The Right to be Forgotten and its Effects on Contractual Relationships in Public Blockchains; a Comparative Analysis of Data Privacy in Iranian and European Law

Document Type : Original Article

Author
Master's student in Private Law, Islamic Azad University, Science and Research Branch, Tehran, Iran
10.22034/lc.2025.559675.1710
Abstract
This research examines the inherent contradiction between the immutability and transparency features of public blockchains and the “right to be forgotten” in accordance with Article 17 of the EU General Data Protection Regulation. This conflict is particularly evident in the context of contractual relationships based on smart contracts, as the decentralized and immutable nature of blockchains makes it challenging to implement the right to delete personal data. The main objective of the research is to analyze the effects of this conflict on different stages of the contractual relationship including formation, execution, and dissolution and to provide technical and legal solutions to mitigate it. The research method used is analytical-descriptive with a comparative approach in which the legal systems of Iran and Europe are compared. The research findings show that technical solutions, including the design of self-destructing smart contracts, data hashing, and off-chain storage of sensitive information, can mitigate this conflict to some extent. From a legal perspective, strategies such as data segregation, including explicit terms in contracts, and developing blockchain-specific regulatory frameworks have been proposed. Finally, this research emphasizes the need for interdisciplinary collaboration to achieve a balance between individual privacy and the integrity of blockchain technology.
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