Nearly two years after the release of our whitepaper, the Polymesh Blockchain has finally arrived. Polymesh is an institutional-grade, permissioned blockchain built specifically for regulated assets. It streamlines antiquated processes and opens the door to new financial instruments by solving regulatory challenges with public infrastructure around identity, compliance, confidentiality, governance, and settlement through key design principles built into the base layer of the chain, rather than as external add-ons.
When it comes to creating and managing digital securities, Polymesh’s specificity gives it—and the applications built on it—a distinct advantage over those leveraging general-purpose blockchains. The purpose-built infrastructure addresses the gaps in Ethereum’s architecture to align the functioning of the blockchain with the requirements of modern capital markets.
- Identity – Securities issuance and transfer requires a known identity, but most chains are built for pseudonymity. Polymesh uses a customer due diligence process to ensure all actors on the chain are verified and all transactions are authored by permissioned entities.
- Governance – Contentious forks in the chain present significant legal and tax challenges for tokens that are backed by real assets. Polymesh uses a governance model to prevent hard forks and guide the evolution of the chain.
- Compliance – Solutions built on top of general purpose blockchains struggle with processing the complex logic needed to comply with regulations. Polymesh builds compliance into the chain, enabling faster processing and lower protocol fees that can scale as demand and complexity of regulation grows. Additionally, a modular architecture empowers Polymesh to accommodate changes in regulatory or business requirements.
- Confidentiality – Most market participants need their position and trades to remain confidential, but anyone can see holdings on general-purpose blockchains. Polymesh has engineered a secure asset management protocol that enables confidential asset issuance and transfers.
- Settlement – Settlement challenges prevent the blockchain from serving as a golden record for asset ownership. By creating assets at the protocol layer, Polymesh is able to provide a simplified approach to transfers that provides instant settlement without prefunding, prevents unwanted airdrops through trade affirmation, and can offer deterministic finality.
Discover how Polymesh, as a purpose-built chain, is tailored to the needs of capital markets and securities. Join Polymesh today
© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.