The European Parliament regulates smart contracts according to the data law

It is reported that on Tuesday, local time, the European Parliament passed the relevant legislation of the Data Law with 500 votes in favour and 23 against. The legislation and its provisions on smart contracts are not specifically targeted at the encryption industry, but some people in the industry worry that if the scope is not clearly defined, the data law may have a far-reaching impact on encryption, especially in the area of smart contracts. It is reported that smart contracts belong to the provisions of Article 30 of the EU Data Law, namely “basic requirements for smart contracts for data sharing”. The provisions include “strict access control mechanism” and trade secret protection integrated into the design of smart contracts. It is necessary to have the possibility of terminating or interrupting the transaction mechanism, and the legislator needs to decide under what conditions it is allowed to terminate or interrupt the transaction. （The Block）

Interpretation of this information:

The European Parliament has passed legislation related to Data Law, receiving 500 votes in favour and 23 against. Although not specifically targeting the encryption industry, there are concerns that the provisions on smart contracts may have a far-reaching impact. Smart contracts are covered under Article 30 of the EU Data Law, which outlines strict access control mechanisms, trade secret protection, and necessary transaction termination options. The three keywords are European Parliament, Data Law, and Smart Contracts.

The passing of legislation relating to Data Law by the European Parliament indicates a shift towards increased regulation and security in the handling of data. With 500 votes in favour and 23 against, it is clear that many politicians understand the need for stricter laws in this area. However, some within the encryption industry are concerned about the potential impact on their field. While the legislation is not specifically targeting them, the vague language used may have unforeseen consequences. This is especially true when it comes to smart contracts, the provisions of which are directly addressed in Article 30 of the EU Data Law.

The provisions of Article 30 focus on the basic requirements for smart contracts in a data sharing context. Key among these requirements are strict access control mechanisms and trade secret protection, both of which are vital for maintaining security and privacy. Additionally, the article stipulates that smart contracts should have a mechanism for terminating or interrupting transactions, though it is up to legislators to determine the conditions under which this is allowed.

Overall, the passing of legislation related to data law by the European Parliament represents a step towards greater regulation and security surrounding the use of data. However, the provisions related to smart contracts may have unforeseen consequences, particularly in the encryption industry. The three main takeaways from this article are the European Parliament’s action, the Data Law itself, and the specific provisions related to smart contracts.