is collected, stored and distributed, and these solutions provide options not available through traditional data protection methods. Blockchain technology enables the actualization of completely digital identities, allowing for the concept of Bring Your Own ID (BYOID) to gain traction and adoption. Staring down the new GDPR requirements and the social and business pressures to not become the next Equifax, companies are searching for innovative solutions to put themselves ahead of the curve when it comes to protecting the data of their clients, customers and users. The public is also putting much of this pressure on enterprises, searching for a way to gain more control over their own data. If a solution that allows them to control their own data is available, why should they entrust its protection to companies vulnerable to hacks? A blockchain identity management (IM) system, uses public/private key encryption and data hashing to safely verify data via the blockchain. A persons identity and data are stored on their device, and the Continue reading >>

General Data Protection Regulation And Blockchain Technology

General Data Protection Regulation And Blockchain Technology

General Data Protection Regulation and Blockchain Technology General Data Protection Regulation and Blockchain Technology In the fourth blog post by Austrian law firm Stadler Vlkel Arthur Stadler and Sarah Pichler focus on the General Data Protection Regulation (GDPR) and Blockchain Technology. General Data Protection Regulation and Blockchain Technology The most important reason for the interest in Blockchain and the latest discussions about its potential areas of application are the positive attributes linked to its mode of operation: security, anonymity and data integrity, without any third party serving as an authority and being in control of the transactions. Blockchains thus are not only decentralized, but based on distributed ledgers. Data integrity is ensured by the creation of new blocks in a consensus procedure, meaning that each subsequent block contains a cryptographic image of the previous block. Each block therefore consists of multiple data points. This also leads to the fact that data cannot be manipulated or deleted once it is written, entered into the block and linked to the previously written block. Transparency in all aspects is given, as the public can see all transactions, but allegedly without information linking these transactions to identities. Personal Data in Blockchains Anonymous Content? From a legal point of view, many aspects have to be considered when applying effective legal frameworks to rather new technical systems like Blockchain national legislation as well as EU law have to be taken into account. One of the most recent Acts on EU level creating implementation requirements of great impact for companies is the Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 (General Data Protection Regulation, Continue reading >>

Eu Privacy Law Ready To Collide With Blockchain Tech

Eu Privacy Law Ready To Collide With Blockchain Tech

EU Privacy Law Ready To Collide With Blockchain Tech If you have heard the word cryptocurrency , then you surely know the concept of Blockchain technology as well. Blockchain technology is in conflict with EU data protection legislation. The General Data Protection Law stated that, Users should be having the rights of updating or deleting their data in the blockchain. In a blockchain personal data is stored and then transferred to many other users in the form of series of transaction. This data is, however, unchangeable, which also ensures the reliability or accuracy of the record. Private Blockchain: A restricted team handles this, for example, a Ripple block is particularly designed to facilitate funds between financial service providers. Public Blockchain: This is not actually under control, for example, Ethereum or Bitcoin. Technically, you can overwrite the data stored in the blocks, but only when the majority of the network node agrees to generate a new line. It is relatively easy in a private blockchain, but in public blockchain this is an infrequent and seismic event. What is GDPR Conflict with Blockchain System? According to Jan Philip Albrecht, Member of the European Parliament GDPR has some doubts regarding blockchain technology. Adding on, he said, This is where blockchain applications will run into problems and will probably not be GDPR compliant. Its vital to mention here that, the sanctions which ignore or violate GDPR law, faces up to 20 million Euros fines or 4% of global revenues. John Mathews Argument, Chief Financial Officer of Bitnation He said in Defense of blockchain: Changing data does not work in a blockchain. He further elaborated that GDPR was present under the speculation that one would have a centralized service which controls the authority Continue reading >>

