{"id":618193,"date":"2023-03-15T10:51:55","date_gmt":"2023-03-15T15:51:55","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/03\/15\/european-parliament-data-act-includes-smart-contract-kill-switch\/"},"modified":"2023-03-15T10:51:55","modified_gmt":"2023-03-15T15:51:55","slug":"european-parliament-data-act-includes-smart-contract-kill-switch","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/03\/15\/european-parliament-data-act-includes-smart-contract-kill-switch\/","title":{"rendered":"European Parliament Data Act Includes Smart Contract \u2018Kill Switch\u2019"},"content":{"rendered":"<div id=\"page\">\n<div id=\"content_box\">\n<header>\n<div>\n<p><img loading=\"lazy\" alt src=\"https:\/\/secure.gravatar.com\/avatar\/41169a86822e6585e2f87627f7d7ef3a?s=32&#038;d=mm&#038;r=g\"  height=\"32\" width=\"32\" decoding=\"async\"><\/p>\n<p><span><span>By <a href=\"https:\/\/fullycrypto.com\/author\/mahu_bs\" title=\"Posts by Mark Hunter\" rel=\"author\">Mark Hunter<\/a><\/span><\/span><\/p>\n<p><span><\/p>\n<p>3 hours ago<span>Wed Mar 15 2023 11:52:22<\/span><\/p>\n<p><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/header>\n<p><img loading=\"lazy\" width=\"1300\" height=\"890\" src=\"https:\/\/fullycrypto.com\/wp-content\/uploads\/2023\/03\/European-Parliament-Approves-Smart-Contract-\u2018Kill-Switch.png\" alt=\"European-Parliament-Approves-Smart-Contract-\u2018Kill-Switch\u2019\" decoding=\"async\" title data-layzr=\"https:\/\/fullycrypto.com\/wp-content\/uploads\/2023\/03\/European-Parliament-Approves-Smart-Contract-\u2018Kill-Switch.png\">\t\t\t\t\t\t\t\t\t\t\t<\/p>\n<div>\n<p><span><span>Reading Time: <\/span> <span>2<\/span> <span>minutes<\/span><\/span><\/p>\n<ul>\n<li aria-level=\"1\"><span>The European Parliament has voted to implement new smart contract laws, which includes a provision to include a \u2018kill switch\u2019<\/span><\/li>\n<li aria-level=\"1\"><span>The kill switch would necessitate smart contracts to be mutable, which has worried experts<\/span><\/li>\n<li aria-level=\"1\"><span>The vote passed 500-23, but experts have warned that it could create security flaws<\/span><\/li>\n<\/ul>\n<p><span>The European Parliament has been messing with the <\/span><a href=\"https:\/\/fullycrypto.com\/blockchain-news\"><span>blockchain<\/span><\/a><span> and <\/span><a href=\"https:\/\/fullycrypto.com\/cryptocurrency-news\"><span>cryptocurrency<\/span><\/a><span> world again, this time by approving a bill that will force smart contract developers to include a \u2018kill switch\u2019 that will mean they can be altered, potentially undermining their entire purpose. The collective yesterday passed the Data Act, which is intended to \u201cboost innovation by removing barriers obstructing access to industrial data\u201d, but crypto enthusiasts have called into question the merits of some of the articles within it, which they say introduce security flaws.<\/span><\/p>\n<h2><span>\u201cSafe Termination and Interruption\u201d of Smart Contracts<\/span><\/h2>\n<p><span>According to a <\/span><a 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\" target=\"_blank\" rel=\"nofollow noopener\"><span>statement by the European Parliament<\/span><\/a><span>, the legislation was introduced to govern the equitable sharing of data produced by \u201cconnected products or related services,\u201d such as the Internet of Things and \u201cindustrial machines.\u201d The Parliament observed that 80% of industrial data is unused and the act aims to promote the utilization of these resources for algorithmic training and device repair cost reduction.<\/span><\/p>\n<p><span>The legislation also includes safeguards to shield trade secrets and prevent unauthorized data transfers. It also mandates specific provisions for the smart contracts of entities providing shareable data, including provisions for \u201csafe termination and interruption\u201d:<\/span><\/p>\n<blockquote>\n<p><span>The 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.<\/span><\/p>\n<\/blockquote>\n<p><span>This potential for blockchains to become amendable was seized on by blockchain experts, who immediately flagged the fact that it undermines the very nature of blockchains and smart contracts by creating a central point of failure. One such person was Thibault Schrepel, Associate Professor of Law at VU Amsterdam and Faculty Affiliate at Stanford University\u2019s CodeX Center, who took to Twitter to point out the many flaws in the plan:<\/span><\/p>\n<blockquote>\n<p dir=\"ltr\" lang=\"en\">Today, the <a href=\"https:\/\/twitter.com\/Europarl_EN?ref_src=twsrc%5Etfw\">@Europarl_EN<\/a> is debating the Data Act (<a href=\"https:\/\/t.co\/cwDOFDGmU9\">https:\/\/t.co\/cwDOFDGmU9<\/a>). My thoughts on the latest version of Article 30 (<a href=\"https:\/\/twitter.com\/hashtag\/smartcontracts?src=hash&#038;ref_src=twsrc%5Etfw\">#smartcontracts<\/a>).<br \/>\n\u279d The immutability of smart contracts is key to their survival (i.e., immutability is their main differentiating <a href=\"https:\/\/t.co\/X3XfgRC6ZL\">https:\/\/t.co\/X3XfgRC6ZL<\/a>\u2026 <a href=\"https:\/\/t.co\/4JHg2fP84j\">https:\/\/t.co\/4JHg2fP84j<\/a> <a href=\"https:\/\/t.co\/8QTSBxSueH\">pic.twitter.com\/8QTSBxSueH<\/a><\/p>\n<p>\u2014 Thibault Schrepel (@ProfSchrepel) <a href=\"https:\/\/twitter.com\/ProfSchrepel\/status\/1635556417930252288?ref_src=twsrc%5Etfw\">March 14, 2023<\/a><\/p>\n<\/blockquote>\n<p><span>Professor Schrepel pointed out that immutability is key to a blockchain\u2019s survival, warning that implementing a kill switch endangers them \u201cto an extent that no one can predict\u201d, while the draft didn\u2019t point out who would be responsible for carrying out such an action \u2013 the creator of the smart contract or a third party?<\/span><\/p>\n<p><span>Schrepel\u2019s concerns weren\u2019t enough to sway the European Parliament, which voted 500-23 in favor of the move, with 110 abstentions.<\/span><\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/fullycrypto.com\/european-parliament-data-act-includes-smart-contract-kill-switch?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=european-parliament-data-act-includes-smart-contract-kill-switch\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Mark Hunter<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Mark Hunter3 hours agoWed Mar 15 2023 11:52:22 Reading Time: 2 minutes The European Parliament has voted to implement new smart contract laws, which includes a provision to include a \u2018kill switch\u2019 The kill switch would necessitate smart contracts to be mutable, which has worried experts The vote passed 500-23, but experts have warned<\/p>\n","protected":false},"author":1,"featured_media":618194,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25023,3217],"tags":[],"class_list":{"0":"post-618193","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-european","8":"category-parliament"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/618193","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=618193"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/618193\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/618194"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=618193"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=618193"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=618193"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}