It's not the voting that's democracy; it's the counting. Tom Stoppard
Those who cast the votes decide nothing, those who count the votes decide everything. Stalin
In more than two centuries no western democracy had any serious trouble arising from using ballot papers (by the way, what's wrong with them?) and to date most democracies of the world use ballot papers to elect their Parliaments and Governments.
However, hardware and software vendors are pressing for the use of electronic voting and Governments often endorse it.
Most people see electronic voting as a mere technical evolution of ballot paper voting and therefore they are confidently waiting for hardware and software that will make electronic elections as secure as remote banking, for example. They probably think voting is a simple transaction by which we add 1 to the electoral "balance" of our candidate, just the way we add money to someone's bank balance when we use our credit card. Unfortunately voting is not like banking because votes and financial data differ in the level of the secrecy they require and such intrinsic difference is the very reason why electronic voting is unfit for political elections in democracy and no technology can change this.
To see why electronic voting is not compatible with Democracy we need to go through a few basic concepts:
In Democracy the governmental power is transferred by counting secret votes during elections. To accept such transfer people and parties must be 100% sure that electoral results are fair and square: doubts about the legitimacy of the winner can damage the political life of the country and even bring riots and revolutions.
Votes must be forever secret from everybody because otherwise voters could undergo illicit pressure to vote according to somebody else's will. Criminals (and/or governments and/or politicians) have enough power to compell people to vote in a certain way.
Electoral procedures are obvioulsy setup and managed by large organizations which span all over the country and give contracts to private and public companies.
Many people and/or organizations are interested in falsifying electoral results to maintain or to get the governmental power. They can be highly motivated, well financed, sophisticated, and could be outsiders as well as insiders with full knowledge of the election system. These attackers could be political operatives, voters, vendor personnel, polling place workers, election administrators, foreign countries, international terrorist organizations, or just pranksters.
Sitting governments are in charge of guaranteeing the accuracy of electoral results and the secrecy of votes, but the social groups & the economical powers which are the base of any government have the obvious interest in falsifying electoral results and violating the secrecy of votes to preserve the power. They could also succeed thanks to the complete control they have over the electoral process.
http://www.electronic-vote.org/