Chile: Smart Contracts Definition and Legality

Although there is no official statement on smart contracts in Chile presently on offer, the Chilean government is currently using smart contracts in a nation-wide energy project.

In March 2018 there was a presentation in Santiago on blockchain, smart contracts, and their applications. Andrés Araya Falcone, IT Manager of the Santiago Stock Exchange stated in his speech that, in a Blockchain network, the same contract is nothing more than a set of instructions and self-execution protocols based on certain conditions and functions allows a certain action to be executed in the digital world. The key, the information, the code and its modification are allocated in decentralized blocks of information that make this technological platform superior to others in aspects of security and alterability. Likewise, as indicated, only the contract rules describe what can be modified or not and any change to a duly validated document is executed in all of them with the consent of all those who have allocated any of the blocks of the information chain. Here the concept is repeated, transparency, trust and decentralization.

The Smart Contracts, Andrés Araya Falcone added, are potentially applicable to digital identities; transaction of non-digital assets such as gold, oil or real assets; new types of currency or units of commercial exchange; P2P private networks between Banks; financial instruments with electronic records such as stocks, bonds or derivatives; reconciliation processes KYC - AML; rules for storing and storing information; and rules of e-commerce markets among others, without, however, constituting a challenge to connect the real world with the digital world.

Santiago has also seen a series of blockchain workshops held by Uniendo.LA, together with the companies Etherlab and CryptoMKT, focusing on the programming of smart contracts on Ethereum, using the language Solidity.


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