The European Parliament approves the controversial Data Act
The EU Data Act contains a controversial “kill switch” provision for smart contracts. The emergency stop provision is troubling because it provides the ability to stop the execution of smart contracts based on blockchain technology. This development could have far-reaching implications for the development and application of smart contracts, which are a fundamental component of many crypto projects and services.
The crypto industry fears that this will make most smart contracts unusable. The EU Data Act requires investors in automated programs such as smart contracts to undertake certain obligations.
This regulation is questionable because it can lead to unlimited long-term liability in decentralized systems in which the individual seller cannot be identified. In blockchain technology, where many processes occur without a central authority, the question arises of how such obligations can be enforced and who will ultimately be held accountable if something goes wrong.
Image: BitExpert