The blockchain arm of Japan-based bitFlyer Holdings is introducing a new application for shareholder voting.
According to an announcement by bitFlyer Crypto Wealth, the new application, called bVote, is intended to allow Japanese corporations to hold general shareholder meetings without requiring anyone to physically attend.
By using bitFlyer, the application will be able to prevent vote forgery and manipulation and requires users to scan their My Number card (similar to the Social Security Number in the United States) for identification.
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The company is supposed to test its technology at its own shareholders‘ meeting on June 26.
Using blockchain to prevent vote tampering
Speaking to Cointelegraph Japan, Yuzo Kano, CEO of bitFlyer Blockchain, said that without blockchain technology, it is impossible to have a fair virtual shareholders‘ meeting.
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Kano stated that legitimate shareholders should be able to exercise their voting rights while ensuring that „there is no manipulation of the vote and its aggregation process“.
A fair shareholders‘ meeting also requires the ability to ensure that proxy forms are not manipulated in general or by a third party. Kano continued:
„It is impossible to change the records in blockchain and all interested parties can verify them. You can also see how certain proxy forms were exercised in the past in blockchain. Since the same electronic signatures are used every time, it is obvious if some third party uses a new one.
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On the transparency of the voting process, Kano said that „since all the results of the vote are recorded, we can always come back and check them later if there is a manipulation“.
The company has not yet received any concrete inquiries about bVote, but Kano expects demand for the application to grow as people’s lifestyles change and remote working and digitization accelerates due to the coronavirus pandemic.
On June 8, Coincheck, bitFlyer’s rival in Japan, announced that it has begun considering providing services to corporations for virtual shareholder meetings. Coincheck also aims to use blockchain to reduce the risk of manipulating voting rights, but full details of the offer have not yet been disclosed.