Nasdaq to use blockchain to record shareholder votes
Add shareholder voting to the list of applications for blockchain technologies.
Later this year, Nasdaq plans to record stockholders’ electronic votes on its own blockchain system for companies listed on one of its exchanges. By digitizing the entire process, it expects to speed and simplify the proxy voting process.
Blockchains — the best known of which is the public ledger of bitcoin transactions — are distributed records of events, each block in the record containing a computational “hash” of itself and of the previous block, so that all are connected like links in a chain.
A hash, or digest, is a short digital representation of a larger chunk of data. Hash functions are designed so that calculating (or verifying) the hash of a chunk of data takes little computing power, while creating data with a particular hash is computationally expensive.