Blockchain: The Savior of Data Privacy?
Blockchain Technology stores information as a shared and continually reconciled database. This means that the information stored through blockchains are publicly accessible and easily verifiable. Therefore, there is no centralized version for a hacker to corrupt. While ensuring security, does this also increase privacy? Experts claim that even though it is theoretically possible, the practical probability is not guaranteed. This is because social platforms are used to share information and the use of technology to ensure privacy is reduced to the information shared by the individual. Moreover, though public blockchain transactions are pseudonymous and steps can be taken to hide identity, anonymity cannot be assured. Adding another layer of concern is the European Union’s General Data Protection Regulation (GDPR) which has been enforced from May this year.
Experts opine that instead of a being a concern, a blockchain-enabled GDPR compliance solution can increase security and privacy by enabling transparency GDPR stipulates such as fast and flexible access from individuals. Moreover, a properly architected blockchain GDPR solution enables data to be deleted, if required.
With a number of industries adopting the blockchain technology, the Accounting Blockchain Coalition has been founded to provide guidance and also act as a platform for knowledge-sharing. Additionally, to form a strategy to adapt this technology to the freight industry, the Blockchain in Transport Alliance was founded last year.
Although it gives hopes, a block-chain GDPR solution is still more fiction than reality. The infrastructure is limited to a point where it can be analyzed at the height of its functionality, regarding complex applications, and standardized operations. Only then can it be known if blockchain technology can become a savior of data privacy.