Can Blockchain Be GDPR-Compliant? Europe Offers Tough Privacy Direction

The European Data Protection Board (EDPB) has issued new guidelines effective April 14, highlighting the inherent tension between blockchain technology and GDPR compliance. The decentralized and Immutable nature of blockchains poses significant challenges to personal data protection requirements.

Off-chain data storage emerges as a critical solution, with the EDPB recommending robust cryptographic techniques like encrypted storage and salted hashes to protect privacy. These measures aim to prevent personal data from being traced or misused while maintaining blockchain’s CORE functionality.

The guidelines mandate thorough Data Protection Impact Assessments for blockchain implementations, underscoring Europe’s strict approach to privacy in decentralized systems. This development could shape future blockchain architecture designs, particularly for projects handling EU citizen data.