What is Polymath Network?
Polymath provides technology to create, issue, and manage digital securities on the blockchain.
With Polymesh, they're building a blockchain specifically for security tokens.
They made confidentiality, identity, compliance, and governance key design principles in the architecture, working them into the ideation and the foundation of the chain, to create an enterprise-grade platform that drives the acceptance and adoption of security tokens.
Polymesh, a blockchain built for security tokens, live in March 2021. Security tokens have the ability to alter the financial landscape, unlocking trillions of dollars in asset value and investment, programmably automating operations, and driving new paths to liquidity.
For Polymath, the Ethereum blockchain has been an excellent starting point for security tokens, but is missing foundational elements that issuers and investors need, and that institutions and regulators require.
After having enabled the creation of 150+ tokens, their research and experience has shown that institutions need a blockchain built from the ground up with the specific requirements of securities regulations in mind. Polymath addresses this need with Polymesh, an enterprise-grade blockchain built for security tokens.
The foundations of Polymesh are focused on the most crucial regulatory elements, addressed by four key design principles meant to meet the demands of regulators and institutions, while unlocking the true potential of security tokens:
Protects information and ownership privacy while providing a mechanism for accurate reporting and auditing.
Ensures that no individual or entity can create, acquire, or sell security tokens without a validated identity. Securities regulation requires issuers, in certain instances (i.e. issuances under exemptions), to know the identity or confirm the profile of their investors prior to investment, and continuously monitor their suitability throughout their investment. Additionally, all Validators must be known, regulated entities.
Provides an operating and governance structure for how Polymesh is managed that allows for curation, and protects assets from contentious forks during network upgrades. This includes providing an established method for addressing and actioning proposals.
Provides financial primitives and smart extensions to manage security tokens across one or more jurisdictions and enforce appropriate rules for creating, issuing, and trading security tokens while also providing the capacity to manage necessary complex restrictions and distributions on-chain.Polymesh will use the Nominated Proof-of-Stake consensus mechanism with the finality gadget GRANDPA, and be supported by POLYX, the native protocol token.
With Polymesh, Validators stake POLYX on the network and run authoring nodes, Nominators stake POLYX on Validators, and both are rewarded or fined by the network based on blocks being added to the chain and fulfillment of their roles.
All POLY tokens currently existing on Ethereum will be able to be upgraded to POLYX at a 1:1 ratio. Structured in this way, we believe Polymesh will fill the gap between security token technology and the needs of issuers, investors, institutions, and regulators