NFTs and Data Protection

Abstract

Non-fungible tokens (NFTs) are unique digital tokens built on blockchain technology that represent and provide public evidence of the ownership of underlying assets. They have reshaped the digital landscape by offering a novel paradigm for ownership authenticity and value exchange across various sectors, including art, entertainment, and real estate. NFTs have given rise to complex legal issues, particularly in data protection law. This chapter investigates the intersection of NFTs and data protection, emphasizing the legal challenges arising from the processing of personal data within NFT ecosystems. The General Data Protection Regulation (GDPR or Regulation), known for its stringent requirements and broad territorial scope, serves as the primary framework for the analysis. This study examines how NFTs, which often store or reference various forms of data including metadata, assets, ownership records, and transaction histories, fall under the GDPR’s strict data protection regime. It explores the challenges posed by blockchain’s inherent characteristics, such as immutability and decentralization, in aligning with GDPR principles.