Murder of smart contracts? – In addition to the already problematic MiCA regulations (Markets in Crypto-Assets), the deputies of European Parliament have also recently studied a text, the “Data Act”which could cause huge problems for the developers of smart contracts on blockchain networks. The teams of Polygon (MATIC) made a point of transmitting a open letter to the legislators of the Parliamentary Union, to warn them of the danger of death potential that this text represents for a whole section of the crypto sector.
Polygon and Ledger warn about deadly Data Act “Section 30”
We had already informed you in our lines of the danger represented by l’article 30 of the European Union regulation known as Data Act. In fact, it stipulates that the smart contracts (smart contracts) must include control mechanisms which are totally contrary to the spirit of decentralization of the cryptocurrency industry.
The society Polygon Labsat the origin of the network MATICthus published an open letter on April 17, 2023. In it, she denounces the choking hazards the development of the European blockchain sector. Especially decentralized application developers (dApps). The French hardware wallet manufacturer, Ledgeralso joined this alert message.
“Polygon Labs today published an open letter [adressé au Parlement européen] on Section 30 of the Data Act, which could have serious implications for unauthorized smart contracts (permissionless). [L’entreprise] Ledger joined the proposed amendments to circumscribe Article 30, in order to protect the development of decentralized software. »
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Save smart contracts in the EU by amending the problematic article
Polygon Labs Chief Policy Officer (CPO), Rebecca Rettigclarifies that – given that all smart contracts share some form of data – Article 30 would be « probablement inapplicable » in decentralized systems like those of cryptocurrency networks.
THE modifications following are thus proposed as amendments to this dangerous article 30:
- Add a clause that clarifies that the term “data provision agreement” applies to contractual agreements between two companiesand does not apply not agreements based on smart contracts themselves;
- Make a formulation that allows restrict the scope the term “agreement” so that smart contracts cannot be defined by agreement;
- Declare that Article 30 applies only to authorized systems (permissioned) owned and/or operated by a company ;
- Import wording similar to that of the MiCA regulation for exclude “cryptocurrency services (…) provided in a manner fully decentralized from the scope of Article 30.
Of first easing efforts had been consented last February concerning this same Data Act, on this thorny topic of the regulatory framework for smart contracts. Let’s hope that the parliamentarians of the European Union show themselves again understanding Polygon’s arguments on the serious problem remaining in this Article 30. This, in order to don’t stifle innovation what the crypto sector is carrying in Europe (and in the world).
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