{"id":98463,"date":"2019-02-23T19:02:36","date_gmt":"2019-02-24T03:02:36","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=98463"},"modified":"2025-11-08T13:10:56","modified_gmt":"2025-11-08T13:10:56","slug":"zcash-solves-gdpr-compliance-with-p4-protocol-and-shielded-addresses","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/zcash-solves-gdpr-compliance-with-p4-protocol-and-shielded-addresses\/","title":{"rendered":"Zcash Solves GDPR Compliance with Shielded Addresses and P4 Protocol"},"content":{"rendered":"<p><a href=\"http:\/\/cryptoslate.com\/coins\/zcash\">Zcash<\/a>, one of the first privacy coin to leverage zero-knowledge proofs, is further cementing its vision of privacy-protection by engineering its blockchain in a way that is\u00a0<a href=\"https:\/\/z.cash\/blog\/zcash-shielded-addresses-are-gdpr-compliant-by-default\/\">GDPR compliant<\/a>\u00a0by &#8220;default.&#8221;<\/p>\n<h2>Primer on GDPR<\/h2>\n<p>The General Data Protection Regulation (GDPR) is the European Union\u2019s regulation protecting personal data and privacy; its goal is to return personal data to individuals within the European Economic Area. Among EU and US companies, GDPR has been accepted as a new standard for data regulation\u2014companies have paid a lot of attention to become compliant with these new rules.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">With the GDPR we are building a European sovereignty on data. We have to do the same for the cloud, for AI, for innovation at large. <a href=\"https:\/\/twitter.com\/hashtag\/VivaTech?src=hash&ref_src=twsrc%5Etfw\">#VivaTech<\/a><\/p>\n<p>&mdash; Emmanuel Macron (@EmmanuelMacron) <a href=\"https:\/\/twitter.com\/EmmanuelMacron\/status\/999627576090988545?ref_src=twsrc%5Etfw\">May 24, 2018<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Crypto advocates claim that blockchain will return data ownership, privacy, and identity back to users. However, this vision is sometimes at odds with GDPR. Due to the immutable nature of distributed ledgers, some information is stored forever on public blockchains. And, because of <a href=\"https:\/\/eur-lex.europa.eu\/legal-content\/EN\/TXT\/HTML\/?uri=CELEX:32016R0679&from=EN\">Article 17<\/a>, the right of erasure\u2014colloquial known as the \u201cright to be forgotten\u201d\u2014isn\u2019t always designed into blockchain-based services.<\/p>\n<p>The right of erasure revolves around the concept that a user can request the deletion of personal data at any time. This places greater responsibility on online services to more carefully store and access personal data. Moreover, these rights are especially important in an era where hacks and cybersecurity threats are becoming increasingly prevalent, giving users the opportunity to remove their personal data before it\u2019s stolen later.<\/p>\n<h2>Blockchain and GDPR<\/h2>\n<p>Unfortunately, the idea of immutability is in some ways at odds with GDPR. Fortunately, blockchains can be engineered in a way that is compliant, like what Hyperledger Fabric is doing in its new 1.4 <a href=\"https:\/\/hyperledger-fabric.readthedocs.io\/en\/release-1.4\/private-data\/private-data.html\">private data collection<\/a> or Zcash which is GDPR-compliant &#8220;by default.&#8221;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Shielded addresses are GDPR compliant by default. These addresses are never at risk of leaking data in a post-compliance scenario because they neither store nor transmit identifiable information at any point in the transaction process. Learn more: <a href=\"https:\/\/t.co\/djmivttCHv\">https:\/\/t.co\/djmivttCHv<\/a><\/p>\n<p>&mdash; Electric Coin Company (@zcashco) <a href=\"https:\/\/twitter.com\/zcashco\/status\/1097526433608536064?ref_src=twsrc%5Etfw\">February 18, 2019<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2>Zcash's Shielded Addresses and P4<\/h2>\n<p>Private Periodic Payment Protocol, or the <a href=\"https:\/\/leastauthority.com\/static\/publications\/LeastAuthority-P4-Private-Periodic-Payment-Protocol.pdf\">P4 Protocol<\/a>, (a protocol is a collection of agreements to communicate in a specific way) is used for private subscription cryptocurrency payments. The P4 Protocol was developed by <a href=\"https:\/\/leastauthority.com\/\">Least Authority<\/a>, the same company that <a href=\"https:\/\/z.cash\/blog\/spinning-off-our-sibling-company\/\">Zcash grew out of,<\/a> and utilizes shielded addresses as well as <a href=\"https:\/\/tahoe-lafs.org\/trac\/tahoe-lafs\">Tahoe-LAFS<\/a> (a free and open source decentralized cloud storage system) for data storage, further <a href=\"https:\/\/leastauthority.com\/blog\/introducing-p4-private-periodic-payment-protocol\/\">reaffirming<\/a> that Zcash's shielded addresses are compliant.