Decentralizing Privacy : Blockchain Technology as a Solution

Through this paper I have tried to demonstrate a legal validity for blockchain technology under the GDPR as well as the CCPA. The value in blockchain technology is undeniable. It promotes transactional efficiency, and contributes towards transparency, neutrality and security in the digital world. It is also clear that these benefits come at a cost. They have fueled legal tensions that question the validity of their operation entirely (the recent events have certainly not helped in this regard). The challenge is much more significant in the original permissionless blockchain architecture, but the possibility of a permissioned chain does serve as an alternative solution to mitigate this challenge while continuing to support technological innovation.As far as the GDPR is concerned, the consumer is the EU citizen the regulation aims to protect. What should not occur is thorough dismissal of the technology pursuant to stringent and traditional interpretation of the GDPR. This is disproportionate and contrary to business and technological progression.The GDPR or the CCPA does not outlaw blockchain technology. Nor does it make it illegal to buy, sell and trade cryptocurrency. Instead, businesses and big corporations can implement, develop and adapt blockchain technology to innovate. However, in order to do so, it seems prudent to develop such in a permissioned (where responsibility and specific roles can be implemented) manner.Moreover, as the CCPA and the GDPR have a private right of action for breaches, a blockchain’s ability to comply with the CCPA or GDPR will also affect its ability to build trust with consumers. Consumers wish to store their data on secure places; however, they may be sensitive with respect to their personal information and blockchains that can avoid civil penalties and private right of actions will likely save plenty of money and get additional customers. Therefore, complying with the CCPA and the GDPR will be good for businesses who implement blockchain technologies