Future-Proofing the Data Governance Act with Distributed Ledgers

Data Governance & Why It Matters

Our world is full of data. Organisations, both private and public, are constantly trying to collect as much information as possible about the world and the people living in it. That's why it's becoming increasingly important to manage data effectively, in a way that both uses the immense capabilities data can offer while still being secure and manageable. Data governance is a strategy aimed at managing data within an organisation: setting internal standards that apply to how data is gathered, stored, processed, and disposed of, governing who can access what kinds of data, and complying with external standards set by industry associations and government agencies.

Data governance means setting internal standards -- data policies -- that apply to how data is gathered, stored, processed, and disposed of. It governs who can access what kinds of data and what kinds of data are under governance. -- Google Cloud Training

Businesses vs. Governments

From a business perspective, data governance refers to the principles that organisations establish to utilise data properly and effectively, while still keeping information secure and complying with data regulations. On the flipside, the role of EU governments in relation to data governance is to regulate and standardise data governance practices across regions. The most popular organisational tactic has been through the Data Governance Act, which aims to facilitate cross-border data sharing for public interests and the common good.

EU Data Governance Policies

The EU has taken significant steps to promote data sharing through policies like the Data Governance Act, the Open Data Directive, and most recently the Data Act. It recognises that in order to use data to its full potential, more data needs to be made available, shared with confidence, and technically easy to re-use. The Data Governance Act aims to create a framework to promote re-using and sharing protected or public data, while also promoting data altruism, across various industries including health, agriculture, finance, and public administration. The key difference from the earlier Open Data Directive is that the DGA recognises that private data is also very valuable and insights can be obtained without compromising the security of the data.

In order to truly capitalise on this enormous potential, more data must be made available, shared with confidence and technically easy to re-use. -- Data Governance Act

Data Governance & Blockchain

The public blockchain is a shared database that allows anyone to privately store and exchange information without dependency on a trusted third party. It has the advantage of protecting privacy and safeguarding a tamper-proof data trail, offering transparency and the possibility to verify transactions without compromising privacy. Integrating blockchain with policies like the Data Governance Act will achieve both the EU's objectives in providing secure and robust information sharing, and maintain its leadership in future-proofing technology and systems as a leader in digital transformation.

The DGA's Four Focus Pillars

The first pillar focuses on re-using sensitive data held by public sector bodies, where blockchain's pseudonymous nature provides secure and confidential access. The second pillar aims to create a more accessible environment for data sharing within a single market, where blockchain allows users to hold their own keys and give or revoke access to information at any time. The third pillar focuses on corporate and individual data altruism, enabling voluntary data sharing for the common good. The fourth pillar focuses on coordinating national practices and policies through a European Data Innovation Board, where blockchain could provide a common platform while allowing customisation.

• Pillar 1: Re-use sensitive data with pseudonymous, secure access
• Pillar 2: Open data sharing with user-controlled access keys
• Pillar 3: Data altruism for research and public benefit
• Pillar 4: Cross-national coordination on a common platform

A Future of Opportunity & Innovation

Data will continue to dominate government agendas around the world. The UK government highlights blockchain's potential for collecting taxes, issuing passports, and supply chain management. The German government recognises its promising contribution in finance, administration, health, and network collaborations. We find ourselves at a pivotal point: governments can stay ahead of the curve and integrate blockchain as a foundational technology, or they can ignore it and risk lagging behind. If the EU chooses the former, they have the potential to advance data governance by making data both more secure and more accessible than ever before.