European Parliament Passes Data Law with Potential Impact on Encryption Industry

03/14/2023 11:59 • Tech Trends • 121 views

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）

The European Parliament regulates smart contracts according to the data law

Analysis based on this information:

On Tuesday, the European Parliament passed relevant legislation of the Data Law with 500 votes in favour and 23 against. While this law is not directly aimed at the encryption industry, there are concerns that it may have far-reaching implications, particularly in the area of smart contracts. Smart contracts are covered under the provisions of Article 30 of the EU Data Law, which outlines the basic requirements for smart contracts for data sharing.

One of the main concerns is that the scope of the legislation is not clearly defined, leaving room for interpretation and the potential for it to be applied to areas beyond its intended purpose. The encryption industry is particularly concerned because smart contracts rely heavily on encryption to function, and any changes to the regulations governing encryption could have a significant impact.

The provisions of Article 30 outline several requirements for smart contracts, including the need for a strict access control mechanism and trade secret protection integrated into the design. Additionally, there must be a mechanism for terminating or interrupting a transaction, and the legislator must decide under what conditions this is permitted.

While these provisions are designed to protect data and ensure that smart contracts are secure, there is a worry that they could also stifle innovation in the encryption industry. This industry relies on being able to develop and test new technologies without fear of legal repercussions, and any new regulations that limit this could have a negative impact.

Overall, the passage of the EU Data Law is likely to have a significant impact on the encryption industry, particularly in the area of smart contracts. While the intention of the legislation is to protect data and ensure that smart contracts are secure, the industry is concerned that it may have unintended consequences that limit innovation and growth.

Keywords such as Data Law, Smart Contracts, and Encryption are relevant to this news article as they highlight the concerns of the encryption industry on the impact of data law on their operations.

This article and pictures are from the Internet and do not represent aiwaka's position. If you infringe, please contact us to delete:https://www.aiwaka.com/2023/03/14/european-parliament-passes-data-law-with-potential-impact-on-encryption-industry/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.