An investigation into the impact of data protection and data privacy requirements on the development of smart contracts within the EU

Abstract

a smart contract is an agreement reached by the blockchain network's nodes. Smart contracts rely on blockchain and are recorded on a public ledger. It is a computer protocol that is used to digitally facilitate, verify, or enforce contract negotiations. The network transactions are conducted through the smart contract, which are automatically processed and executed by the blockchain. As a result, once a transaction occurs between the nodes, a function is triggered causing the invocation of the smart contract and the process of execution begins. The transaction is capable of being relayed to all nodes within the network on the blockchain, allowing all parties the chance to review it. From the standpoint of data protection, the emergence of blockchain technology may be just as revolutionary as the GDPR. Even if data is encrypted or hashed, it is still considered personal data under EU legislation. There is a risk that data protection laws may make blockchain operations illegal, suffocating the growth of innovation in the Digital Single Market.