Polygon publishes an open letter to the European Parliament to clarify how smart contracts work

ChainCatcher news, Polygon has drafted and sent an open letter to representatives of the European Parliament, the Council of the European Union, and the European Commission regarding Article 30. The purpose is to clarify the scope and intent of Article 30 to ensure it reflects how smart contracts operate.

It is reported that Article 30 of the EU General Data Protection Regulation (GDPR) is a law that requires organizations processing personal data to maintain records of their processing activities. Article 30 stipulates the following requirements: (A) a party provides a smart contract under the condition of consent to provide data. Since all smart contracts share some data, the proposed legislation is overly broad and may be unenforceable in decentralized systems. The open letter outlines the potential negative consequences of imposing "secure termination or interruption" requirements on such smart contracts in permissionless systems.

Polygon further suggests amendments to narrow the scope of Article 30. The intent behind this is that the article should only affect "personal data" in permissioned smart contract systems owned and operated by identifiable natural persons or corporate entities that have signed customary data-sharing contract agreements, as the term is used in data law. Through this letter, Polygon hopes to ensure that global software developers, including those in the EU, can continue to innovate through smart contracts. (source link)