Implications Of Blockchain Technology On Privacy Obligations

The LA Kings of the NHL recently launched an augmented reality (“AR”) “authentication app”, which it describes as an “augmented reality blockchain authentication platform” to help consumers validate the authenticity of approved merchandise and memorabilia purchased from the team or affiliated sellers.

The app allows fans to use their phone camera to scan a sticker attached to the product and confirm whether the product is registered as an authentic item. If confirmed, the app can then play multimedia messages recorded by prominent Kings personnel, including hall of famer Luc Robitaille.

AR in a consumer app makes sense. It has become increasingly ubiquitous in mainstream applications, with virtually everyone having a device with a camera and some networking capability. The use-case for consumers is easy to imagine.

The use of blockchain technology, which is as much a buzzword as AR, may be the more interesting feature. Blockchain can help heighten security by ensuring the reliability of information, but it does not necessarily otherwise protect the data from scrutiny.

Developers of platforms utilizing blockchain technology should be aware that responsibilities under applicable legislation and the risk of liability in common law are not diminished because of the use of such technology.