{"id":563655,"date":"2023-03-14T23:20:00","date_gmt":"2023-03-14T20:20:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/europarliament-approves-data-act-that-requires-kill-switches-on-smart-contracts\/"},"modified":"2023-03-14T23:20:00","modified_gmt":"2023-03-14T20:20:00","slug":"europarliament-approves-data-act-that-requires-kill-switches-on-smart-contracts","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/europarliament-approves-data-act-that-requires-kill-switches-on-smart-contracts\/","title":{"rendered":"# Europarliament approves Data Act that requires kill switches on smart contracts"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3db8136ff40\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3db8136ff40\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/europarliament-approves-data-act-that-requires-kill-switches-on-smart-contracts\/#%E2%80%9D_Europarliament_approves_Data_Act_that_requires_kill_switches_on_smart_contracts_%E2%80%9C\" >&#8221; Europarliament approves Data Act that requires kill switches on smart contracts  &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Europarliament_approves_Data_Act_that_requires_kill_switches_on_smart_contracts_%E2%80%9C\"><\/span>&#8221; Europarliament approves Data Act that requires kill switches on smart contracts  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDMvODExMWJjNWItNTk3My00Njk5LTk4NDEtZTU2OTc5NzcxZThjLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-48054ca8>The European Parliament passed the Data Act on March 14. The comprehensive bill was intended to \u201cboost innovation by removing barriers obstructing access to industrial data.\u201d Among its provisions is an article that would require smart contracts to be alterable.\u00a0<\/p>\n<p>The legislation <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.europarl.europa.eu\/doceo\/document\/A-9-2023-0031_EN.html\">established<\/a> rules for fairly sharing data generated by \u201cconnected products or related services,\u201d such as the Internet of Things and \u201cindustrial machines.\u201d Eighty percent of industrial data generated is never used, the Europarliament <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.europarl.europa.eu\/news\/en\/press-room\/20230310IPR77226\/data-act-meps-back-new-rules-for-fair-access-to-and-use-of-industrial-data\">noted<\/a> in a statement, and this act would encourage greater use of those resources to train algorithms and lower prices for device repairs.<\/p>\n<p>The act contains provisions to protect trade secrets and avoid unlawful data transfers and it set requirements for the smart contracts of parties offering sharable data, including \u201csafe termination and interruption\u201d:<\/p>\n<blockquote><p>\u201cThe smart contract shall include internal functions which can reset or instruct the contract to stop or interrupt the operation; [\u2026] Especially, it should be assessed under which conditions non-consensual termination or interruption should be permissible.\u201d<\/p><\/blockquote>\n<p>The act also granted smart contracts equal protection with other forms of contract. <\/p>\n<p>Experts identified a number of issues with the legislation. OpenZeppelin head of solutions architecture Michael Lewellen commented in a statement provided to Cointelegraph:<\/p>\n<blockquote><p>\u201cIncluding a kill switch undermines immutability guarantees and introduces a point of failure since someone needs to govern the use of such a kill switch. [\u2026] Many smart contracts such as Uniswap do not have this kill switch ability.\u201d<\/p><\/blockquote>\n<p><strong><em>Related:\u00a0FTX proves MiCA should be passed fast, officials tell European Parliament committee<\/em><\/strong><\/p>\n<p>Prof. Thibault Schrepel of the Vrije Universiteit Amsterdam said in a tweet that the act, \u201cendangers smart contracts to an extent that no one can predict,\u201d and pointed out sources of legal uncertainty in the act. In  particular, he found that it did not specify who could stop or interrupt a smart contract. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Today, the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Europarl_EN?ref_src=twsrc%5Etfw\">@Europarl_EN<\/a> is debating the Data Act (<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/cwDOFDGmU9\">https:\/\/t.co\/cwDOFDGmU9<\/a>). My thoughts on the latest version of Article 30 (<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/smartcontracts?src=hash&amp;ref_src=twsrc%5Etfw\">#smartcontracts<\/a>).<br \/>\u279d The immutability of smart contracts is key to their survival (i.e., immutability is their main differentiating <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/X3XfgRC6ZL\">https:\/\/t.co\/X3XfgRC6ZL<\/a>\u2026 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/4JHg2fP84j\">https:\/\/t.co\/4JHg2fP84j<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/8QTSBxSueH\">pic.twitter.com\/8QTSBxSueH<\/a><\/p>\n<p>\u2014 Thibault Schrepel (@ProfSchrepel) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ProfSchrepel\/status\/1635556417930252288?ref_src=twsrc%5Etfw\">March 14, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The bill was passed by a margin of 500-23, with 110 abstentions. Parliament members will now negotiate the final form of the law with the European Council and individual member countries of the European Union. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/europarliament-approves-data-act-that-requires-kill-switches-on-smart-contracts\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Europarliament approves Data Act that requires kill switches on smart contracts &#8220; The European Parliament passed the Data Act on March 14. The comprehensive bill was intended to \u201cboost innovation by removing barriers obstructing access to industrial data.\u201d Among its provisions is an article that would require smart contracts to be alterable.\u00a0 The legislation&#8230;<\/p>\n","protected":false},"author":1,"featured_media":563656,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/8111bc5b-5973-4699-9841-e56979771e8c.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75434,72705,70934],"class_list":["post-563655","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-smart-contracts","tag-european-union","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/563655","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=563655"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/563655\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/563656"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=563655"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=563655"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=563655"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}