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Bitcoins / Breaking News / Crypto.IQ

Coin Center Advises Bitcoin Should Be Exempted From GDPR

The General Data Protection Regulation or the GDPR is a data protection law which is going to come into effect with immediacy on the 25th of May this year. This is passed by the EU and because of it, all of the 28 countries within the EU are going to impose newer rules which will concern the control and processing of personal data. The GDPR is going to effectively extend the EU residents a protection of their personal data and give them more rights in a bid to give them back control over their personal information.

The GDPR consists of several items including increased penalties, notification of breaches in data, more priority on responsibly handling data that’s travelling out of EU, and the necessity to make use of opt in consent. Once the GDPR comes into effect, it will change the very way that companies big and small have been operating, and the way they have been collecting, storing, and using user data.

The GDPR & Blockchain

The GDPR is going to apply to all organizations and applications which hold and process data of EU citizens regardless of their location in the world. Since blockchain networks also make use of the storage of personal data in themselves, the new technology could very well fall under the new data protection law being introduced by the EU. The only problem is that blockchain technology might not be able to cope with this change in regulatory proceedings for data protection that the EU is going to introduce.

Two years after it was initially drafted up, the GDPR is going to take place, and with its implementation, any EU citizen that requests for their personal data to be given back under their control and deleted from the records of the company that’s holding it, the company will have no other option but to comply.

The Problem Pointed Out By Coin Center

The Washington, DC based company called Coin Center has made note of the implications of the new law which will come into effect next month and has pointed out an important thing. The change in regulation is not something that blockchain technology is necessarily going to be able to comply with. The complete deletion of data which is stored on the blockchain network is not an easy eat to accomplish.

One of the most important aspects of blockchain technology is the fact that it is an immutable digital ledger. Any information stored on it being deleted from any point in the blockchain could result in a chain reaction affecting all of the data on the blockchain network beyond that point.

It is in the nature of blockchain networks to record data permanently so that the whole chain of transactions is transparent and ensures there are no false transactions. By changing the data on the blockchain network, the whole system that tracks payments is going to become compromised.

In Conclusion

With all things considered, blockchain technology can be developed further to make sure that the personal data stored on the digital ledger system is made anonymous. This could ensure that the blockchain networks are no longer going to be susceptible to be targeted by the effects of the GDPR. Another manner how a resolution can be reached in the matter is that the EU judges could possibly consider exempting blockchain technology from the effects of the GDPR. There is only one way in which the possibly chaotic problem can be taken care of before it happens – either the blockchain technology has to make some changes within itself to take it out of the firing line of the GDPR, or the EU judges have to make blockchain technology an exemption from the GDPR.

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