Why Blockchain Technology Is the Answer for Big Data Regulation
With the upcoming EU regulations on big data in the form of the forthcoming General Data Protection Regulation (GDPR), the way businesses in Europe, Asia, the Middle East, the U.S. and other regions handle client data is about to change.
The law, which will take effect on May 28, 2018, requires firms to acquire consent and clarify their ultimate purpose when collecting data from individuals or businesses in the EU region. Publishers and advertisers will also need to get consent from each user in order to use their personal data to target ads.
Contrary to popular belief, the GDPR will also impact businesses outside of the EU if they collect data or behavioral information from people in the EU region. Also, the implementation of this new law is likely to prompt other regions to tighten their regulations on big data. But with the robust growth of the Internet of Things (IoT) and the ever-rising instances of consumer data abuse, it seems that strict big data regulation is all but necessary.
However, there is a challenge for businesses in terms of the costs and complexity of implementing these laws. For instance, according to estimates by the International Association of Privacy Professionals (IAPP) in collaboration with EY, Fortune 500 companies will spend a total of $7.8 billion to comply with the GDPR regulation. This equates to an average of around $16 million per company.
The costs range, from the implementation of compliant measures to financial penalties that might occur in the event of a data breach, as well as the reputational damage from public rebuke by regulators in the field. With regulations such as the GDPR in place, companies may find themselves on the wrong side of the law, especially considering the gray areas that exist in these regulations. The lack of clarity means that it will largely be at the discretion of the regulators to decide what constitutes a violation and what does not.
It, therefore, goes without saying that businesses will need superior solutions to be able to adhere to these regulations while keeping their costs low. Blockchains, the immutable public ledger technology, are providing answers to most of these challenges through a number of innovative solutions.
