for example the us state of tennessee has passed a bill which recognises that blockchain data and smart contracts have legal effects de yet a global coverage of this recognition will be a key success factor for blockchainbased networks with the introduction of the european union s general data protection regulation gdpr the question of blockchain technology s compatibility with gdpr arose toth the eu blockchain observatory and forum created a dedicated working group for blockchain and the gdpr and launched a report end of stating that compliance can be achieved by blockchain initiatives but further investigations and rulings axe needed eu blockchain observatory and forum