Several data violations, like the Cambridge Analytica scandal, have brought forth questions regarding how companies and governments should deal with the data entrusted to them, and they have also increased the search for the development of new technologies to preserve the privacy of companies and users.
Consequently, countries and regulators have rushed to set new compliance requirements to deal with user privacy and data collection — like the General Data Protection Regulation in Europe or the General Data Protection Law in Brazil, to name a couple. Parallel to that, there has been a new trend to seek new technologies like blockchain to solve privacy problems.
In this regard, contrary to the initial perception of many, blockchain technology may not only be compatible with the GDPR but may also help increase privacy levels and data protection, and return the property of data back to the individuals. As such, blockchain technology can be used as a privacy tool. For that reason, many industry players have started competing for leadership in this area.
Blockchain technology as a solution
Blockchain technology allows a significant number of interactions to be codified and increases reliability, eliminating the political and business risks associated with the process managed by a central entity. Moreover, they reduce the need for traditional validators of authenticity (intermediates).
On top of blockchain architecture, it is possible to execute applications of different companies and even of several kinds together. That allows an extremely efficient and continuous interaction. An audit trail is now possible where any person can verify and ensure that the processing is correct.
However, when talking with companies regarding the creation of applications in blockchain, two main inquiries always come up: scalability and privacy.
If you wish to read more about scalability, you can find a complete analysis here.
Regarding privacy, there are already countless blockchain…