Avoiding Data Mismanagement Through Innovation
The role of blockchain in effective data management practices
Article Written by Shane Latham
In our previous post, we established that traditional business procedures are inherently flawed when it comes to confidently compliant data management practices across an entire corporate entity, and furthermore across company boundaries. Antiquated mechanisms of data transfer such as email and cloud-based solutions are highly vulnerable to malicious cyber-attackers, and are prone to potentially hugely damaging incidents of human error.
In such scenarios, organizations are liable to receive the full force of regulatory scrutiny and potential fines of up to €20m or 4% of an organization’s annual turnover (whichever is greater); maintaining consistent levels of verifiably secure data management is now a matter of great importance in terms of consumer rights, and of corporate finances.
The only way for consistently confident data security be effectively achieved is through a divergence from traditional systems towards new technological innovations.
What needs to happen for organizations to gain control of their data under GDPR?
Whilst the adjustment of certain business practices can do much to ensure compliance of some aspects of GDPR (such as adopting more transparent and user-directed marketing procedures to allow for greater user autonomy), there are certain aspects of compliance which are not so predictable and controllable whilst using the traditional systems of the management and transfer of confidential data.
The main problem with effective GDPR compliance is that data mismanagement, especially relating to data breaches, is rarely an explicit decision, and is usually the result of the inevitability of human error combined with the use of inherently flawed technological means of data storage and transfer. To put it bluntly- many business practices relating to
the handling of personal data has traditionally been highly susceptible to data protection violation through the mistakes of employees (accidentally leaving a customer database on public display, for example) and through the flaws of technological systems routinely used by enterprises and organizations (such as highly insecure email-based data transfer).
There is a trio of factors which make effective data protection unpredictable in the current corporate setting: human error, technical weaknesses, and the unreliability of third parties. Management of these problems gets exponentially more complex across regional offices, not to mention beyond company boundaries.
Confidently compliant enterprise-level data management, therefore, will require a verifiably secure means to share and track sensitive data across business networks. However, there has never been any way to effectively do so with any verifiable confidence of correct data protection practices across the board… that is, until the invention of the blockchain.
Addressing GDPR through blockchain-powered data management
Unlocking previously unattainable levels of security, transparency, and functionality, blockchain is able to provide the technological foundations to truly secure and transparent data management and transfer. Utilized in the correct way, blockchain can inherently protect against the human error, technical weaknesses and unreliability of third parties which plague current business practices- and can thus help to facilitate a new era of truly effective routine data protection. Loyakk is working hard to make this a reality by creating a platform which inherently encourages and facilitates GDPR compliance when it comes to the matter of confidential data management.
The implementation of blockchain at the core level of the Loyakk Vega next-gen business relationship platform will enable a previously unattainable level of ultra-secure, permissioned and verifiable data transfer at the foundational technological level. In order to facilitate the sharing of data across the Loyakk network, the platform’s native LYKK utility token will be utilized to act as an ultra-secure ‘data container’ during the process. Said data never leaves the Loyakk network; access is merely allowed for permissioned parties to access a ‘shadow copy’. As the data in question is not directly transferred between servers through a technologically vulnerable means, as is the case with traditional file transfer mechanisms, the attack area for hackers or malicious actors is virtually non-existent.
Loyakk’s blockchain framework means that effective data governance and conclusive cross-network data traceability is a part of the inherent platform design; smart contract-enabled automation will provide new levels of efficient functionality in data governance, allowing seamless access permissioning based on pre-determined parameters. This mechanism ensures that confidential data is accessed only by authorized parties, negating the element of human error present within manual data transfer between individuals.
Furthermore, the permissioned sharing of data is recorded verifiably on the blockchain, allowing organizations to operate across company boundaries in a provably compliant manner. The use of a common ledger means easy auditability and confirmation of sound data management across the board; all data within the Loyakk network can be conclusively tracked, and seamlessly analyzed and reported across network boundaries- all the while
maintaining complex multi-level data privacy.
By utilizing blockchain to its full effect, human error and technological weaknesses during the data management and transfer process can be mitigated by ultra-secure interaction mechanisms on the foundational level. Verifiable data transparency means that borders within, or between, organizations are no longer barriers to effective GDPR-compliance.
Welcome to the new era of blockchain-powered data management.
About Loyakk Vega
Loyakk’s mission is to not only make data management and wider crucial business operations more secure, efficient and functional, but also to revolutionise the way in which businesses interact and network with one another. To this end, the Loyakk Vega platform will leverage blockchain technology to enable innovative functional and collaborative opportunities.
Loyakk’s decentralized ecosystem will facilitate new blockchain-enabled functionality to provide network members with a truly next-generation collaborative experience. Loyakk’s patent-pending blockchain technology-based platform will enable businesses to use blockchain for a variety of inter-company operations and B2B interactions in a more secure, efficient and functional way. The platform will allow for the efficient exchange of a variety of data types (from text documents to video files) in a blockchain-assisted, ultra-secure and permissioned manner, whilst on a deeper level facilitating the growth of something more monumental: a decentralized collaborative ecosystem of organizations with more advanced mechanisms of interaction, networking and cooperation than ever before possible in the pre-blockchain era.
By providing a platform fundamentally designed from the ground up for efficient and secure interaction and collaboration, the traditional challenges preventing the unhindered transfer of data and value can be effectively addressed whilst regulatory requirements such as GDPR are seamlessly and verifiably adhered to. As a result, meaningful collaborative relationships
can be effectively fostered between organizations, without the factor of trust between parties or the threat of regulatory consequences hindering development on this front.
Loyakk aims to ultimately facilitate the attainment of maximum collaborative value within wider business networks, while also providing the tools for seamless enterprise-grade data protection compliance.
