Vote technology firms touting blockchain advancements have struggled to convince municipalities to adopt their products but have had success with private-sector clients. AP
Vote technology firms touting blockchain advancements have struggled to convince municipalities to adopt their products but have had success with private-sector clients. AP
Vote technology firms touting blockchain advancements have struggled to convince municipalities to adopt their products but have had success with private-sector clients. AP
Vote technology firms touting blockchain advancements have struggled to convince municipalities to adopt their products but have had success with private-sector clients. AP

Blockchain voting faces uphill battle in push for election security


Cody Combs
  • English
  • Arabic

The seemingly boundless enthusiasm for blockchain technology has yet to spill over to those conducting elections around the world.

"It's one of those industries where it doesn't matter how good of a job you do, somebody can just arbitrarily say 'fraud' and it just scares people off," said Pete Martin, founder and chief executive of Votem, an election management company that uses biometric and blockchain methods that it says can make voting easier and more inclusive.

For the 2024 US presidential election, unlike the 2020 poll, Mr Martin said Votem doesn't have any state election boards or municipalities using the company's software to allow people to vote.

Votem's system, according to Mr Martin, allowed for people to submit their vote via patented smartphone software provided by the company. Those votes, in turn, would be stored as a block of data, simultaneously broadcast to a ledger validation system anonymously.

It is a potentially lucrative market. According to Virtue Market Research, the electric voting system sector could reach $1.7 billion in value by 2030.

That market size, combined with increasing concern over election security, has generated significant interest in alternative voting methods.

Votem was able to ride that wave to some extent, and secured technology award nominations and flattering media coverage. Yet turning those alternative voting methods mainstream has proved to be difficult in subsequent years.

In 2016, the company's platform was briefly used in Washington, DC and Montana for recording primary and general election results. It also had success pitching and selling its voting technology to labour unions, private businesses and other organisations that routinely hold elections.

The Rock and Roll Hall of Fame and Museum in Cleveland also used Votem's technology following several years of complications involving music artist inductee elections.

That success, combined with the initial surge in blockchain technology interest, prompted Votem to buy another voter technology company, Everyone Counts, back in 2018.

Yet only several years later, Mr Martin had to restructure the company and layoffs ensued as the lucrative municipality election bodies didn't adopt its much-touted voting technology.

Pete Martin, chief executive and founder of Ohio-based Votem, says the company provides secure, transparent and auditable elections with the help of blockchain and other technology. Photo: Votem
Pete Martin, chief executive and founder of Ohio-based Votem, says the company provides secure, transparent and auditable elections with the help of blockchain and other technology. Photo: Votem

Mr Martin said despite the popularity and proof of concept with regard to decentralised and unalterable databases, which make up the backbone of blockchain technology, there is still fear among many voters and officials who make decisions about election equipment.

"People don't trust software that they don't see," he said, explaining why there is still ample scepticism over blockchain voting platforms. "You have some very authoritative people saying, 'don't trust this, only trust a physical piece of paper that you can mark,'" he said, referring to proponents of physical ballots.

While the overall blockchain voting sector may seem nascent, Votem is far from being alone in the space. Voatz, based in Boston, touts a similar version of the technology.

Using the company's smartphone app in areas where Voatz is implemented, members of the electorate can use their mobiles to vote, and then a paper ballot is generated at the local jurisdiction for tabulation.

According to Voatz's website, its technology has been used to conduct more than 130 elections for government bodies, union elections and professional associations, but it still hasn't had much mainstream success in terms of much-anticipated elections like the US presidential vote.

The website goes to great lengths to debunk the notion that the Voatz platform is similar to the idea of internet voting.

"Internet voting generally refers to the submission of a ballot on a website from a personal computer (PC). This method is highly insecure, as it can be difficult, or even impossible, to detect whether a PC has been compromised," a statement reads.

"In contrast, Voatz is a mobile application that can only be downloaded to recently manufactured smartphones. These phones need to have several advanced security mechanisms, including fingerprint and facial recognition, which Voatz uses for secure voter identity verification and ballot submission."

Several years ago in West Virginia, 24 counties in the state used Voatz for a pilot programme for active military and overseas voters to use blockchain technology, but the company failed to secure long-term commitment from the state amid concerns from various researchers and election experts.

Voatz, a Boston-based company, says its biometric and blockchain-enhanced voting platform can ensure ballot security. Photo: Voatz
Voatz, a Boston-based company, says its biometric and blockchain-enhanced voting platform can ensure ballot security. Photo: Voatz

In 2018, a report from the National Academy of Sciences, Engineering and Medicine titled Securing the Vote: Protecting American Democracy, didn't mince words about efforts to use technology for elections.

