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The EU has finally adopted an approved framework on how companies should handle user data. Although this is good news for people in general, I can also see it as a massive hit for so many altcoins.
Believe me when I say that there is a huge storm ahead.
GDPR – What’s Important to Keep
Many important rules must be respected by companies from June 2018. They will actively protect customers against theft and misuse of data (selling your data without your consent or creating terms and conditions). Complex agreements that most users do not understand). I advise you to read all this, especially if you (like me) work in the computer, are responsible for an IT department or have your own startup; but there is only one point that I believe to be the most destructive for many cryptocurrencies:
Yes, indeed, every user has the right to be forgotten, which means that all user data should be able to be permanently deleted. Let’s say that if I chose to delete my facebook account, everything I posted, commented on, liked, and so on. must disappear. This sounds simple when you own your own infrastructure, but due to the immutability of one of the most important properties of blockchain technology, you can already see the problem boil.
Any platform that uses a distributed register to store user data (blockchain, ethereum) is, by all means, screwed. There is absolutely no way around this. And if companies ignored this new application? Well, the fine only represents 4% of your company’s revenue, up to 20 million euros.
So, if you have invested in a project, own a project or are generally interested in a better understanding of the evolution of this market, pay attention to the following: store user data on any distributed public registry is halfway a really, really, really unpleasantly expensive result.
Of the top 100 cryptocurrencies, how many can you identify who will face problems because of this new regulation? Platforms that contain user data in any form must ensure that there is a way to delete this data. Let me stress again this: This means a great no-no for storing user data on a ledger from where these data can not be deleted.
What about other rules?
Other key changes can be tracked without compromising the concept of immutable distributed registry technology. If you want more information on the subject, I strongly advise you to read this article. All these points are explained brilliantly by the author. If you want a deeper understanding of how this problem could be avoided see this one. In short, you will need to consider off-line data storage; that is, centralized servers.
Raise awareness, talk to members of projects where you are heavily invested and try to read as much as you can about the subject. Learning is the only way to feel safe. Your opinion is the one you should value the most, because there is no one who will look for you better than … well, yourself!
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