GPDR Game Changer for Cryptocurrencies

From June 2018 companies must follow a set of guidelines set by the European Union.

The European Union General Data Protection Regulation (GDPR) replaces the Data Protection Directive 95/46/EC and was designed to harmonize data privacy laws across Europe, to protect and empower all citizens data privacy and to reshape the way organizations across the region approach data privacy.

The key articles of the GDPR, as well as information on its business impact, can be found throughout this site https://www.eugdpr.org/

Any platform that uses a distributed ledger to store user data such as those crypto-currencies using blockchain technology may need to implement new technologies as under these new laws and guidelines. Each user has the right to be forgotten, meaning all user data should be able to be forgotten.

A blockchain is, as it’s name suggests is a linked set of records called blocks that grows as new data is added to the system.
A “Block” contains a hashed key which links it to the previous block, a timestamp for when it was altered, and transaction data.

By design, a blockchain is inherently immutable — once recorded, data on the blockchain cannot be changed retroactively without the alteration of all subsequent blocks and a collusion of the network majority.

Any company in breach of these new standards will face fines of 4% of your company’s revenue, up to 20 Million Euros.

Platforms that hold user data in any form must assure there is a way for that data to be deleted. Let me underline this again: it means a big no-no to storing any user data on a ledger from where that data cannot be deleted.