Blockchain and the European Union’s General Data Protection Regulation: from Conflict to “Peaceful” Coexistence?

Abstract

This article examines briefly regulatory challenges in the context of blockchain technology from the perspective of data protection law. Hence, a great attention will be given to the key provisions of the new EU General Data Protection Regulation (GDPR). The aim of this paper is to discuss the main tensions between data protection and the increasing use of blockchain technology. The study first describes some of the fundamental aspects and core elements of the blockchain technology and consequently provides a critical analysis of the often exaggerated benefits of blockchain technology. The paper outlines the GDPR’s application challenges within the decentralized network to reveal the data protection concerns that may arise through the blockchains’ application. In this regard, legal and technological issues raised by the blockchain-based system are discussed. The conclusion summarizes the main findings and underlines the important issues for further policy development in the area of data protection law triggered by the rapid technological development.

Keywords: Blockchain Technology, Data Protection, GDPR, Decentralization, Personal Data, Data Subject’s Rights

JEL Classification: K1, K2