Data Privacy
To ensure Data Mutability, Baseledger proposes an elegant solution using encryption keys: all transaction data received by a Baseledger node is encrypted symmetrically and the corresponding key is stored safely off-chain by each node. If necessary, for example in the case of a regulatory investigation, nodes are able to decrypt the data by retrieving the key.
This setup enables data owners to at any point "delete" sensitive data by requesting nodes to delete the encryption key. This maintains the integrity of the chain while fulfilling data privacy rights. The process of deleting encryption keys will be audited and involve a Proof-Of-Deletion receipt, so that it is demonstrable. In other words, by deleting the keys that were used to encrypt data, the data can no longer be accessed by any participant even though encrypted copies remain on Baseledger nodes.
Additionally, this mechanism can be used to satisfy the right of rectification in a compliant manner: by “deleting” data as described and adding updated data to the network in a new transaction.
To ensure compliance in terms of Data Residency, only computing units in jurisdictions that comply with the agreed-upon privacy rules will be granted membership and the ability to operate a node.
To fulfill the needs of Data Democracy, we suggest a council-governed public blockchain. We propose a public blockchain, whose node operators are known and bound to data processing and data storage agreements. This empowers those who are generating data to control it, by granting them the rights to delete, modify, transfer and govern their data as described above.
For enterprise applications, these features are a necessity. Within Baseledger, data compliance and democracy are included by design.
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