"While the notion of using a blockchain as an immutable ballot box may seem promising, blockchain technology does little to solve the fundamental security issues of elections, and indeed, blockchains introduce additional security vulnerabilities," the report read. While blockchain proponents often boast about decentralisation, that very idea goes against the grain of how elections work, it added.

"Public elections are inherently centralised ... requiring that election administrators define the contents of ballots, identify the list of eligible voters, and establish the duration of voting."

The authors of the report also pointed out that the software required to examine the postings on blockchain could become compromised or might be inadvertently flawed. "If such software is corrupted, then verifiability may be illusory," it said.

There is also the overall notion that paper ballots can't be hacked. Yet Mr Martin said such a system can be burdensome for those who need to vote in absentia, or those who might have physical or visual disabilities, among other factors.

"You bank online, you fill out your taxes online and that still makes a lot of sense, right?" he said, when asked about critics of blockchain-based voting platforms. "The politicians making the laws, they don't understand this stuff ... it's so technical to them so they're thinking, 'let's just do paper ballots. It [voting systems] is a very tough industry, and not just in US but around the world."

Meanwhile, as more than 100 million US citizens get ready to vote in the coming presidential election, exactly how they vote will depend on factors such as in which county, city and state they reside.

Some will use optical scan machines, others electric console systems and some will use postal ballots. Potentially complicating matters is that each jurisdiction might have its own method of counting the votes.

In a recent ruling in the state of Georgia, the decision was made to require the hand-counting of ballots on top of the automatic machine counting that takes place.

The move generated controversy among some who found the decision to be superfluous and potentially burdensome, while others insisted it was necessary to ensure the integrity of the vote.

Regardless, over at Votem, Mr Martin said the entire scenario proved his main point, that there has to be a better, more efficient and more inclusive way to hold elections.

"We kind of joke that mobile [smartphone] voting is 10 years away and we've been saying that for 20 years," he said. "We always say that when Gen Z essentially starts running the country, that's when mobile voting will happen.

Votem has pivoted away from purely mobile voting technology and instead is focusing on what it calls FastPass voting, which would allow people to mark their ballots on phones, but also use a QR code to print off their ballot at actual polling stations, potentially reducing confusion with physical ballots.

"You just walk over to the tabulator, stick it in the scanner and you're good to go," he said, comparing it to the process of preordering food from restaurants, also noting Votem's approach would allow for an audit trail to prevent any vote count discrepancies.

"We really want to push it out in the midterm elections in 2026," he said.

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Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.

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Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.

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UAE currency: the story behind the money in your pockets
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Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)

Email sent to Uber team from chief executive Dara Khosrowshahi

From: Dara

To: Team@

Date: March 25, 2019 at 11:45pm PT

Subj: Accelerating in the Middle East

Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.

Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.

I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.

This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.

It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.

Uber on,

Dara

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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The biog

Family: Parents and four sisters

Education: Bachelor’s degree in business management and marketing at American University of Sharjah

A self-confessed foodie, she enjoys trying out new cuisines, her current favourite is the poke superfood bowls

Likes reading: autobiographies and fiction

Favourite holiday destination: Italy

Posts information about challenges, events, runs in other emirates on the group's Instagram account @Anagowrunning

Has created a database of Emirati and GCC sportspeople on Instagram @abeermk, highlight: Athletes

Apart from training, also talks to women about nutrition, healthy lifestyle, diabetes, cholesterol, blood pressure

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HIJRA

Starring: Lamar Faden, Khairiah Nathmy, Nawaf Al-Dhufairy

Director: Shahad Ameen

Rating: 3/5

Safety 'top priority' for rival hyperloop company

The chief operating officer of Hyperloop Transportation Technologies, Andres de Leon, said his company's hyperloop technology is “ready” and safe.

He said the company prioritised safety throughout its development and, last year, Munich Re, one of the world's largest reinsurance companies, announced it was ready to insure their technology.

“Our levitation, propulsion, and vacuum technology have all been developed [...] over several decades and have been deployed and tested at full scale,” he said in a statement to The National.

“Only once the system has been certified and approved will it move people,” he said.

HyperloopTT has begun designing and engineering processes for its Abu Dhabi projects and hopes to break ground soon. 

With no delivery date yet announced, Mr de Leon said timelines had to be considered carefully, as government approval, permits, and regulations could create necessary delays.

Updated: September 25, 2024, 7:40 AM