The General Data Protection Regulation comes into force in May 2018
By introducing a new law on May 25th in all EU countries, companies will be forced to erase all data they possess about any citizen of Europe if they ask for it.
The new law – the General Data Protection Regulation (GDPR) comes into force with the aim of protecting privacy and personal data and total information awareness, it is unquestionable that it will find itself in a disbalance with a blockchain system that is increasingly in use.
It is a system that primarily maintains a cryptocurrency,originaly created for bitcoin but is also in use in a more extensive range of applications for various purposes, along with those that are designed to preserve identity.
The blockchain is not convincing with GDPR
Oxford’s professor of law, Michele Finck, has expressed her concern about the future situation. Deleting and editing block data is not possible entirely. It is challenging to reconcile the functioning of the blockchain with the GDPR. This affects the performance metters
Changing information on the block does not change only its, but also the entire hush blockchain that pulls with it and all the following data and blocks. If you delete from one block, the accuracy of the data on the next blocks is changing, which leads to the crush of the entire system.
She mentioned that some projects already are considering introducing applications that will adapt to GDPR, but the problem is non-resilient in global, especially with “permissionless” blocks. This technology has a base in this system. The data are not predetermined for deletion and modification but are permanently recorded.
Many companies will be affected by the GDPR
If this new measure is necessary, it will hit many of large companies that have implemented new technology into their business.
Here we are not just talking about companies that deal with cryptocurrencies, but also those that use this system to modernizing land registries or to execute contracts; Only Ethereum has made more than 1000 applications. It will lead to inevitable app problems and poorly verify the legitimacy of applications that need to be built on the blockchain.