Data Localization: An In-Depth Analysis
Ever since the internet has been invented, the world has become a global village. This means that at the present moment, data can flow freely all over the world. However, many countries are not happy with this arrangement. Countries like Russia and China are already trying to enforce data localization laws which would inhibit the free movement of data across the world. The Indian government has also shown interest in data localization. The fact that all the developing nations of the world are in some form demanding data localization is both interesting as well as unprecedented. In this article, we will have a closer look at what data localization means and its pros as well as cons.
Define Data Localization:
Data localization is a way of storing data within the physical boundaries of a country. For instance, the data which has been generated in China should be stored within the physical boundaries of China. Some countries also demand that the company creating and transmitting this data should have a physical presence within the geographical boundaries. The main reason behind the push in data localization laws has been the increasing concern about how the security and privacy of data will be maintained once it has crossed international borders.
Many governments insist that data localization is the only way forward to ensure that the data on the internet is safe and secure. On the other hand, proponents of open internet believe that data localization will destroy the free internet which has become the backbone of the modern economy.
Advantages of Data Localization
Some of the advantages of data localization are as follows:
Most people do not believe with the suggestions that the flow of data should be restricted or monetized. However, everyone seems to agree with the fact that security threats need to be mitigated. Lets have a look at some more disadvantages.
The GDPR Adequacy Status
The European nations have created a better alternative to data localization. The EU defines a list of countries which meet their standards for data transfer. This is known as an adequacy status. Hence, data pertaining to European citizens can be transferred to other countries and companies based on their adequacy status. This gives the governments the control that they need over the data which has been generated in their nation. At the same time, it does not cause undue problems for companies.
To sum it up, the idea of data localization may be unnecessary. There may be cheaper and more acceptable workarounds to solve the underlying problem.
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