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Blockchain and GDPR — Frenemies?
Emerging technologies and regulations have the power to create, shape, or kill businesses. The European Union's (EU) General Data Protection Regulation (GDPR) — a privacy regulation with worldwide implications, and blockchain technology — such as Distributed Ledger Technologies (DLT), each embody forces that have the potential for such profound impact. Taken in tandem, the GDPR and blockchain highlight the possibilities and pitfalls of disruption and the importance of cross-organizational collaboration in compliance and innovation initiatives.
In a nutshell, GDPR mandates that individuals have access and control over the use and maintenance of their data in certain circumstances, while the foundation of blockchain relies on the immutability of data. On the surface, these concepts seem in direct conflict with each other. This article discusses the points where GDPR and blockchain share common ground, where conflicts may exist and possible approaches for mitigating those conflicts.
Hype Check
With the possible exception of AI-powered robot lawyers, no topics have dominated the legal technology hype cycle more than GDPR and blockchain have in the past few years. This has been for good reason.
The sweeping requirements of GDPR compliance against the backdrop of an increasingly interconnected and online world have forced companies everywhere to focus attention and resources on redefining their information governance and security programs, as well as their relationships with customers and technology providers. Corporations are spending billions of dollars on compliance initiatives and still nearly half of corporations did not expect to be fully compliant with the regulation when it became enforceable on May 25, 2018.
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