Blockchain technology has gained a lot of traction in recent years, but blockchain technology and personal privacy and information security laws have developed separately. Stricter global data protection norms with greatly increased penalties have compelled businesses to reevaluate their privacy practices. There exists a lot of ambiguity and complexity right now for corporations in proceeding with blockchain technology and associated personnel in relation to data privacy requirements. If you are worried about your data security then blockchain could help. In this blog topic, we would uncover how blockchain supports data privacy and how concerns relating to privacy can be resolved effectively.
Blockchain technology helps safeguard the data from manipulation and thus increases data security. The data is saved in a redundant and distributed storage of multiple nodes in the blockchain, which is transparent and immutable. It makes it essential for a blockchain project to examine the data for storage and whether we can consider that data as personal data.
What is data privacy?
Data (or information) privacy deals with properly handling sensitive data such as personal information, credentials, passwords, identifications, etc. It regulates how the personal data crosses different stages to ensure proper data handling.
Since data is an essential asset of a business, the companies use it to find important metrics for scaling the businesses. Hence, it becomes necessary for companies to follow the below parameters.
- A business must meet legal responsibilities regarding personal data collection, storage, and process.
- Companies must follow the legal parameters to ensure data privacy in the blockchain as outlined in specific legislation.
- Companies must identify defined stakeholders for fixing responsibility, liability, and determination of rights.