Blockchain technology has a dual impact on data privacy and GDPR compliance. On the one hand, it enhances security and transparency through encryption, decentralization, and immutable ledger technology. This protects data from unauthorized access and tampering, aligning with GDPR principles.

On the other hand, blockchain’s immutable nature challenges GDPR’s “right to erasure” and data minimization requirements. Additionally, obtaining explicit consent from data subjects and ensuring cross-border data transfer compliance can be complex in decentralized blockchain networks.

To address these challenges, privacy-by-design principles and privacy-enhancing technologies must be integrated into blockchain solutions. This includes utilizing zero-knowledge proofs, homomorphic encryption, and anonymization techniques to protect personal data while maintaining GDPR compliance. By prioritizing data protection and user consent, blockchain technology can support robust data privacy and GDPR compliance.