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5 Reasons Why Your Business Should Consider Decentralized Storage for GDPR Compliance
March 21, 2023
5 min read
In today's data-driven world, the General Data Protection Regulation (GDPR) plays a crucial role in safeguarding the personal information of EU citizens and giving them more control over their data. Since its introduction in May 2018, businesses have been seeking secure and compliant storage solutions to manage the growing volume of data they generate. Decentralized storages are an innovative set of technologies that can help businesses meet GDPR requirements more effectively. In this blog post, we will discuss five reasons why a business should consider adopting decentralized storage for GDPR compliance.
1 - Enhanced Data Security
Decentralized storage distributes data across multiple nodes or servers, rather than storing it in a single centralized location. This approach significantly improves data security, as there is no single point of failure. In the event of a cyber attack, it becomes much more challenging for hackers to access or compromise your data, as they would need to breach multiple nodes simultaneously.
By using decentralized storage, you can better protect the personal data of your customers and employees, thus meeting the GDPR's requirements for robust security measures.
2 - Improved Data Privacy
A critical aspect of GDPR compliance is ensuring the privacy of your users' data. Decentralized storage offers encryption of data both in transit and at rest, making it highly secure and private. Since data is encrypted before being distributed across the network, even if a node is compromised, the attacker would only gain access to encrypted data that is virtually useless without the decryption keys.
This level of privacy assurance helps businesses maintain GDPR compliance by safeguarding the confidentiality of personal data and minimizing the risk of unauthorized access.
3 - Increased Data Control and Transparency
The GDPR requires businesses to provide transparency and control to users over their personal data. Decentralized storage systems can offer detailed information about data storage and access, making it easier for businesses to maintain accurate records of processing activities.
Moreover, with decentralized storage, you can grant or revoke access to specific users or groups, ensuring that only authorized personnel can access sensitive data. This level of control supports GDPR compliance by allowing businesses to manage data access and processing in a transparent and secure manner.
4 - Data Resilience
One of the GDPR's principles is the integrity and availability of personal data. Decentralized storages improve resilience by distributing data across multiple nodes. In case a node fails or experiences downtime, the data remains available on other nodes, ensuring uninterrupted access and preventing data loss.
This data resilience is crucial for GDPR compliance, as it helps businesses maintain the availability and integrity of personal data, even in the face of hardware failures or other unforeseen events.
5 - Data Localization and Compliance with Cross-Border Data Transfer Regulations
The GDPR imposes strict restrictions on the transfer of personal data outside the EU. Decentralized storage can help businesses comply with these regulations by allowing them to choose where their data is stored. By selecting nodes located within the EU or in countries with adequate data protection laws, businesses can ensure that they adhere to GDPR's cross-border data transfer requirements.
Decentralized storage offers numerous benefits that can help businesses achieve GDPR compliance more effectively. From enhanced security and privacy to increased control and data resilience, this innovative technology is well-suited for businesses looking to protect their users' personal data and adhere to the stringent requirements of the GDPR. By considering decentralized storage as part of your data management strategy, your business can better navigate the complex data protection landscape and foster trust among your customers and partners.