Blockchain technology and privacy regulation: Reviewing frictions and synthesizing opportunities

Abstract

As the application of Blockchain Technology (BCT) grows across several industries, its inherent decentralized and immutable nature raises some conflicting issues concerning privacy regulation. The enforcement of privacy regulations like the General Data Protection Regulation (GDPR) exemplifies these challenges, as certain stringent privacy requirements within GDPR may conflict with BCT's features. However, little attention is given to such critical issues. This study draws on the Technology-Organization-Environment (TOE) theoretical lens as a mechanism to unfold the issue. The current research focuses on exploring the tensions and the opportunities for synergy through the lens of TOE to prevent privacy regulatory compliance failure. We analyzed 71 multidisciplinary research studies that highlight the areas of friction and present a unifying structure for research synthesis. In response to the identified areas of friction and potential opportunities for coexistence, we formulate nine research propositions centered around six prominent and contentious data privacy and protection requirements within the GDPR. This research contributes to the broader discourse on privacy regulatory-compliant blockchain-based solutions by providing a theoretical foundation for future investigation into this critical area. The study suggests that reconciling BCT and privacy regulation requirements will unlock BCT's full potential, creating a secure, privacy-conscious technology infrastructure and offering practical implications and insights for policymakers.