What is the Data Act?

The European Parliament recently buzzed with excitement as they voted to pass the Data Act—a sweeping piece of legislation aimed at unleashing the potential of industrial data by removing existing barriers. The clock struck March 14, and the bill sailed through with a decisive 500-23 vote, though 110 members mysteriously remained as fence-sitters, opting to abstain.

Boosting Innovation with Industrial Data

At its core, the Data Act is all about innovation. How, you ask? Well, approximately 80% of industrial data generated goes to waste, much like that uneaten piece of cake hiding in the back of the fridge. The Act encourages businesses to access and analyze this data generated by connected devices and industrial machinery, essentially turning data into the icing on the cake—sweetening the deal for data algorithms and potentially lowering repair costs.

Smart Contracts: The Good, The Bad, and the Interruptible

Among the juicy provisions lies a clause that requires smart contracts to have a little wiggle room. The legislation states that these contracts must contain the ability to be altered or terminated under specific conditions, leading some to raise eyebrows. As pointed out by Michael Lewellen from OpenZeppelin, integrating a ‘kill switch’ could potentially jeopardize the immutability that makes smart contracts, well, smart! Who knew a little switch could cause so much drama?

Concerns Surrounding Legal Uncertainty

While the enthusiasm was palpable, not everyone threw confetti in celebration. Legal scholars, such as Thibault Schrepel, have expressed that the act introduces a hazy cloud of uncertainty. Who exactly gets to press the ‘stop’ button on these contracts? They claim the lack of clear guidelines could create a real pickle for those relying on smart contracts.

The Road Ahead

Now that the Data Act has passed, the fun is just beginning. Parliament members will negotiate the specifics with the European Council and individual EU member countries. Brace yourselves; the long journey to the final form of the Data Act is sure to be filled with spirited debate, unexpected twists, and perhaps a few more surprises.