Blockchain technology,
as exemplified by Bitcoin, has transformed various sectors by offering
transparency, decentralization, and data integrity. However, its core features
– immutability, pseudonymity, and autonomy – present challenges under the EU
General Data Protection Regulation (GDPR), which prioritizes data minimization,
the right to be forgotten, and centralized oversight, among others.
This study examines
the conflicts between blockchain and GDPR, focusing on issues such assigning
data controller roles and the applicability of GDPR to decentralized systems.
It explores the tension between blockchain’s immutable nature and GDPR’s
erasure requirements, while proposing potential solutions, such as
pseudonymization, flexible interpretations of data deletion, and involving
centralized authorities in permissioned networks.
Ultimately, the
article advocates for a case-by-case approach to ensure GDPR compliance without
undermining blockchain’s core functionality. It emphasizes the need for
collaboration between the legal and technical fields to balance privacy rights
with the continued innovation of blockchain systems.