Polygon, the company behind the multi-chain blockchain platform and ERC-20 token MATIC, has sent an open letter to representatives of the EU Parliament requesting amendments to Article 30 of the EU Data Act. The letter expresses concern that the current wording of the legislation could unintentionally stifle blockchain development.
The EU Data Act aims to address the issue of companies having a monopoly over user data. However, Polygon’s board fears that the proposed amendments to blockchain smart contracts in Article 30 could put decentralized platforms in legally questionable status. The wording currently makes developers liable for the misdeeds of a third party that could use a properly functioning smart contract for less-than-ideal purposes. Furthermore, the legislation requests that developers implement a kill switch, which could prove impractical and an easy target for bad actors.
Consequences of EU Policy
Polygon’s open letter seeks to ensure the growth and responsible development of permissionless blockchain-based systems globally. The company respectfully requests that the EU Parliament considers the proposed revisions to Article 30 to ensure that the new law does not inadvertently capture open, transparent, and permissionless parts of emerging blockchain technology.
Polygon’s concerns are not unfounded. Blockchain technology is still relatively new, and its potential applications are still being explored. It is essential to ensure that regulations do not hinder innovation and development in this rapidly evolving field. Amendments to the Data Act could allow for the responsible development of blockchain technology while still addressing the issue of companies monopolizing user data.
It is worth noting that Polygon’s concerns are not unique. Many other blockchain developers and companies have expressed similar concerns about regulations stifling blockchain development. Therefore, it is essential that policymakers take into account the unique characteristics of blockchain technology when drafting regulations.
Polygon’s open letter to the EU Parliament is an essential step in ensuring the responsible development of blockchain technology. The company’s concerns about the unintended consequences of the EU Data Act are valid, and amendments to the legislation are necessary to prevent the stifling of blockchain development. It is crucial that policymakers take a balanced approach to regulating blockchain technology to ensure that it can reach its full potential while still addressing legitimate concerns about user data monopolies.