The India National Stock Exchange has partnered the Elemential lab platform to test a blockchain-based e-voting system on its listed companies.
The New E-Voting System Adoption
India NSE choice in the adoption of blockchain based e-voting system as recently announced is a testament of the adoption of the blockchain technology by the traditional financial system.
The Indian National Stock Exchange announced this through an official statement that it would be partnering with Elemential lab for the e-voting platform.
While the viability of the solution is underway, the blockchain-based e-voting system is targeted at setting up a blockchain that connects the regulators with its listed companies and RTA. Entities involved will work with tokenized voting rights that will make it easier for transfer and proxy.
Auditability and ease of completion process with blockchain would be the point of evaluation for the Stock Exchange.
The NSE’s CTO-Projects, Sankarson Banerjee stated that the immutable nature of blockchain would enhance every action taken by a network participant to be transparent to the regulator. Banerjee further said that the smart contract framework enables synchronization of the vote count process between the company and the regulator in real time. This would aid cooperate governance and compliance.
Risk Management and Transparency Of The System
The Elemental lab blockchain-based platform is built with an open-source Hyperledger framework. And the SI partner for the pilot would be NSE IT which will build and manage the front end application.
The blockchain platform is not only meant to enable a more straightforward process of e-voting but also to make the voting process relatively low risk and also improve the transparency as well.
The CEO of Elemential Lab, Raunaq Vaisoha, stated that the blockchain solution enables a real-time immutable trail of all activities for the regulator. Vaisoha further explains that this feature brings the cause a step closer to highly transparent and clear corporate governance; an operating standard that most companies aspire to attain.
The Elemental Lab is a blockchain project that is sponsored by many investors that include matrix partners. The lab provides plug-and-play blockchain solutions to its clients. NSE has been working with the lab since 2016 with a know your customer application presented to over 300 bankers during an NSE conference.