Ethereum's new proposal: modular architecture + privacy enhancement to comply with EU GDPR data regulations, what are its features?

Ethereum community member Eugenio Reggianini published a new proposal on June 9 on EthResear.ch, in which Eugenio Reggianini proposed that modular architecture and privacy-enhancing technologies (PETs) can be used to achieve the data protection requirements of the European Union's General Data Protection Regulation (GDPR) while maintaining the decentralized nature of Ethereum. (Synopsis: Ethereum is about to take off? Four factors may become coin price drivers) (Background addition: The Ethereum Foundation announced five major fiscal reforms: reducing ETH spending to 5% by 2030, strengthening staking and DeFi deployment, expanding Cypherpunk... Ethereum community member Eugenio Reggianini published a new proposal on June 9 on EthResear.ch, in which Eugenio Reggianini proposed that modular architectures and privacy-enhancing technologies (PETs) can be used to achieve the data protection requirements of the European Union's General Data Protection Regulation (GDPR) while maintaining Ethereum's decentralized nature. The ultimate goal is to centralize personal data management responsibilities at the application layer and ensure that the underlying infrastructure only processes anonymized or pseudonymized data, thereby maintaining Ethereum's decentralization vision while protecting user privacy. Modular architecture: redefining the role of data management At the heart of Reggianini's proposal is Ethereum's modular architecture, which divides the network into an execution layer, a consensus layer, and a data availability layer, and clearly distinguishes the roles of "controller" (those who decide what the data will be used) and "processors" (those who only process the data). Personal data is pushed to the edge (wallets and decentralized applications) and off-chain storage and metadata elimination technologies are used to reduce the risk of on-chain data exposure. According to Reggianini, this approach limits GDPR controller responsibilities to a small number of entities, such as application developers, reducing the compliance burden by limiting the majority of network nodes to processors or completely unconstrained by regulations. Privacy-Enhancing Technologies: Core Tools for Protecting Data Several privacy-enhancing technologies (PETs) are described in the proposal, including: Proto-Danksharding (EIP-4844): Data minimization is achieved by storing blocks of transaction data off-chain for approximately 18 days and then pruning. zk-SNARKs: Validators only verify concise cryptographic proofs, not the original transaction content, reducing data visibility. Fully homomorphic encryption and trusted execution environments (TEEs): Perform operations on encrypted data to ensure that nodes cannot see plaintext. Multi-Party Computing (MPC) and Proposer-Builder Separation (PBS): Decentralizes data processing authority and reduces access to personal data by a single node. PeerDAS: Data is stored briefly in erased encoded fragments, and nodes hold only incomprehensible fragments and automatically expire. According to Reggianini, these technologies will significantly reduce the risk of on-chain personal data exposure, meet GDPR data minimization and appropriate technical measures, while preserving the decentralized nature of blockchain. Hierarchical Role Assignment: Compliance Strategies for Each Competently The proposal divides Ethereum's transaction processing into three layers, and proposes GDPR compliance policies for each layer: Execution layer: The wallet and application front-end submit encrypted data as controllers; Relay nodes and block builders only process hidden data and become processors. Consensus layer: Validators only process proofs and promises, do not involve personal data, become neutral validators, and are out of the scope of GDPR. Data availability layer: With PeerDAS, nodes only store anonymous data shards for a short time, in line with the principle of data minimization. According to Reggianini, through a layered design, personal data is transformed or abstracted before entering the blockchain to ensure privacy and compliance. Collaborative Governance: The Key to Compliance Reggianini concluded by emphasizing that the success of the proposal depends on widespread community adoption of privacy-enhancing technologies, developer support, and potential alignment with EU regulators. Through a collaborative governance model, Ethereum can develop a voluntary code of conduct to further clarify roles and reduce compliance risks. Results: Collaborative governance ensures that technology aligns with regulatory requirements and promotes the sustainable development of the Ethereum ecosystem. The European Union's General Data Protection Regulation (GDPR) is a regulation implemented in May 2018 to protect the personal data and privacy rights of EU citizens and regulate the behavior of organizations when processing personal data. It requires legal and transparent data processing, ensures data minimization, security and accountability, gives individuals the right to access, correct, delete, etc., applies to entities worldwide that process EU citizens' data, and faces high fines for non-compliance. For a public permissionless blockchain like Ethereum, the GDPR poses a challenge because its immutability and decentralized nature conflict with the GDPR's right to delete and data minimization principles. All nodes processing data may be considered "controllers", increasing compliance responsibilities; Personal data that is on-chain is difficult to delete or anonymize. Related reports Ethereum spot ETF net inflows for 15 consecutive days; On the other hand, Bitcoin ETFs have outflowed more than $1 billion in the same period Comment" Why Goldman Sachs' judgment on Ethereum is wrong The "superpower" sovereign fund is ready to invest in Ethereum Infra! Joe Lubin, CEO of ConsenSys, broke the news "Ethereum's new proposal: modular architecture + privacy enhancement to comply with the EU GDPR data specification, what are the features?" This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".