Benefits of a Private Blockchain
Private blockchains are becoming increasingly popular for businesses looking to improve their data processing compliance with GDPR, HIPPA, CCPA and GLBA regulations. A private blockchain is a type of distributed ledger that allows only specific parties to access the data stored within it.
One example of a private blockchain being used for data compliance is in the healthcare industry. Healthcare providers need to ensure that their patient data is kept private and secure while still allowing for easy access by authorized personnel. A private blockchain can be used to store patient records, ensuring that only authorized personnel can access the information.
Data protection legislation commonly requires businesses to ensure that their data processing practices are transparent, secure, and lawful. Private blockchains are particularly well-suited to meet these requirements as they offer a level of transparency and security that traditional centralized databases cannot.
In the real-world data will continue to be held in centralised databases, even where the adoption of blockchain technology is occurring. Instruxi’s Neutrino Mesh allows data in both centralised and Web3 settings to be subject to a data protocol enforcing authorisation and oversight in data access. Using smart contracts data protection compliance can be built into the data query process. This innovation is called Proof of Policy.
An additional benefit is that private blockchains can provide an auditable trail of data access and modification, which is essential for compliance with data governance requirements. All data searches via Proof of Policy are similarly traceable, even where the data is not stored on blockchains. This helps businesses identify potential data breaches or unauthorized access, allowing them to take swift action to mitigate any risks.
Overall, private blockchains offer an effective solution for businesses looking to improve their data processing compliance with laws to which they are subject. The healthcare industry is just one example of how private blockchains can be used to protect sensitive data while still allowing for easy access by authorized parties. By using a private blockchain, businesses can ensure that their data processing practices are compliant with GDPR and HIPAA, providing their customers and users with peace of mind that their data is safe and secure.
Written by: Catherine Greene - Instruxi Limited Operations Manager