<\/p>\n<figure id=\"attachment_44765\" aria-describedby=\"caption-attachment-44765\" style=\"width: 469px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-44765 \" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/04\/Shielded-Ecosystem-Zcash-871x1024.png\" alt=\"\" width=\"469\" height=\"551\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/04\/Shielded-Ecosystem-Zcash-871x1024.png 871w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/04\/Shielded-Ecosystem-Zcash-255x300.png 255w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/04\/Shielded-Ecosystem-Zcash-768x902.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/04\/Shielded-Ecosystem-Zcash.png 1000w\" sizes=\"(max-width: 469px) 100vw, 469px\" \/><figcaption id=\"caption-attachment-44765\" class=\"wp-caption-text\">Zcash uses cryptography to create a private &#8220;<a href=\"https:\/\/z.cash\/blog\/zcash-private-transactions\/\">shielded<\/a>&#8221; ecosystem<\/figcaption><\/figure>\n<p>Unlike <a href=\"http:\/\/cryptoslate.com\/coins\/bitcoin\">Bitcoin<\/a> and other cryptocurrencies, Zcash\u2019s shielded addresses inherently prevent data leaks and data theft. In Zcash, transactions do not transport identifiable information, eliminating the need to track data through the transaction process. By leveraging a zero-knowledge proof technology called \u201c<em>Zero-Knowledge Succinct Non-Interactive Argument of Knowledge<\/em>,\u201d or <a href=\"https:\/\/z.cash\/technology\/zksnarks\/\">zk-SNARKs<\/a> for short, the Zcash blockchain can function without revealing as much information as other blockchains.<\/p>\n<p>In greater detail, zk-SNARKs is a proof system that allows the Zcash software to prove that a statement is true without revealing any other information. The technology leverages \u201c<a href=\"https:\/\/www.wired.com\/2014\/11\/hacker-lexicon-homomorphic-encryption\/\">homomorphic encryption<\/a>\u201d which is a form of encryption that allows computers to perform operations on already encrypted data without compromising its security.<\/p>\n<p>The P4 Protocol builds on all of these technologies, allowing decentralized applications to accept subscription payments in a GDPR-compliant way, representing another production use case for this technology. By embracing GDPR, Zcash could lead the way and encourage compliance among other blockchain and cryptocurrency projects within the ecosystem.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Zcash, one of the first privacy coin to leverage zero-knowledge proofs, is further cementing its vision of privacy-protection by engineering its blockchain in a way that is\u00a0GDPR compliant\u00a0by &#8220;default.&#8221; Primer on GDPR The General Data Protection Regulation (GDPR) is the European Union\u2019s regulation protecting personal data and privacy; its goal is to return personal data [&hellip;]<\/p>\n","protected":false},"author":114,"featured_media":42281,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[61045,37],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Zcash Solves GDPR Compliance with Shielded Addresses and P4 Protocol<\/title>\n<meta name=\"description\" content=\"Zcash is further cementing its vision of privacy-protection by engineering the blockchain in a way that is \u201cnatively\u201d GDPR compliant.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/zcash-solves-gdpr-compliance-with-p4-protocol-and-shielded-addresses\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Zcash Solves GDPR Compliance with Shielded Addresses and P4 Protocol\" \/>\n<meta property=\"og:description\" content=\"Zcash is further cementing its vision of privacy-protection by engineering the blockchain in a way that is \u201cnatively\u201d GDPR compliant.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/zcash-solves-gdpr-compliance-with-p4-protocol-and-shielded-addresses\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2019-02-24T03:02:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-11-08T13:10:56+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/04\/zcash-social.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Atul Ajoy\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Zcash Solves GDPR Compliance with Shielded Addresses and P4 Protocol\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Atul Ajoy\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/zcash-solves-gdpr-compliance-with-p4-protocol-and-shielded-addresses\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/zcash-solves-gdpr-compliance-with-p4-protocol-and-shielded-addresses\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/atul-ajoy\/#person\",\"name\":\"Atul Ajoy\",\"url\":\"https:\/\/cryptoslate.com\/author\/atul-ajoy\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/atul-ajoy\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/atul-ajoy\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/02\/author-atul-ajoy.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/02\/author-atul-ajoy.jpg\",\"caption\":\"Atul Ajoy\"},\"jobTitle\":\"Contributor\",\"description\":\"Atul is a blockchain entrepreneur and is passionate about decentralization. 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