Ensure private key security

Implement strategies to protect private keys, such as using hardware wallets or multisignature wallets and educate users in this regards.
Requirement category Privacy protection of sensitive data

Implement smart contract security measures

Implement robust security measures during the development and deployment of smart contracts to prevent vulnerabilities that could be exploited.
Requirement category Mitigation of vulnerabilities

Regular security audits

Conduct regular security audits helps identify and mitigate vulnerabilities within the blockchain network.
Requirement category Mitigation of vulnerabilities

Prevent collusion and centralized control.

Design decentralized consensus mechanisms (e.g., PoS, DPoS) with anti-sybil checks and stake diversification rules.

Store sensitive information off-chain

Store sensitive information off-chain in secure and privacy-preserving systems, referencing the data on-chain through hashes or identifiers.
Requirement category Privacy protection of sensitive data

Use governance mechansims

Establish governance mechanisms (e.g., DAO voting) to reverse dishonest transactions post-audit.
Requirement category Safeguard to protect ownership against fraud and manipulation.

Utilize zero-knowledge proofs

Enable privacy-preserving proofs (e.g., zk-SNARKs) to verify ownership without exposing sensitive data.
Requirement category Safeguard to protect ownership against fraud and manipulation.

Adopt decentralized storage

Adopt decentralized storage for ownership documents to prevent tampering.
Requirement category Safeguard to protect ownership against fraud and manipulation.

Implement Time-Locked Transactions

Use time-locked transactions to prevent sudden, unauthorized asset movements.
Requirement category Safeguard to protect ownership against fraud and manipulation.

Enforce Legal Smart Contracts

Enforce legal smart contracts with penalty clauses for unauthorized transfers or breaches.
Requirement category Safeguard to protect ownership against fraud and manipulation.

Integrate fraud detection systems

Integrate fraud detection systems (e.g., AI-driven anomaly detection) to flag suspicious transactions.
Requirement category Safeguard to protect ownership against fraud and manipulation.

Deploy on-chain asset registries

Deploy on-chain asset registries with immutable proofs of ownership (e.g., ERC-721 for NFTs, ERC-3643 for securities).
Requirement category Safeguard to protect ownership against fraud and manipulation.

Use multi-signature wallets

Implement multi-signature wallets for asset control, requiring multiple approvals for critical transactions.
Requirement category Safeguard to protect ownership against fraud and manipulation.

Open-Source Code Publication and Third-Party Audits

Publish open-source code and undergo third-party audits (e.g., CertiK, OpenZeppelin) for smart contracts.
Requirement category Enable third-party verification of compliance.

Employ randomization algorithms

Employ randomization algorithms, such as the Snake Optimization Algorithm (SOA), to enhance blockchain scalability
Requirement category Optimize transaction processing and resource distribution.

Implement Sharding with Plasma

Combine sharding with Plasma enabling parallel transaction processing and reducing congestion.
Requirement category Increase the transaction processing capacity

Implement sharding techniques

Implement Sharding to allowe the network to handle more transactions simultaneously without overburdening individual nodes.
Requirement category Increase the transaction processing capacity

Increase Block Size

Increase the block size in a blockchain network which allows more transactions to be included in each block.
Requirement category Increasing the number of transactions processed per block

Utilize immutable ledger

Leverage blockchain’s immutable ledger for real‑time, auditable tracking of environmental, social, and governance (ESG) metrics, ensuring transparent, tamper‑proof reporting that reduces greenwashing.
Requirement category ESG Reporting Integration

Modular Blockchain Solutions

Develop modular blockchain solutions to adapt to varying industry demands and large-scale deployments.

Use Energy-Efficient Mechanisms

Requirement category Energy Efficiency Applications

Use permissioned blockchains

Use permissioned blockchains for scalability and secure cross-border collaboration.

Auditable logging of activities

Implement tamper-evident logging to provide an auditable trail of all activities in the blockchain system. Then transactions can be traced back to their origin.
Requirement category Traceability, Ethical Guidelines for Blockchain Systems

Transparent transactions and operations

Ensure all transactions and operations are transparent and verifiable by stakeholders.

Partner with credible organizations

Partner with credible organizations and stakeholders to enhance trustworthiness.
Requirement category Ethical Guidelines for Blockchain Systems

Use of distributed consensus mechanisms

Use distributed consensus mechanisms and decentralization to enhance trustworthiness.
Requirement category Ethical Guidelines for Blockchain Systems

Incentive mechanisms to build trust

Design incentive mechanisms to reward behaviors that build trust and enhance security while penalizing harmful or malicious actions.
Requirement category Ethical Guidelines for Blockchain Systems

Reliable validation mechanisms

Use reliable data validation mechanisms to ensure the accuracy and integrity of data recorded on-chain.
Requirement category Ethical Guidelines for Blockchain Systems, GDPR Art. 5(1)(c) on Data Minimization

Secure Backups

Maintain secure, encrypted backups of critical blockchain data and configurations.

Use standardized protocols

Use standardized protocols to ensure secure communication and data exchange across blockchain networks.

Harden Blockchain Nodes

Harden blockchain nodes with firewalls, intrusion detection systems, and regular updates.

Encourage Ethical Blockchain

Encourage ethical use of blockchain technology
Requirement category Ethical Guidelines for Blockchain Systems

Training on Blockchain Security Requirements

Train all stakeholders, including developers, administrators, and end-users, on blockchain security requirements.

Use Decentralized Identity Frameworks

Use decentralized identity (DID) frameworks for secure and privacy-preserving user authentication.

Enforce Strict Access Controls

Enforce strict access controls to blockchain nodes, APIs, and sensitive operations.

Appropriate Consensus Algorithms

Select a consensus mechanism (e.g., Proof of Work, Proof of Stake, Byzantine Fault Tolerance) appropriate to the use case and ensure it resists common attacks (e.g., Sybil attacks, 51% attacks).

Periodic Security Assessments

Conduct periodic security assessments to identify and mitigate vulnerabilities.

Regular cryptographic protocol updates

Regularly update cryptographic protocols to protect against emerging threats (e.g., quantum computing).
Requirement category GDPR Art. 32 on Pseudonymisation and Encryption

Robust cryptographic Algorithms

Employ robust, up-to-date cryptographic algorithms (e.g., AES-256, SHA-256, elliptic curve cryptography) to secure data, transactions, and communications.
Requirement category GDPR Art. 32 on Pseudonymisation and Encryption

Ensure traceability mechanisms

Ensure traceability mechanisms respect user privacy by balancing accountability with pseudonymity.
Requirement category Traceability

Confidential transactions

Requirement category Confidentiality

Share only necessary data

Enable users to share only necessary data with specific parties by using selective disclosure mechanisms.
Requirement category Selective Disclosure