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Blockchain: challenges and legal issues of new technology
Digital Transformation Day 2018, Antwerp
Buzzwords of 2018…
BLOCHCHAIN
GDPR
Advantages of blockchain technology
BC is a distributed P2P ledgers that makes it possible to share a record of
transaction with a great number of participants
Transactions cannot be manipulated, abused or changed
Each participant (node) has a full copy of the ledger
High level of data security
Transactions are recorded based on consensus model between participants
Cryptography is used for bot hidentity and integrity - PKI and hash
Advantages of blockchain technology
BC is a distributed P2P ledgers that makes it possible to share a record of
transaction with a great number of participants
Security
Simplicity
Trust
Possible legal issues and challenges related to
blockchain technology
Validity of contracts
Proof of relationship/contract
Both can be managed, especially in a B2B context
SLA /availability
Liability
The elephant in the room…
GDPR
A few basic principles of GDPR
Transparancy
Data Protection by design
Data minimisation
Accuracy
Limited retention time
Data security
Purpose limitation
Right to erasure
Right to be forgotten
Data storage within EU
Possible privacy issues in Blockchain
Distinction should probavbly be made between
Private BC (permission based) Public BC (permissionless)
Everyone can participate Control over participants ID
Everyone has acces Access and use management
No control over location of data Acceptance of ToU prior to access
Location of data can be managed
Inherent privacy issues in Blockchain
Data subjects rights (errasure, correction, right to be forgotten, …)
Data minimisation
Limited retention times
Applicable (data protection) laws (public vs. Private BC)
Purpose limitation
(Control over) data security (even if BC is in itself “secure”)
Accuracy of data and right of correction >< in principle, data in BC cannot be changed
Data export / Location of data storage (public vs. private BC)
Identity of data controller / data ownership
Inherent privacy issues in Blockchain
Consequence
Storing personal data on a BC is not an option under GDPR
The workaround
You store the personal data off-chain and store the reference to this data, along with a hash of
this data and other metadata (like claims and permissions about this data), on the blockchain.
Personal data is then send P2P between users
But
Loss of control over who accessed / stored / used personal data, since it is no longer in BC
Necessity to have P2P contact with all participants in the BC
Where Blockchain can be a helping hand
(technical) data security
Guaranteed quality of data / reliability of data / accuracy
= Data protection by design
How Blockchain could even be a tool to ensure GDPR
compliance
BC could be used to execute data subject’s rights
Right to acces
Right of correction
Data portability
+ could be used as part of accountability / documentation obligations under GDPR
Prepare for challenges
Blockchain WILL have its breakthrough within 2 to 3 years
Blockchain offers a great number of opportunities
Users / early adapter should however be very aware of possible legal
implications
Before all GDPR / data protection laws
Prepare for challenges
Detailed analyses of set up before getting started
What data?
Which participants?
Public or private?
Location of data?
Terms of Use for participants?
Applicable law
…
Sirius Legal
Media & advertisement law
IP law
Internet & e-commerce
Privacy & cookies
Gambling law
Travel & consumer protection
Commercial & contracts
Corporate - tax - labour - immo
bart@siriuslegal.be
www.siriuslegal.be
@BartVdBrande
Linkedin.com/in/bartvdb

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20180426 legal challenges related to blockchain technology

  • 1. Blockchain: challenges and legal issues of new technology Digital Transformation Day 2018, Antwerp
  • 3.
  • 4.
  • 5.
  • 6.
  • 7. Advantages of blockchain technology BC is a distributed P2P ledgers that makes it possible to share a record of transaction with a great number of participants Transactions cannot be manipulated, abused or changed Each participant (node) has a full copy of the ledger High level of data security Transactions are recorded based on consensus model between participants Cryptography is used for bot hidentity and integrity - PKI and hash
  • 8. Advantages of blockchain technology BC is a distributed P2P ledgers that makes it possible to share a record of transaction with a great number of participants Security Simplicity Trust
  • 9. Possible legal issues and challenges related to blockchain technology Validity of contracts Proof of relationship/contract Both can be managed, especially in a B2B context SLA /availability Liability The elephant in the room… GDPR
  • 10. A few basic principles of GDPR Transparancy Data Protection by design Data minimisation Accuracy Limited retention time Data security Purpose limitation Right to erasure Right to be forgotten Data storage within EU
  • 11. Possible privacy issues in Blockchain Distinction should probavbly be made between Private BC (permission based) Public BC (permissionless) Everyone can participate Control over participants ID Everyone has acces Access and use management No control over location of data Acceptance of ToU prior to access Location of data can be managed
  • 12. Inherent privacy issues in Blockchain Data subjects rights (errasure, correction, right to be forgotten, …) Data minimisation Limited retention times Applicable (data protection) laws (public vs. Private BC) Purpose limitation (Control over) data security (even if BC is in itself “secure”) Accuracy of data and right of correction >< in principle, data in BC cannot be changed Data export / Location of data storage (public vs. private BC) Identity of data controller / data ownership
  • 13. Inherent privacy issues in Blockchain Consequence Storing personal data on a BC is not an option under GDPR The workaround You store the personal data off-chain and store the reference to this data, along with a hash of this data and other metadata (like claims and permissions about this data), on the blockchain. Personal data is then send P2P between users But Loss of control over who accessed / stored / used personal data, since it is no longer in BC Necessity to have P2P contact with all participants in the BC
  • 14. Where Blockchain can be a helping hand (technical) data security Guaranteed quality of data / reliability of data / accuracy = Data protection by design
  • 15. How Blockchain could even be a tool to ensure GDPR compliance BC could be used to execute data subject’s rights Right to acces Right of correction Data portability + could be used as part of accountability / documentation obligations under GDPR
  • 16. Prepare for challenges Blockchain WILL have its breakthrough within 2 to 3 years Blockchain offers a great number of opportunities Users / early adapter should however be very aware of possible legal implications Before all GDPR / data protection laws
  • 17. Prepare for challenges Detailed analyses of set up before getting started What data? Which participants? Public or private? Location of data? Terms of Use for participants? Applicable law …
  • 18. Sirius Legal Media & advertisement law IP law Internet & e-commerce Privacy & cookies Gambling law Travel & consumer protection Commercial & contracts Corporate - tax - labour - immo bart@siriuslegal.be www.siriuslegal.be @BartVdBrande Linkedin.com/in/bartvdb