The use and popularity of the tokens in the form of producing cryptocurrencies are very impressive. Tokens have played a key role in setting up ICO and RICO types. In this article, we introduce the voting tokens as a new utilization. These tokens can still follow the current token standards or for the most efficient use of them the new standards can be set. This article is written by Ms. Somayyeh Gholami and Mr.Mehran Kazeminia in English and Farsi version in December 2018.
Sometimes the usage of a particular technique or tool is far broader than its inventor intended. For this reason, practically developers often roll out new features, and it’s not unlikely that new functionalities will become the main feature of that technique or tool and the rest features be marginalize!
Token’s popularity in the form of producing cryptocurrency is very impressive. Perhaps for this reason, the fate of the tokens thus set from the outset that most of their features are neglected and practically they don’t have so much usage. Until today, security advancements and new Token standards have only focused on their original and basic usage.
The history of Token’s emergence and their basic and original utilization
The proposing of the ERC-20 by Fabian Vogelsteller is maybe known as the starting point for functional tokens into the Blockchain domain. Therefore practically programmers and developers have been able to create and launch their unique Tokens easily into blockchain of Ethereum since the late 2015's.Token transactions were also stored on the Blockchain of Ethereum, and tokens, unlike the cryptocurrencies, did not require dedicated blockchain. Of course, having no dedicated Blockchain was not the only difference between token and cryptocurrencies like Bitcoin or Ether, but the initial token also had weaknesses. For this reason, from the very beginning, a lot of efforts have been made to fix the flaws and enhance the security and use of ERC-20 tokens.
Another important issue is the ICOs (Initial Coin Offering), which instantly their concept tied to the Tokens and drew everyone’s attention. People could sell their unique tokens to all people around the world to fund their project! It took only a few days to launch an ICO technically, and the tokens purchased by the people had the chance to grow in the secondary markets and….. Everything was prepared for an exciting global experience and quickly we saw the multi-billion dollar trading.
Meanwhile, some ICOs have their own dedicated cryptocurrencies and do not offer Token, and some like the EOS network, only temporarily use ERC-20 tokens and … but anyway, along with these successes, unfortunately, we realized that the aim of more than half of the ICOs was practically a misuse of people’s trust. Usually, the main cause of these problems is the lack of public information, legislation and ICO regulation, but it is always possible to reduce the problems by developing software and setting up better frameworks. For example, Mr. Fabian Vogelsteller recently introduced a new framework for ICOs, which he claims is more transparent and responsible, and is called RICO. Responsible Initial Coin Offering Framework In this new framework, investors can withdraw at any different stages of the project and receive a refund.
The fact is tokens even before meeting acceptable standards were rapidly deployed in ICOs, a new billion-dollar business, and in this atmosphere it may be natural that the features and other functionalities are temporarily forgotten.
Search for more use
As you have noticed, only by a simple smart contract, a certain number of a unique token are produced and they can be immediately exchanged as a type of cryptocurrency. In many cases, even the value of tokens increases gradually in the next tradings. For all these reasons, the use of tokens for launching ICO or RICO or other financial exchange was welcomed. Meanwhile, some suggested the use of tokens for the information economy and subjects such as tokenized economy were also raised.
In all these cases, tokens indicate that a person has a tradable asset. This asset can be money, gold certificate, game items, or…… But the valuable possessions and assets of individuals can also be non-tradable assets, for example, social licenses are usually non-tradable assets. Now, the question is, can the tokenization of these types of assets be interesting and practical? In many cases, the answer is yes. But now, we will only discuss the voting tokens and we will see that the use of voting tokens is very practical and even amazing.
Smart contracts, Tokens and Voting
If you are familiar with smart contracts, you know that voting is one of the first topics and applications for these contracts. Even on the main site of the Solidity programming language, which is the main programming language for smart contracts on the Ethereum network, two examples are explained for the use of smart contracts, one of them is a voting system. Also, the code for these examples is included so that programmers can actually learn more about the features and code. Meanwhile, we should not forget that there are some issues anyway, for example in Ethereum network, voters must pay Gas for themselves, but even this problem has been solved in some way in the EOS network.
So, at first glance, blockchain technology does not require tokens to launch types of voting. For example, you can design a voting smart contract by creativity with different capabilities. So what are the voting tokens for us? The answer is that token can amazingly change voting to the tangible, practical and easy one. With the help of these tokens, you can order types of voting, for example, to a system or on a website, and immediately According to your order, you will receive all voting arrangements free or at a very low cost. You can even plan types of surveys after the elections.
Certainly, voting involves a very wide range of social issues. Voting can be used to select a student representative of a class or to elect a board of a company, and sometimes a referendum in a country with hundreds million population. However, in each election, voters, as well as candidates, have a certain definition, for example, it is stipulated that all students in a college may vote for a limited number of candidates. In fact, individuals will always be eligible to elect or be elected before voting. The eligibility regarded as permits can be considered as a kind of non-tradable assets. In this sense, we distribute tokens as a voting permit to voters so they can participate safely and easily in an election.
We will also see other issues, such as secret ballot, assigning more votes to some voters such as whom having more shares in a company, designing a survey during an elected representative term and… How to use voting tokens to vote very easy and low-cost?
