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· PeerDAS: A technology to erase encoded shard transient storage data, where nodes only hold incomprehensible fragments that expire automatically.

Reggianini explains that these technologies will significantly reduce the risk of on-chain personal data exposure, meet the GDPR's requirements for data minimization and appropriate technical measures, while preserving the decentralization features of blockchain.

Layered Role Assignment: Compliance Strategies in Their Place

The proposal will divide Ethereum's transaction processing into three layers and propose GDPR compliance strategies for each layer:

· Execution Layer: Wallets and application front ends act as controllers submitting encrypted data; relayers and block producers only handle hidden data, becoming processors.

· Consensus Layer: Validators only deal with proofs and commitments, not involving personal data, acting as neutral validators, beyond the scope of GDPR.

· Data Availability Layer: Through PeerDAS, nodes only transiently store anonymous data shards, complying with the data minimization principle.

Reggianini states that through layered design, personal data is transformed or abstracted before entering the blockchain to ensure privacy protection and compliance.

Collaborative Governance: Key to Achieving Compliance

Reggianini also emphasizes that the success of the proposal relies on widespread community adoption of privacy-enhancing technologies, developer support, and potential alignment with EU regulatory bodies. Through a collaborative governance model, Ethereum can establish voluntary codes of conduct to further clarify role assignments and reduce compliance risks.

Effect: Collaborative governance ensures alignment between technology and regulatory requirements, promoting the sustainable development of the Ethereum ecosystem.

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