The European Union (EU) regulators have published new directives on blockchain technology with regard to the processing of personal data.
In a new report, the European Data Protection Board (EDPB) indicates that, in order to correctly comply with the General Data Protection Regulations (GDPR) of the EU, “evaluations” may have to be carried out on how blockchains record the data.
According to the EDPB, the evaluation must answer the following questions:
“Will the blockchain data contain personal data? …
II If so, why is a blockchain necessary for this treatment? (What is the justification for this choice?
What are the alternatives?)
III. What type of blockchain should be used? (Is a private blockchain sufficient?
Is blockchain used? Is “zero knowledge” architecture possible?)
IV. What technical and organizational measures are used? (Will personal data be stored or out of chain? Are technologies improving confidentiality used-if not, why?)
The EDPB says that blockchains are no exception to the RGPD laws and should take into account how they process certain data. To comply with the GDPR, the regulator claims that block channels may have to be completely deleted if the deletion of data relevant to the GDPR is not already taken into account when the network is created.
“Personal data must be erased once the processing objectives have been achieved and everything
The retention regulation periods have expired in order to comply with the storage principle
limitation.
Deleting data on an individual level in a blockchain can be difficult and requires a to-hoc
Engineering architectures. When the deletion has not been taken into account by design, this may require
Deletion of the whole blockchain. »»
In an article on LinkedIn, James Smith, special projects, led to the Ethereum Foundation, said that the new EU directives could threaten the existence of public blockchains.
“What it means for Ethereum and Web3:
The very architecture of public blockchains like Ethereum is disputed.
Without a significant repression, we are faced with a regulatory framework which fundamentally disregards decentralized technology.
These are not only a question of headache – it is to know if public blockchains can legally operate in Europe. »»
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