Fitting a Block into a Sphere Mold: The Inadequacy of Current Data Privacy Regulations in Protecting Data Privacy within the Blockchain Space

Authors

Jenny Yang, Washington and Lee University School of LawFollow

Abstract

Despite global imposition of data privacy laws and regulations, data privacy is a nonexistent luxury amongst the data-charged world we live in. Data privacy has long been established as a fundamental right. Entities have successfully established robust methodologies around existing data privacy laws and regulations to utilize past consumer behavior to predict, impact and manipulate current and future consumer behaviors. This phenomenon has been commonly coined as “corporate surveillance.” Emerging spaces arising through technological developments have greater access into consumer data to impact economic choices. Specifically, the blockchain space, through its unique open-source and permanent traits, has been able to skirt around data privacy laws and regulations through its nonconventional decentralized nature. Current data privacy regulations are geared towards centralized systems, thus not readily applicable to decentralized blockchains. While most blockchain spaces boast of increased security, the danger lies within the increased volume and access into data collection itself that is not regulated, prompting greater invitation for bad actors. Countries, especially the United States, should impose stricter data privacy regulations to impact the blockchain space to provide consumers greater data protection within emerging new technological spaces. Blockchain spaces should also have minimum data privacy protection mechanisms such as the usage of zero-knowledge proofs and integration of data privacy regulations at the system’s foundation. Through the combination of establishing necessary requirements and heightened regulations, consumer data and privacy can be better protected as a fundamental right.

Recommended Citation

Jenny Yang, Fitting a Block into a Sphere Mold: The Inadequacy of Current Data Privacy Regulations in Protecting Data Privacy within the Blockchain Space, 30 Wash. & Lee J. Civ. Rts. & Soc. Just. 377 (2024).
Available at: https://scholarlycommons.law.wlu.edu/crsj/vol30/iss2/11