Blockchain and the GDPR: The EU Blockchain Observatory Report
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Reports | 531
Practitioner's Corner
Blockchain and the GDPR: The EU Blockchain Observatory Report
Patrick Van Eecke and Anne-Gabrielle Haie*
1. Introduction
Distributed Ledger Technologies (DLT), of which
blockchain is an example, represent a major techno-
logical breakthrough. A ledger is a database which
keeps a final and definitive record of transactions.
Records, once stored, cannot be tampered with with-
out leaving behind a clear trace. Blockchain, which
is the best known distributed ledger technology, en-
ables a ledger to be maintained on a network across
a series of nodes, without requiring a centralised lo-
cation or the need for intermediaries' services. It is
a decentralised database which allows large num-
bers of actors to store synchronised copies of the
same data. The specifics vary by technology, as there
are several types of blockchains. These technologies
are particularly helpful for providing trust, traceabil-
ity and security in systems that exchange data or as-
sets.
Originally invented in the context of cryptocurren-
cy, DLT and blockchains constitute a tool that could
significantly disrupt key sectors of the economy,
ranging from energy, transport, health sector, supply
chains, education, creative industry, financial sector
to public and institutional governance, as highlight-
ed by the European Parliament, in its resolution
adopted on October 2018.2
DOI: 10.21552/edpl/2018/4/18
Prof Dr Patrick Van Eecke is Professor at the University of
Antwerp teaching European Information Technology and Com-
munications Law and Partner at the law firm DLA Piper UK LLP in
Brussels. Anne-Gabrielle Haie is Associate at the law firm DLA
Piper UK LLP in Brussels.
1 European Commission, 'How can Europe benefit from
Blockchain technologies?' (Factsheet, 1 February 2018) <https://
ec.eu ropa.eu/digital-single-market/en/news/how-can-eu rope
-benefit-blockchain-technologies> accessed 26 November
2018.
2 European Parliament, 'Distributed ledger technologies and
Blockchains: building trust with disintermediation' (Resolution, 3
October 2018) 201 7/2772(RSP) <https://bit.ly/2zzjd4m> accessed
26 November 2018.
The European Union has heeded the call by
launching an EU Blockchain Observatory and Forum
(EU Blockchain Observatory) at the beginning of this
year. Its tasks include mapping key initiatives, mon-
itoring developments and inspiring common actions.
On 16 October 2018, the EU Blockchain Observatory
published its first thematic report on the key issue
of the compatibility of blockchain with the General
Data Protection Regulation (GDPR). Key statements
of this report on 'Blockchain and the GDPR' (in the
following 'the report') are:
* '[T]here is no contradiction in principle between
the goals of the GDPR and those of Blockchain
technology' and 'GDPR compliance is not about
the technology, it is about how the technology is
used';
* Depending on the organisation of the network, the
decentralised nature of the blockchain technology
may conflict with key principles of the GDPR, such
the accountability principle and the data minimi-
sation principle;
* Enforcement of data subjects' rights may also be
hindered due to the immutability of the data
stored on a blockchain network.
Against these statements of the EU Blockchain Ob-
servatory, European data protection authorities are
urged to position themselves on the way to concili-
ate blockchain and the GDPR requirements taking
into account the impact that blockchain could have
on the European ecosystem. In the meanwhile, en-
trepreneurs and innovators are advised to carefully
think through how they use personal data on a
blockchain network.
11. General Relationship between
Blockchain and the GDPR
The GDPR 'was conceived and written before
blockchain technology was widely known, and so
EDPL 4|2018](ViewImageLocal?handle=hein.journals/edpl4&div=88&collection=&method=preview&ext=.png&size=3)
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Blockchain and the GDPR: The EU Blockchain Observatory Report
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