European Parliament Approves Data Act, Calls for Terminable Smart Contracts
Summary:
The European Parliament has approved the contentious Data Act that requires smart contracts to have a termination mechanism. The Act, which needs approval from the European Council to become law, also allows users access to data they create with smart devices. Despite concerns that the Act could deem smart contracts that utilize public blockchain data as illegal, the European Commission insists the focus isn't on blockchain, dispelling fears over the legality of smart contracts.
The Data Act, a contentious piece of legislation that includes a clause requiring smart contracts to have a termination function, has been approved by the European Parliament. The legislation received 481 votes in favor and 31 against during a vote on November 9, as stated in a press release from the parliament. The next step for the bill to become law is approval from the European Council, made up of the leaders of the 27 member countries of the European Union.
The newly accepted Data Act stipulates that smart contracts must have the capacity to be discontinued and terminated. The Act also encompasses controls that facilitate the end or resetting of a contract.
The primary objective of the Data Act is to allow users to access data they produce from smart gadgets, with the European Commission stating that 80% of the data gathered goes unused.
However, the Act has drawn criticism, particularly regarding the smart contract provision. Critics argue that the definition is overly broad and lacks specificity about under what circumstances interruptions or terminations should take place.
An open letter in June, signed by numerous crypto firms and sent by EU blockchain advocacy groups, expressed concerns that the Data Act could lead to smart contracts that utilize data from public blockchains such as Ethereum being in violation of the law.
In response to these concerns, the European Commission has reportedly stated that the Data Act's focus is not on blockchain and dismissed fears that the Act could render smart contracts illegal.
The city of Helsinki boasts of a peculiar crypto achievement: In 2009, a total of 5,050 Bitcoin was bought for just $5, marking the city's significant claim in the crypto world.
Published At
11/10/2023 1:37:30 AM
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