Corporate governance systems in blockchain

Corporate governance systems in blockchain are one of the topics that are gradually becoming popular, the idea is to transparently facilitate different processes that investors, partners and other participants in companies have.

The first thing to remember is that blockchain works as an immutable layer of information, it is a database that allows us to have 100% security and reliability of certain aspects of the information it contains, since anyone can access it.

You can be confident that no one has modified that information for their own benefit.

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An example of how this would work is in the company’s voting system, it is impossible for investors and partners to know if all the votes have been taken into account, that the weight of their decision based on their participation is respected, that the information has not been manipulated for the benefit of someone, since a few have control over the data, there is no way to verify its authenticity.

Using blockchain as a solution would be to implement a system with “voting tokens”, using them to register the votes in the blockchain as a transaction. As everyone can access the information they can verify the results, also the number of existing participants.

How does it work? The company discloses different blockchain addresses to which participants can vote, each vote representing a different decision. For example, “yes or no” in x proposal. In this case, two addresses of blockchain and each one would represent the yes and the no options.

Those who own the token send a transaction from their wallet (an application where you can save cryptocurrencies and tokens) to the address that represents their decision and that way the participants have 100% certainty that nobody could manipulate the result. To verify you just have to access any “blockchain explorer” on the web, find the addresses and see the number of transactions they received.

Another way to facilitate the management of shares for investors and partners is the creation of security tokens. They are representations of the shares or participation which can be sold or purchased on different platforms or crypto exchanges. This greatly facilitates liquidity for both the seller as the buyer, eliminating intermediaries and reducing costs.

We can also facilitate the payment of dividends using a smart Contract, allowing automation, the smart contract can detect who has tokens and how much, and sending the payment that corresponds to each of the owners.

There are currently security tokens that are regulated by entities such as the SEC, in the United States and other countries that have created the regulatory framework for these types of assets.

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Although nobody has fully integrated a 100% blockchain governance system, by small steps, it has been defining better ideas about how to implement them more efficiently and at a lower cost.

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