It is no secret that companies today are in possession of more digital data than ever before. However, as the volume of this information has continued to soar, so have the scope of responsibilities relating to the storage, sharing, protection, and utilization of these sensitive data sets.
In this regard, it is worth mentioning that several scandals that have plagued prominent mainstream entities such as Meta, LinkedIn, Instagram, and TikTok in recent years have highlighted the clear need for better privacy protocols that can prevent the misuse of consumer data at scale.
But with the complexity of regulations that enterprises are required to comply with having increased quite dramatically over the past decade, more and more people have sought to take back control of their data which is generally maintained on cloud-based systems which are known to be prone to leakage/hacking related issues.
Lastly, with the penalties associated with the lightest of data breaches has risen quite exponentially in recent years, the need for quality data compliance solutions has skyrocketed.
So what exactly is data compliance, and why is it important?
In layman’s terms, data compliance refers to a comprehensive set of regulations that enterprises are required to follow so as to prove their competence in guarding sensitive digital assets such as an individual’s personal ID-related info, their financial details from nefarious third parties, hackers, etc. These rules come in different shapes and forms, including standards that are sometimes followed by a particular industry, state/federal-level laws, and sometimes even supra-national regulations.
Some examples of today’s popular data compliance standards include the General Data Protection Regulation (GDPR), the Health Insurance Portability and Accountability Act (HIPAA), the Payment Card Industry Data Security Standard (PCI DSS), and the California Consumer Privacy Act (CCPA).
To put it another way, data compliance signals to customers that their personal information will always remain secure, thus allowing brands to build their market reputation, hire high-caliber employees, maximize their customer loyalty and reduce any chances of lousy publicity. That said, as things stand, many enterprises still struggle to comply with today’s data compliance standards, resulting in them being slapped with massive fines that can sometimes snowball into hundreds of millions of dollars regularly.
Enter blockchain-based compliance systems
Before processing any further, it would be best to understand what a blockchain is. Simply put, it is a decentralized ledger consisting of data entries that are secure, traceable, and completely verifiable. As a result, any information contained in these systems comes replete with a robust audit trail, one that is immutable, resistant to third-party infiltration, and available for a thorough review or due diligence process.
In this regard, ParrallelChain Lab is a layer-1 open-source blockchain platform for decentralized applications powered by a unique proof-of-stake consensus called ‘ParallelBFT.’ The project ensures consumer privacy compliance (e.g. GDPR) and provides users with a comprehensive business-sensitive data protection system. It is also worth mentioning that ParallelChain offers enterprise solutions offering eKYC and AML RegTech tools; supply chain tracking; company data security monitoring system; construction project management; asset tokenization, etc.
The firm’s growing market clout is best highlighted by the fact it will be organizing this year’s International Symposium on Blockchain Advancements (ISBA), a two-day event that will host keynote speakers like the Rt. Hon. Boris Johnson, the ex-Prime Minister of the United Kingdom among others.
Moreover, just recently, ParallelChain Lab was awarded the prestigious ‘One to Watch – Blockchain for KYC’ mantle as part of the 5th Regulation Asia Awards for Excellence 2022. The award acknowledged the firm’s native eKYC-Chain offering, an innovative blockchain-based customer onboarding, and KYC compliance solution. Technically speaking, the project is designed to be deployed within any financial ecosystem, allowing for the creation of a shared, decentralized KYC database that is accessible to all network participants while still retaining the privacy rights of its customers, including a unique “Ability-to-Forget” functional module.
Looking ahead
As we head into a future driven by decentralized technologies, many experts, including Lindsay Hohler, principal at Grant Thornton, and Andrew Smith, an analyst for leading market intelligence firm IDC, believe that there will be no alternative for organizations but to maintain quality data compliance and disposal practices moving forward. This is because these standards can really make or break a firm’s reputation and potential market viability in the eyes of the world. Therefore, it will be interesting to see how things pan out for this space from here on out.
