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Blockchain technology and the GDPR

A blockchain is a decentralized database that allows transactions to be tracked securely and transparently. The technology is already being used successfully in many areas and also has the potential to support the requirements of the General Data Protection Regulation (GDPR). However, there are also some challenges associated with blockchain in terms of the GDPR. One of these challenges is the deletion of data. In a blockchain, all transactions are stored persistently and cannot be easily deleted. This means that companies that want to or must comply with the GDPR must take special care to ensure that all data that should (or must) be deleted is actually deleted. Another challenge is to ensure that all users of the company have given their consent for their data to be processed using blockchain. This is especially important because in a blockchain all transactions are transparent and every user has the possibility to view all data. To ensure that all users of the blockchain have given their consent, companies must take appropriate steps to ensure that each user has given their consent at the time of registration or use. Overall, blockchain can be a useful tool to support the GDPR. However, there are also some challenges to consider. Companies need to carefully plan and assess whether blockchain is fit for purpose and whether it is able to meet all the requirements of the GDPR.

Deletion of data in a blockchain

In a blockchain, all data is stored permanently and cannot be deleted. However, some platforms allow data to be masked or anonymized so that it is no longer identifiable. This process is referred to as “data protection through technology” (DPT). This allows companies to comply with the GDPR without having to completely delete their customers’ data. However, this also means that it is difficult to develop a blockchain-based solution for handling personal data that meets the requirements of the GDPR. Therefore, it is important that companies develop an effective system to protect and manage their user data in compliance with the GDPR and other data protection laws. Otherwise, it must be ensured that no personal data is stored on the blockchain at all….

One of the most commonly used tools for processing personal data in the blockchain is the “hash function.” This tool can be used to encrypt personal information, making it unreadable to unauthorized people. It ensures that sensitive or private information can be stored on the blockchain while providing greater security. Organizations can also implement appropriate protocols so that they must follow certain rules before deleting or modifying any personally identifiable records – for example, tracking the origin of the record and any approval processes for third-party change requests. In this way, it can be ensured that all processing operations are legally compliant and the user’s privacy remains protected. In addition, it is also important to note that if records are deleted, the transaction history must still exist for those who participated in that transaction – meaning that some portions of blockchain records may need to continue to exist in order to provide evidence of previous transactions. In summary, then: A blockchain offers strong advantages for companies with regard to the protection of personal data records – but there are various technical challenges in implementing effective data protection in this area with corresponding legal requirements of the GDPR, in particular an efficient deletion system for personal data.

How can companies reconcile blockchain and the GDPR?

Blockchain is a valuable tool that can help companies control and track data. Together with the GDPR, companies can ensure the security of their systems and compliance with legal requirements. But how can companies exploit this potential without violating data protection regulations? Fortunately, there are some sensible solutions to reconcile blockchain and the GDPR. First, companies should follow the GDPR guidelines and ensure that all personal data is stored in accordance with applicable laws and regulations. This means that companies must also take certain security measures when using blockchain to ensure the protection of personal data. In addition, companies should verify whether the blockchain platform they are using has a record deletion feature or whether it is necessary to provide dedicated tools for this task. Companies should also note that ensuring that all employees are up to date and properly informed is critical to the success of data protection. Therefore, companies should provide regular training programs to enhance and update their knowledge on how to use blockchain technology. This makes it possible to ensure that all employees are aware of and follow the latest best practices in handling personal data storage. In addition, it is important for companies to conduct regular audits of their blockchain infrastructure. This can help identify if certain components are no longer needed or if records need to be deleted for GDPR compliance reasons. These audits also enable companies to identify potentially unsafe components in good time and take legal action if necessary.

Can a user waive his or her right to delete?

This is quite controversial. This is not regulated by law, so it is probably at least a clear consent of the user possible, which is why it is probably difficult to implement within GTC, which under German law does not have to be agreed to, but which become valid when a user could reasonably have perceived them. It is true that corporate processes are also conceivable that make it possible to waive the user’s right to deletion. However, if a company thereby forgoes the development of technology for deletion, this means a permanent obligation to protect this data and a business risk that should certainly not be underestimated.

Conclusion: Blockchain technology and the GDPR – an unsolvable problem?

Blockchain technology and the GDPR are in a particularly difficult area of tension. On the one hand, it is important that companies comply with the principles of the GDPR and ensure that sensitive data is not misused. On the other hand, companies need to be able to take advantage of blockchain to increase the security of their data and transactions. The good news is that technologies have been developed to reconcile the two fundamental principles. By using anonymization techniques, companies can process personal data in a way that allows them to leverage the security of a blockchain without violating the GDPR.

It is therefore important for companies to familiarize themselves with the latest developments in blockchain technology and take all necessary measures to ensure that it meets certain data protection requirements.

Marian Härtel

Marian Härtel

Marian Härtel is a lawyer and entrepreneur specializing in copyright law, competition law and IT/IP law, with a focus on games, esports, media and blockchain.

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