Using Blockchain DNS to Address Global Data Privacy Laws

Preparing for Personally Controlled Data using the Decentralized Web

MC5 Identity Solutions
NexBloc
3 min readNov 8, 2021

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Blockchain Domains Give Access to the Decentralized World

It is difficult to understand the complexities of data privacy compliance for most businesses and even harder to put systems in place to address the world’s vastly different rules and regulations. However, with a movement to the decentralized web, we are now given tools that can take a lot of the burden off the business while providing control of a user’s data for websites, applications, social media platforms, and more.

NexBloC is at the core of this movement with a multi-chain approach to providing a blockchain domain naming system, bDNS. Blockchain domains are being used for logging into decentralized applications, DApps, and form a perfect union between secure authentication and easily rememberable access names. For example, for anyone who has sent money using PayPal or Zelle using the recipient’s email address, this way is similar in several ways. First, the email is controlled by the user and connected to a bank account of their choice. Second, sending it to the email address they give you gives confidence that it will be received. Finally, connecting to a DApp using your controlled domain name such as “yourname.tld” is simple even though it is complex technology. For instance, I have multiple domains such as dana.lern that connect to wallets for authentication.

The Interactive Advertising Bureau (IAB) Europe has been feeling the effects of Europe’s General Data Protection Regulation (GDPR) with an ongoing investigation into infringements with its role in the Transparency & Consent Framework (TCF). However, suppose an organization like IAB is struggling with interpreting and executing on data privacy. In that case, it is easy to understand how small businesses can become contrary to the laws and risk penalties. Now magnify that by every locale in the world with their special regulations.

Is the decentralized web and bDNS ready for GDPR and other data privacy laws? Since the data’s owner can wholly control access to their data, we argue yes. However, the laws’ nuances need to be addressed to ensure compliance is recognized and technology advancements to accomplish this. Necessary is data management with an infrastructure that allows for several features, including a user interaction interface environment to enable users to manage their data. With the use of public permissionless blockchains, it may not be easy to allow a user to delete their data since the very nature of those blockchains can create an immutable record. With private or hybrid blockchains, the ability to develop self-sovereign identities (SSI) gets more interesting. For example, Alastria has had success with its ID-Alastria model.

The Sovrin Foundation has also been active with an identity network and has a significant educational component to bringing the world closer to blockchain DNS. As we bridge better interrelationships between physical ID systems such as fingerprints, face verification, and digital-first ID, we can build trustless “Proof” support. All of our devices working together and interacting with other nodes in an Edge Computing neighborhood can start to make our lives better by associating Proof of Location with validation on a device. This alone can potentially eradicate credit card fraud in the future with an interconnected confirmation of our physical presence and digital footprint.

With NexBloC, we are excited to be part of this significant jump forward into a world where we own our data, control our data, and others beg for it.

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MC5 Identity Solutions
NexBloc

Various writers contribute to the stories on MC5. Primary among them: Dana Farbo. We live tech and entrepreneurship.