The Ethereum proposal presents the Path of GDPR’s compliance using a modular structure

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As the Ethereum ecosystem evolutions and its basic principles to solve problems related to data privacy, the up-to-date proposal recommends a modular compliance strategy as a path to reconcile public blocks with a general regulation in the field of European Union data protection (GDPR).

On Monday, a proposal prepared By a member of the Eugenio community, Eugenio Reggianini suggested the exploit of modular architecture for effective data management and privacy.

“By moving personal data to the edge (wallets and TAPPS), using offchain storage with metadata erasura and cryptographically dividing the roles, we can focus the responsibilities of the GDPR controller on a small set of entities, while the wider network becomes ordinary processors or leaves in the scope,” Reggianini said.

The transition of Ethereum to modular architecture may enable the integration of various technologies that escalate privacy (Pets), which according to Reggianini may achieve compliance of the GDPR in environments without acceptable blockchain.

Source: Ethresearkbot

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Technical map: pets to the rescue

The proposal presents several technologies already integrated or proposed for Ethereum, which facilitate reduce the exposure to personal data, including proto-bandan (EIP-4844), which limits the life of the transaction to about 18 days, forcing minimization of storage.

The zero-major, uninteractive knowledge argument (ZK-Snark) can also facilitate improve privacy, because they include validation confirming concise cryptographic evidence, and not viewing transactional charges, dramatically reducing the visibility of Onchain data.

Other PET integrations that could facilitate in compliance with the GDPR include fully homomorphic encryption and trusted executive environments (TEE), multi -party calculations (MPC), separation of the Applicant’s component (PBS) and sampling of equivalent data availability (peerdas).

Proposed framework of GDPR compliance. Source: ethresear.ch

Modular strategy of Ethereum compliance

The proposal spreads the implications of the GDPR in three layers of the Ethereum network: execution layer, consensus layer and data availability layer.

The execution layer would act as processors providing only encrypted or blinded data, while the layer of consensus will only approve the obligations and evidence of zero knowledge. Finally, the data availability layer, under Peerdas, would only store anonymous shards for circumscribed time frames, adapting them to the principle of minimizing GDPR data.

Reggianini stated that by focusing on data control on the application layer and the exploit of pets, Ethereum can protect the privacy of users without sacrificing its basic rules.

Despite this, the success of the frame will depend on the wide adoption of the community, the entry of programmers and the potential adaptation to EU regulatory bodies.

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