Achieving Gdpr Compliance And Data Privacy Using Blockchain Technology

Achieving Gdpr Compliance And Data Privacy Using Blockchain Technology

Achieving GDPR compliance and data privacy using blockchain technology CxOs, data engineers, programmers, and software developers A basic understanding of blockchain technology Learn how to use open source blockchain technologies such as Hyperledger to implement the European Union's General Data Protection Regulation (GDPR) regulation The General Data Protection Regulation (GDPR) is an EU regulation acting as a one-stop shop for all data privacy rules across the EU. GDPR governs all global entities dealing with EU citizens data in any form or shape. Ajay Mothukuri, Arunkumar Ramanatha, and Vijay Srinivas Agneeswaran explain how to use open source blockchain technologies such as Hyperledger to implement GDPR. GDPR aims to ensure the data privacy of EU citizens through a single set of rules for data protection, increased responsibility and accountability for those entities processing personal data, required notification of any data breaches in stipulated timelines, the pseudonymization of personal data in such a way that resulting data cannot be attributed to a specific data subject without use of additional nonpersonal information, more accessible personal data, the ability to transfer personal data from one service provider to another easily (data portability), a right to be forgotten, and data protection by design and by default. These rules apply to all foreign companies and entities that are active in EU market and offer their services to EU citizens, and there are heavy sanctions for any violations, that can total up to 4% of annual global turnover. Blockchain technologies can help companies fall in line with GDPR directives. Pseudonymization is built into the blockchain, as all the data in a blockchain is encrypted and undersigned with the users digital signatures Continue reading >>

Gdpr Compliance And Blockchain

Gdpr Compliance And Blockchain

How are two of the biggest technology issues of today linked? There are concerns that the now-active General Data Protection Regulation ( GDPR ) and distributed ledger technology are incompatible, most likely stemming from the notion that, by virtue of a blockchains inherent public and transparent nature, it is far too accessible to be safe for enterprise use. This is not actually the case. While transactions can be seen occurring across the network, the data in and of itself is not stored on the blockchain instead, a cryptographic hash is derived from the data and is then uploaded. What is GDPR? Everything you need to know Blockchain-based platforms enable the storage and provenance of data to be conducted in an anonymous fashion protocols can be built in such a way that allows for the destruction of certain data sets, in compliance with GDPR requirements. Contrary to popular belief, and given that blockchain solutions will use such a mechanism, GDPR will see increased adoption of blockchain tech. If anything, GDPR has prompted a renewed understanding of the importance of secure data storage. It is doubtful that the legislation will interfere with existing or future blockchain systems (provided, of course, that these are truly distributed), which aim to put information back in the control of its owners. First passed into law in April of 2016, the EU GDPR regulations came into effect on May 25th, 2018. As the EUs response to an increasingly theft-prone personal data environment, these regulations aim to protect consumer data integrity and enforce enterprise security measures focused on such. One of the defining features of the new regulations is that of privacy by design. Rather than building a system and adding privacy and security as a secondary concern, the EU stipu Continue reading >>

Blockchains And Personal Data Protection Regulations Explained

Blockchains And Personal Data Protection Regulations Explained

Blockchains and Personal Data Protection Regulations Explained Apr 26, 2017 at 13:30 UTC|UpdatedApr 26, 2017 at 16:34 UTC Jacek Czarnecki is an attorney at Warsaw-based law firm Wardynski & Partners, where he specializes in areas including fintech, digital currencies and blockchain. In this opinion piece, Czarnecki discusses data protection laws in the EU,outlining in an easy-to-read overview how they present both challenges and opportunities for industry innovators. Not a day goes by whenwe don't hear about a new application for blockchain technology. A cryptographically secure distributed ledger (secured by means of member consensus )is turning out to be the solution for many problems and inefficiencies in the world around us. And this isn't just about technological improvements or the reconstruction of business models: different blockchain use cases will leave a mark on the economy, society and, perhaps, also on politics. Blockchains - especially public ones such as bitcoin or ethereum - break many paradigms, including legal ones. We are thus entering an interesting transition period when successive applications of this technology will encounter legal norms not always adapted to the new reality. One of the more interesting examplesto look at is personal data protection. Legal regulations protecting personal data are of great importance in many areas where blockchains already exist: finance, healthcare, electronic identification systems, etc. And whilethe application of existingdata protection regulations in blockchain technology will cause issues, there are solutions. First things first,why are blockchains a challenge for the protection of personal data? There are three main reasons: Blockchains are decentralized and distributed. It is virtually impossible to identi Continue reading >>

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