Handling :undefined from Erlang

No, Erlang does not use :nil at all. Seeing everything always has a value we went for not having anything which could be interpreted as not having a value. I would interpret undefined as meaning the thing you are try to look at as not being defined. As for example the :ets.info/1 call where it means the table is not defined or in :erlang.whereis/1 where it means that the registered name is not defined.

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