The application of blockchain technology in voting scenarios will make remote business activities more possible

Core Tip: Nasdaq recently used blockchain technology to allow international residents in Estonia to vote at shareholders' meetings even if they are not in the country, which further proves that blockchain technology will have great potential. Experts believe that the application of blockchain technology in voting scenarios indicates that the technology will provide more possibilities for remote business activities in the future.

Author: Zhang Yun Intern: Wang Lei

Beijing (CNFIN.COM/ XINHUA08.COM) -- As the supporting technology of Bitcoin, the application scope of blockchain is gradually expanding. Nasdaq Exchange currently uses this technology to allow international residents in Estonia to participate in shareholders' meetings and vote even if they are not in the country. This further verifies that blockchain technology will have great potential. Experts believe that the application of blockchain technology in voting scenarios this time shows that this technology will provide more possibilities for remote business activities in the future.

Estonia provides a cross-border digital ID card called e-Residency for people who conduct online business activities in the country. However, if these people own shares of Estonian listed companies, they must attend the shareholders' meeting in person or designate someone else to vote on their behalf. However, Nasdaq is expected to change this cumbersome process by using blockchain technology.

The essence of blockchain technology is a decentralized data storage and transmission method that can record every Bitcoin transaction in a data block and connect them together through a global network to form a blockchain. This technology ensures the authenticity of accounts and transactions, and it is difficult to tamper with transaction records. Nasdaq is applying this technology to shareholder voting.

In this case, if a person is on the Estonian government's electronic ID list, the system will assign him a so-called "private key", which is a unique password consisting of a long string of numbers. The password will be saved in the blockchain so that it cannot be stolen or tampered with. Users can participate in the online shareholders' meeting by entering the password to verify their identity online. This technology helps companies confirm the identities of people participating in online shareholders' meetings.

“The decentralized nature of this identity management system makes it extremely difficult to forge identities and duplicate votes,” Alexander Shelkovnikov, head of Deloitte’s corporate venture capital and blockchain division, told CNBC in a phone interview.

The blockchain technology used by Estonian companies is private and can only be accessed by the individual or business using the technology. Companies using the technology must be listed on the Tallinn Stock Exchange, Estonia's only compliant secondary securities market. The exchange is owned by Nasdaq Group. The trial is expected to take place in the second half of this year.

Blockchain has become a buzzword among major financial institutions. Many banks have seen the potential of this technology and invested in many startups in this field. It is also worth mentioning that this is not the first time that Nasdaq has applied blockchain technology. Last year, the company completed and recorded a personal securities transaction through blockchain.

Schalkvinikoff said that this blockchain trial is not a specific case in Estonia, and it can also be applied in many aspects, such as election voting. He said: "Electronic voting can be used not only in stock exchanges, but also in other areas where voting is required, such as personal and party elections."