Can Blockchain Help Enterprises Navigate GDPR Headaches?

Can Blockchain Help Enterprises Navigate GDPR Headaches?

User privateness on-line is among the greatest debates of recent occasions, and one which’s extremely complicated from any perspective. It’s now eight years since Edward Snowden blew the doorways off the state of mass surveillance by huge tech corporations, forcing the world to get up to the truth that our knowledge is harvested and used way more extensively than we thought.

Although the US and British governments have been aware of this truth, many European international locations weren’t. The web consequence was the General Data Protection Regulation, far-reaching laws that places obligations onto each enterprise dealing with any knowledge for EU residents, no matter the place they’re on this planet.

This yr will mark three years because the GDPR turned efficient, and it’s exhausting to say whether or not or not it has achieved its meant targets. From the massive tech perspective, there have been some wins for customers.

A living proof is the current information headlines concerning WhatsApp, which introduced modifications to its guidelines requiring that customers comply with their knowledge being shared with its proprietor, Facebook. The transfer brought on an uproar on social media and resulted within the Turkish authorities launching an antitrust investigation. However, EU customers are exempt from the modifications, due to the protections afforded by the GDPR.

However, it looks as if a comparatively minor win. Privacy campaigners level out that the cookie banners that every one Europeans should now navigate are doing little to assist forestall customers from leaving a path of knowledge on-line.

If Users Have It Bad, Do Businesses Have It Worse?

Meanwhile, the regulation has created a large burden for companies, lots of which have incurred excessive compliance prices. A 2020 report discovered that corporations have spent a median of $1.three million to fulfill their GDPR obligations, however fewer than 50% had achieved full compliance.

Read More:  Bitcoin Faces Another Rejection And It’s Vulnerable to a Drop Below $9K

It’s a merciless irony that many companies are sometimes required to maintain consumer knowledge by regulation as a part of their each day operations. For occasion, renting a automotive requires displaying your license, or staying in a lodge includes handing over a passport. The GDPR governs this knowledge for all companies transacting with EU residents. Even small companies primarily based outdoors the EU face a compliance burden in the event that they’re providing providers to these throughout the EU.

According to Lone Fønss Schrøder, CEO of Concordium, blockchain applied sciences might present a much-needed reply to the conundrum between consumer privateness and enterprise obligations beneath the GDPR. In a current interview, she advised Insider Monkey that “utilizing zero-knowledge proofs as we do in our Global Identity app, [businesses] can ease GDPR points.” How does it work, and will it actually assist companies overcome the demanding challenges of the GDPR?

A Self-Sovereign Identity Approach

Over current years, the concept of utilizing blockchain as a platform for self-sovereign identification has been mentioned typically. The similar know-how that we use to safe and spend Bitcoin is also utilized to non-public knowledge. Users might decrypt any knowledge of their particular person wallets utilizing a non-public key, that means they determine who will get entry to their data and for what goal it may be used.

Innovator-in-chief Elon Musk has been vocal in his help for this type of method. At the Axel Springer Awards in December, the place he mentioned the hotly anticipated Starship on Mars challenge, he acknowledged his beliefs that everybody ought to personal their knowledge and the way it’s utilized in functions, together with synthetic intelligence.

Read More:  Federal Court Rejects Motion Filed by Crypto Developer Virgil Griffith to Dismiss Charges on Aiding North Korea

Concordium has taken this self-sovereign identification method and baked it into its platform. Users who need to transact in Concordium-based functions are required to interact with a real-life identification service supplier, who verifies their ID off-chain. The supplier then uploads a zero-knowledge proof to the Concordium platform, which serves as an assurance of identification to anybody transacting with that particular person. An identification might even have a number of varieties of ID documentation or attributes related to it.

For instance, a consumer might have their passport and journey vaccination standing verified in order that that they may take a world flight to a rustic requiring immunity from Covid-19, yellow fever, or different transmissible ailments. The airline wouldn’t have to see their paperwork, however they’d be capable to confirm they’re legitimate through the zero-knowledge proof on the Concordium blockchain. They might additionally add paperwork akin to a rental settlement or utility invoice to behave as proof of residence for opening financial institution accounts or making use of for credit score.

Assuring Compliance

The platform additionally operates a failsafe to assist shield companies from a compliance perspective. For occasion, if the monetary authorities issued a authorized order to determine somebody who had obtained banking providers or credit score, the corporate might request the providers of one in every of Concordium’s “anonymity revokers.” Upon verifying the authorized request, this occasion can decrypt the on-chain proof and problem an instruction to the identification supplier to problem the figuring out paperwork. Neither occasion can determine anybody by themselves, that means customers can transact in privateness beneath most traditional circumstances.

Read More:  Simplex and Skrill Broaden Cryptocurrency Convenience by Launching New Onramp Solutions

For enterprises, Concordium’s self-sovereign method provides the alluring chance that they may function with out even needing to take custody of delicate consumer knowledge. Doing so would relieve them of lots of the arduous GDPR obligations.

The query is, will enterprises be keen to undertake such know-how? Lone Fønss Schrøder believes there’s a aggressive edge to be gained for first movers, declaring that “massive enterprises ought to develop a sense of worry that they may miss out.”

She additionally speaks of her personal prolonged management profession throughout a mess of business sectors, together with banking, delivery, and automotive, to spotlight that every one of us are at all times on a studying curve. She talks of how “leaders should be daring in embracing new improvements” and inspiring these in enterprise to “by no means be afraid to leap into one thing you won’t perceive on the floor.”

It’s truthful to say she resides her personal recommendation, main the launch of a platform that’s implementing a completely new method to the concept of digital identification and knowledge privateness. Concordium launches on mainnet within the coming months, so it is going to be attention-grabbing to see which huge companies are among the many first to step into this area.

Image supply:


Add comment