Paraguay has made a notable advancement in the blockchain industry by creating the Paraguayan Blockchain Chamber, focused on promoting financial innovation on a sovereign blockchain. Ricardo Prieto, the Chamber’s director, outlined the initiative’s main goal: developing blockchain solutions across both public and private sectors, including government, finance, commerce, and civil and military domains.
The project, called Legaledger, is built on Hyperledger and Besu*
platforms, positioning it as the world’s first third-generation blockchain network with national sovereignty. A key feature of Legaledger is its exemption from gas fees for military and legal security transactions, in line with Paraguay’s Digital Law 6.822/21.
Prieto emphasized Legaledger’s innovative fractal architecture, which is the first to utilize a dual blockchain framework (Hyperledger Fabric + Besu) with the ability for regional and global replication. This design allows seamless interoperability between countries, addressing a concern highlighted in a report by the Bank for International Settlements (BIS) on the risks of using third-party blockchains for legal security.
In 2021, Paraguay passed Law 6.822/21, governing trust services for electronic transactions and documents. This law laid the groundwork for Legaledger, offering a blockchain network with national sovereignty, no gas payments, and strong legal security, with the potential for global replication and perfect interoperability between countries.
Prieto explained that the third-generation blockchain was designed to ensure legal security for blockchain-based transactions and procedures, which global blockchain networks often fail to provide. Additionally, the initiative enables the digitization of government, civil, and military judicial processes, as well as the tokenization of financial and real-world assets (RWA), all under a framework of legal certainty.
Since its inception in 2021, the project has faced challenges, particularly in tokenizing real estate assets. Legal consultations revealed that public blockchain tokens alone do not guarantee legal security for property ownership, underscoring the importance of public registries and notaries in ensuring lawful ownership transfers.
Legaledger’s fractal design can be applied across various sectors, maintaining interoperability for sequencing, publishing procedures, and international operations. Prieto pointed out that, unlike other countries, Paraguay’s unique digital law allows for the secure digitalization of rights over tangible and intangible assets on a sovereign blockchain.
By implementing a sovereign blockchain with legal security, countries can establish an international digital jurisdiction, enabling high levels of procedural digitalization and asset tokenization under a legal framework, concluded Prieto.
Source: crypto-news-flash.com
