smart contract
The Data Act promotes the automated and interoperable execution of data use contracts by laying down essential requirements regarding smart contracts. Smart contracts are computer programs used for the automated execution of a contract or part of a contract (Article 2 point 39 of the Data Act). The Data Act lays down the following requirements for vendors of smart contracts in Article 36(1):
- robustness to avoid functional errors and withstand manipulation by third parties;
- mechanisms for the safe termination and interruption of transactions;
- data archiving and continuity;
- strict access control mechanisms.
Setting minimum requirements and, if appropriate, standards aims to promote interoperability between different fields of application for smart contracts. Vendors of smart contracts must perform conformity assessment to demonstrate fulfilment of the essential requirements and, on fulfilment of the requirements, must issue an EU declaration of conformity. The Commission may adopt common specifications covering any or all of the essential requirements (Article 36(6) of the Data Act).