Polymesh (POLYX)

About Polymesh (POLYX)

Polymesh (POLYX) is a permissioned blockchain built specifically to handle regulated assets. Its goal is to modernize outdated processes and introduce new financial instruments by addressing key issues in governance, identity, compliance, confidentiality, and settlement. POLYX serves as the native protocol token of Polymesh, used for staking, securing the network, paying transaction fees, and participating in governance decisions. By using Polymesh’s architecture, the platform can record security token transfers while removing the need for third-party verification of ownership, helping bridge the information gap between token holders and issuers.

How Does Polymesh Work?

Polymesh operates using a nominated proof-of-stake (nPoS) consensus mechanism, which incentivizes both node operators and stakers to work together in guiding the evolution of the chain. This system aligns the economic interests of both parties through staking rewards and penalties in POLYX. The consensus mechanism dictates which blocks are added to the chain and defines roles, rules, and incentives within the network. Stakers, who are verified POLYX holders, can back selected node operators with their POLYX tokens. Both node operators and stakers are compensated or penalized based on the operator’s ability to maintain their node according to Polymesh’s rules. The platform also incorporates built-in financial primitives that allow for cost-effective operations on the blockchain.

Potential Use Cases for Polymesh

Polymesh addresses critical issues such as rule enforcement, identity verification, regulatory compliance, data privacy, and transaction finalization. This makes it an ideal platform for regulated financial instruments. Developers can create decentralized applications (dApps) on Polymesh, expanding its potential use cases. While the blockchain is particularly designed for security tokens, Polymesh also supports stablecoins, which can be pegged to various fiat currencies. These stablecoins are issued by authorized, well-capitalized third parties, enabling efficient on-chain activities and streamlined cash distributions. With its focus on identity and compliance, Polymesh provides a secure platform for financial instruments that require regulation.

History of Polymesh

Polymesh was developed by the Polymesh Association, a team of industry professionals with expertise in blockchain and tokenization. The core team includes:

• Chris Housser (Head of Strategy)
• Adam Dossa (Head of Blockchain)
• Graeme Moore (Head of Tokenization)
• William Vaz-Jones (Head of Partnership Development)
• Robert Jakabosky (Head of Applied Blockchain Research)
• Francis O’Brien (Head of Developer Relations)
• Nick Cafaro (Head of Product)

The project was created to overcome the limitations of general-purpose blockchains like Ethereum, which are not fully suited for security tokens due to issues with scalability, privacy, and regulatory compliance. Polymesh aims to fill this gap by providing a blockchain tailored for regulated assets. The Polymesh Association’s deep involvement in the ERC-1400 standard for security tokens (proposed by Polymath) helps ensure a balance between global accessibility and the regulatory needs of financial institutions.