Automating data transfer compliance and dispute resolution with smart contracts

Abstract

This article proposes a hybrid framework that integrates technological and legal solutions to automate compliance and dispute resolution in international personal data transfers. The approach leverages smart contracts built on blockchain technology, incorporating standardized contractual clauses (SCC/MCC) and non-fungible tokens (NFTs) to trigger complaint procedures. By involving supervisory authorities as escrow agents, the system ensures transparency, efficiency, and regulatory compliance, thereby overcoming the limitations of traditional methods. Through comparative analysis and a case study, the article demonstrates the viability of a scalable and interoperable solution that enhances data subjects’ rights while aligning with the GDPR and other international regulatory frameworks.