How does voting token work?
The performance of these tokens is simple. Voting tokens are sent to voters as voting participation permit. These tokens are exclusively produced and distributed for a specific election, and precisely for the number of those who are eligible to vote for the election. After receiving the token, voters can send tokens during polling hours to only one of the candidates’ wallet which has been created in the name of each electoral candidate. Thus, at the end of the voting time, the definitive winner will be the one who received more tokens. If some of the tokens are not sent during the election, it means that some voters have not used their permit to vote, and of course, unsent tokens don’t have value anymore.
The user account or candidates’ wallets are always visible, but the votes of the participants will be secret, and certainly, there will be no flaw or tampering with the election. If voters have the right to vote based on their shares, they can easily receive more or fewer tokens regarding their shares. If a survey is considered in the future, surveying tokens can be sent alongside voting token from the very beginning. Even like the RICO method, you might design a way to get back a vote! In order to display the real-time popularity of elected representative during her/his term and… The networks such as Ethereum, where the cost of Gas is compulsory for voters, this Gas can be distributed with voting tokens, so voters have no payment for voting.
However, without the using of tokens, it would also be possible to design a voting system in decentralized networks and maybe even get the same results. But as mentioned earlier, the first feature of this plan is that for ordinary users, the concept of a token is very tangible and understandable. They will get their right to vote by receiving Token. And it’s just enough to ensure that the number of tokens produced is exactly the same as the legal number of voters, and hence no corruption can be possible. The other point of this method is that for all the small and big elections, a variety of voting tokens can be sent to the user’s account or candidates’ wallet. Just like having an email, people of the community have an election wallet to receive a variety of voting tokens in their wallet, and by sending the voting token, as easily as sending an email, they can participate in types of election. Let’s explain further these features with a hypothetical example.
An Example of VTS “Voting Token System”
One — Imagine a system or website for setting up a variety of voting options, which we call VTS shortly.
Two — All people of the society can always access to VTS and receive an account, including a wallet and an email.
Three — Individuals, institutions, and departments intend to launch any type of voting, by visiting the VTS, will first answer a few questions. The number and list of the account of all the participants of the election will be given the VTS. The names of the candidates and election items are specified. If they need the token for a midterm survey, they will notify. If the voting shares of participants in the election are different or ……, they will mention everything in the VTS questionnaire. In the end, the VTS fee is paid by the organizers, and at the same time, the VTS will start officially.
Four — In the beginning, the VTS makes a smart contract according to the requirements specification obtained by e-form information. This is a simple task because most of the programming codes needed to generate and distribute voting tokens and … are similar in all kinds of elections and VTS can do this automatically. Then, this contract will be registered and launched into the Ethereum blockchain network or EOS.
Five — According to smart contract, produced voting tokens are sent to the wallet of eligible participants of the election who will receive a link at the same time, through an email, which let them check all details such as registered blocks, copy of the registered smart contract and all needed information or any guidance.
Six — Participants can only send these tokens to one of the candidates during the polling time and the election winner will be identified in this way.
Seven — Individuals can participate in several minor or important election and varieties of surveys in a few seconds. Due to the using of Blockchain technology, the vote of the participants is secret and reserved so there is no concern for corruption, flaw, and tampering with the election.
Eight — The total cost of gas is paid by the organizer to VTS at once but even it can be paid in the form of Ether or in the other form by a “postal token” like a postage stamp which along with the voting tokens can be sent to the wallets of participants.
The community’s needs for VTS will increase over time and will extend from electing a representative of students to the elections and surveys of governments to run the country. Also, due to the ease, affordability, and reliability of the method, it will even meet new needs and further details in the surveys. This technique by using the advantages of Blockchain technology can be a platform for the development of democracy in today’s world.
The platform is ready!
For voting tokens, you can follow current standards or you can set the new standards for better and more efficient deployment, for example, RICO enables you to withdraw your votes over time …… Meanwhile, proper UI for end users of VTS is very useful in boosting voting tokens. The concept of the right to vote by receiving voting tokens is always welcome from users and even has a historical root. Voting Tokens are the indications of the non-tradable asset of the community.
Also, for individuals, the non-tradable assets can be considered as the token. If these assets, such as voting can form a social experience, these tokens also would be effective.
Also, do not forget that the use of tokens, even not limited to non-tradable and tradable assets! But the use of tokens can have other forms. For example, antiquities, the works of art of a famous artist or precious works of a manufacturer of watches or jewellery, etc., which are produced a limited number; tokens can play the role of legal document or license of anonymous ownership for buyers of products.
Unfortunately, these works of art and products are always at risk of being forged or stolen or transferred to other parts of the world. But usually, no one can steal them and their unique tokens at the same time! Meanwhile, these tokens can’t be forged. In Blockchain technology, according to the smart contract, the numbers of tokens, as well as production time of tokens, are precisely specified and even for a work of art or an antiquity, a unique token can be created exclusively on a specified date and it means that the absence of these tokens indicates the lack of proof of ownership.
In the end, we would appreciate hearing your opinion about the development types of blockchain tokens and their usage. We also hope that the content and ideas are interesting for you.