Disclaimer: The opinions expressed in this article are the author’s own and do not necessarily reflect the views of the editorial team at crypto.news.
Conspiracy theorists have long raised concerns about the concept of an “internet kill switch,” suggesting that any ability for authorities to shut down the internet could lead to censorship and control, hindering the free flow of information and expression.
Similar measures have been implemented in countries like China, Iran, and Egypt, with the United Kingdom passing legislation for an internet kill switch as far back as 2003. Recently, the European Union introduced a provision in the Data Act, which came into effect on January 11, 2024, posing a threat to the immutability principle of cryptocurrency. This provision, known as Article 30, essentially acts as a kill switch for smart contracts, allowing for their termination in case of a security breach, contradicting the core concept of immutability.
The blockchain technology, designed to maintain an unalterable history of events, faces a significant threat if such measures are implemented. The ability to manipulate data on the network could lead to a distortion of facts and history, undermining the integrity of the internet.
If Article 30 of the Data Act applies to public networks, it could spell disaster for the European crypto industry, particularly decentralized smart contracts. These contracts, known for their innovation and immutability, would be outlawed under the new legislation, jeopardizing the future of crypto in Europe.
With the passing of the Markets in Crypto Assets (MiCA) legislation, Europe’s stance on crypto has become uncertain, potentially leading to capital flight and a lack of innovation in the region. It is crucial for regulators to reconsider and refine Article 30 to prevent unintended consequences that could harm the industry.
As the European crypto industry faces these challenges, it is essential for stakeholders to unite and demand clarity on Article 30 to secure the future of blockchain technology within the bloc. The internet serves as a public record, and smart contracts play a vital role in its security. It is up to the industry to ensure that EU authorities do not have the power to alter it permanently.
Author:
Kadan Stadelmann is a blockchain developer and the Chief Technology Officer of Komodo Platform. With a background in operations security and cryptography, he has been involved in blockchain technology since 2011 and joined the Komodo team in 2016.