Zcash (ZEC) Privacy Coin’s Shielded Addresses Claim to be Compliant by European GDPR Standards
The GDPR (General Data Protection Regulation) was created by the European Union in 2018 in order to protect EU citizens and their private data. The purpose of the GDPR is to assist in providing regulation for the gathering, analysis, and distribution of sensitive personal details outside the EU boundaries.
Zcash recently published a post on its blogging platform indicating that by default, all its shielded addresses have been designed to be GDPR compliant.
The Compliance Case As Presented By Zcash
As mentioned above, Zcash in one of its numerous blog posts recently noted that it has designed all its shielded addresses to be compliant with the GDPR. It is worth noting that offerings being made by blockchain based platforms will also be affected by the privacy regulations.
This is mainly due to the fact that most of the data transmitted by these applications tend to be public in nature. There is, therefore, a possibility that the identification data being transmitted by these platforms can be traced back to its original user.
As a result, Zcash has seen it necessary to start using Shielded Addresses. The reason for using these addresses is based on the fact that Zcash is a digital asset that cares a lot about the privacy of its user community.
Making use of the shielded addressed will make it possible for individuals to obscure vital data pertaining to the transactions that they are making online. The data to be hidden will include the addresses linked to their wallets as well as the total amount of money that has been transacted by each wallet.
The digital currency platform states that it recently conducted an analysis of how its community used the Zcash payment system. Their analysis showed that the use of these addresses makes it almost impossible for information to be traced back to a given person. As such, this shows that the platform has fully complied with the EU GDPR.
Users Need Their Data To Be Protected
Zcash noted that there is a big risk that comes with processing and holding on to personal details. When such sensitive information is stolen in a data breach, it ends up altering the lives of very many people for many years to come. In some cases, the consequences cannot be undone, and as such, leads to many lives being ruined.
Looking at the risks associated with a data breach, many clients have now started to demand better protection of their information as it is the only way to safeguard their identities as well as the security of the people that they care about. Past information breaches have led to the loss of billions of dollars and to unprecedented public outcries.
@zcashco is committed to continued exploration about where privacy-preserving blockchain technologies intersect with regulatory compliance mandates and how Zcash can serve as a meaningful mechanism for consent within the boundaries of compliance. #gdpr https://t.co/djmivttCHv
— Electric Coin Company (@ElectricCoinCo) February 1, 2019
By providing individuals with proper control of their data, organizations will be empowering their clients, as well as reducing the liability that comes with massive data breaches. According to Zcash, Least Authority, a German-based company only included shielded addresses when designing P4 payment protocols to ensure that they were GDPR compliant.