Russia’s National Settlement Depository says it has successfully finished developing and testing an e-proxy voting system running on a distributed ledger. The prototype is based on the NXT distributed cryptographic platform, and uses ISO 20022 international standard for messaging. NSD has been working on the project together with DSX Technologies. The project’s open-source code is available on GitHub.
E-proxy voting is an innovative technology for corporate actions processing that provides for electronic interaction between securities holders and issuers for the purpose of exchanging information and documents.
The existing e-proxy voting solution enables cascade messaging through a chain of nominee accounts, from the issuer to the securities holder and back. The NSD manages the database for the chain, ensuring that all voting instructions are properly submitted and accounted for. The blockchain-based e-proxy voting prototype enters the instructions into a distributed database which is accessible to all the members of the chain at the same time.
Sergey Putyatinskiy, IT director at NSD, explains: “During the testing process, we reached a submission speed of 80 voting instructions per second. We are currently aiming to increase the system’s capacity and to enable the support of new voting types. Our next step would be to subject our new prototype to legal and cryptographic expert evaluation, which will give us a more definite idea whether the prototype is suited for real voting.”