Regulators in the European Union (EU) have released new guidelines for blockchain technology, since it relates to the processing of personal data.
In a new report, the European Data Protection Board (EDPB) says that in order to keep the EU General Data Protection Regulation good, “evaluations” must be carried out on how Blockchains record data.
According to the EDPB, the evaluation must answer the following questions:
“Will the data on the blockchain contain personal information? …
Ii. If so, why is a blockchain needed for this processing? (What is the reason for this choice?
What are the alternatives?)
III. Which type of blockchain should be used? (Is a private blockchain sufficient? Can a permission
Blockchain are used? Is a ‘zero knowledge’ architecture possible?)
Iv. Which technical and organizational measures are used? (Personal data will be stored on or offchain? No privacy-improving technologies are not used, why?) “
The EDPB says that block chains are no exception to the GDPR laws and take into account how they process certain data. To comply with the GDPR, the regulator says that block chains may have to be completely removed if the removal of GDPR-relevant data has not been taken into account in the original creation of the network.
“Personal data must be deleted as soon as the purpose of the processing has been achieved and that
The regulations periods for retention have expired to comply with the storage principle
limit.
Data removal at an individual level in a blockchain can be a challenge and requires ad hoc
Engineered architectures. If design was not taken into account by the design, this may require
Removing the entire blockchain. “
In a message about LinkedIn, James Smith, special projects at the Ethereum Foundation, said that the new EU guidelines can threaten the existence of public block chains.
“What this means for Ethereum and Web3:
The architecture of public block chains such as Ethereum is challenged.
Without significant pushback we are confronted with a regulatory framework that fundamentally understands the decentralized technology.
This is not just about compliance headache – it is about whether public blockchains can work legally in Europe. “
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