The Ethereum ecosystem is adapting to address data privacy concerns by proposing a modular compliance strategy to align with the European Union's General Data Protection Regulation (GDPR). The proposal, drafted by Ethereum community member Eugenio Reggianini, suggests using modular architecture for effective data management and privacy. By decentralizing personal data to wallets and DApps, utilizing offchain storage with metadata-erasure, and cryptographically splitting roles, GDPR controller duties can be focused on a few entities while the network acts as processors. Transitioning to a modular architecture could integrate privacy-enhancing technologies like proto-danksharding and zk-SNARKs to achieve GDPR compliance. The proposal outlines various technologies for reducing personal data exposure and breaks down GDPR implications across Ethereum's layers. By focusing on data controllership at the application layer and leveraging PETs, Ethereum aims to protect user privacy while maintaining its core principles. Success will rely on community adoption, developer support, and alignment with EU regulators. Read more AI-generated news on: https://app.chaingpt.org/news