Page 0011

Over the past decade, blockchain-based

technologies have evolved in a wide range

of directions. As businesses have developed

increasingly innovative blockchain solutions to

an increasingly broad range of problems,

governments, regulators and organisations have

become more active in creating meaningful

support for blockchain's huge potential. Indeed,

the European Commission announced plans

last year to increase funding for projects

drawing on blockchain technologies by up to

340 million euros by 2020.1 The European Union's

Blockchain Roundtable in November 2018 further

highlighted the desire to create a comprehensive

European strategy to boost innovation and

exploitation of blockchain technology.2

There remains, however, significant concern about the

application of the GDPR to blockchain technology, and

the difficulty of achieving a GDPR compliant blockchain

solution. Indeed, a number of recent publications have

discussed at length the tensions between the GDPR and

blockchain technology.3 Some commentators have even

gone as far as to call blockchain fundamentally incompatible

with the GDPR.4 While we take a more optimistic view, their

concerns are not entirely misplaced.

"… the development and uptake of this new

technology requires close cooperation between the

public and private sectors. Governments and economic

actors must work together to overcome regulatory

obstacles, increase legal predictability, lead

international standardisation efforts and accelerate

research and innovation …" EU Blockchain Roundtable

report, 20 November 2018" 5

Some of the most revolutionary aspects of blockchain

technology, such as the distribution of ledger data

and its generally immutable nature, do not sit neatly

with key obligations in the GDPR. These features may

lead to many applications of blockchain technology

(such as most public, permissionless blockchains) not

being compliant with the GDPR. However, in our view, they

do not necessarily render GDPR compliance impossible.

In particular, we believe it should generally be possible

to deploy a blockchain solution in compliance with the

GDPR, at least where that solution involves a defined

group of participants, all of whom agree to a common

contractual governance framework.

In this paper we analyse some of the key requirements

of the GDPR that present a compliance challenge for

blockchain solutions. We then consider how a blockchain

solution can be deployed to meet that challenge. We then

progress beyond discussion in the abstract by looking at

how these issues apply to a realworld use case developed

by Marine Transport International (MTI), a UK-based

digital logistics enabler. By analysing the compliance

challenge and considering various means of meeting that

challenge in the context of MTI's blockchain solution,

this paper aims to be of practical use to those looking to

deploy blockchain solutions in their business.

Finally, it should be noted that this publication is intended

for general information only and is not intended to

provide legal advice.

GDPR and the Blockchain I 9

Index

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