Employing blockchain for identity verification may result in various ramifications under privacy statutes:

Data Privacy: Due to its immutable nature, once the data is recorded on the blockchain, it could not readily be changed or erased. This may conflict with privacy laws, such as the General Data Protection Regulation (GDPR) in the European Union, which provides individuals with a right to be forgotten. Keeping personal information on the blockchain may violate this right, as such information cannot be deleted once it is attached to the blockchain.

 Data Security: Although the use of blockchain provides a strong encryption method, it creates decentralized storage which could heighten the risk for inadvertent exposure of sensitive identity data, if appropriate safeguards are not taken. In an area where there are strict laws governing data protection, such as California with the California Consumer Privacy Act – CCPA, it is critical to maintain compliance with the implied requirements of protecting the data that is stored through secure methods.

Consent: In order to use and share a blockchain based identity verification system, consent from an individual would need to be clearly obtained. Technology should have methods of assurance that the individual could control who could access the data. This is in keeping with the privacy statutes in place, which require meaningful and informed consent practices for the handling of their data.

Cross-Border Issues: Because blockchain is not specific to one jurisdiction or country, there could be problems with complying with local privacy laws governing where and how personal data could be stored or transacted, resulting in conflict with the local national privacy laws.