Public, permissionless blockchains and the EU’s GDPR: The coming clash between technology and the law?

From a blog by VALID advisor Christian Sillaber, Senior Researcher on IT-Security

The European Union’s General Data Protection Regulation (GDPR) came into effect on May 25, 2018. It is already clear that the new law, which is in many respects ground-breaking, is struggling to keep up with the pace of technological change. If this issue is not addressed, the GDPR will undermine citizens’ ability to use blockchain.

The core of the problem is that, in addition to the explicit declaration of the rights of the data subject (access to data, data portability, right to erasure, right to correction etc.), the GDPR also mandates that data controllers and processors abide by the principle of “data protection by design and default”. This means designing services and software with privacy as a foundational consideration rather than as an afterthought or add-on. The implied design requirements and goals seem to be at odds with the fundamental ideas behind blockchain and other emerging distributed ledger technologies — in particular transparency, immutability and egalitarian access to the data.

The GDPR applies to the processing of personal data (Art. 2 para. 1 GDPR), that is, any information relating to an identified or — by the use of additional information — identifiable person (Art. 4 para. 1 GDPR). Although the cryptographic identities used by most participants of public permissionless distributed ledger systems are not directly linked to identified natural persons, it is — under certain circumstances — possible to identify participants through additional information (e.g. correlation of the person’s activities with third party data). Therefore, data stored and processed in most public, permissionless blockchain systems should be considered personal data. Little doubt also remains that territorial applicability can also be established for most distributed ledger systems, as they are either (partially) operated from within the EU or are actively used to process data from data subjects located in the EU.

Public, permissionless distributed ledger systems enable their participants to maintain a public database without the need for a trusted central authority or mutual trust. Any participant may enter or leave the system at any time and, therefore, access the data of the ledger at any time.


Image Credit:  Valid

News This Week

The Theranos deception

Elizabeth Holmes was just 19 years old when she dropped out of Stanford University with a dream of creating a company that would revolutionize blood testing. As we first reported last May, Holmes founded [...]

LAUNCH.nano: MIT.nano Grand Opening celebration, Oct. 4, 2018

After six years of design and construction, MIT.nano will celebrate the completion of the facility at a Grand Opening Event on Oct. 4. Please join us for a day of activities including a symposium [...]

Scientists Use Light to Control Nanobots

If nanotechnology has one clear image in the collective pop-culture consciousness, it is that of nanorobots, nanoscale machines capable of performing mechanical functions. When considering the potential of such a technology, the more astute may [...]

10 Steps to Adopting Artificial Intelligence in Your Business

Artificial intelligence (AI) is clearly a growing force in the technology industry. Chatbots and virtual assistants are becoming a key part of new products, and robots are taking center stage at conferences and showing [...]

Arguing the Pros and Cons of Artificial Intelligence in Healthcare

In what seems like the blink of an eye, mentions of artificial intelligence have become ubiquitous in the healthcare industry. From deep learning algorithms that can read CT scans faster than humans to natural [...]

International Conference On Nanomedicine And Nanobiotechnology – ICONAN Rome 2018

The International Conference On Nanomedicine And Nanobiotechnology is an annual event. It hosts high-profile plenary speakers, world-class researchers, oral and poster presentations, workshops, sponsor exhibits and afterworks. It is a great opportunity to share [...]

Australian Scientists Develop Nanotechnology To Purify Water

SYDNEY, (UrduPoint / Pakistan Point News, app - 14th Sep, 2018 ) :Scientists in Australia have developed a ground-breaking new way to strip impurities from waste water, with the research set to have massive [...]

A new scientific field: Quantum metamaterials

Two teams of scientists from the Technion-Israel Institute of Technology have collaborated to conduct groundbreaking research leading to the development of a new and innovative scientific field: Quantum Metamaterials. The findings are presented [...]


Leave A Comment