Polymath Network: a protocol for financial securities tokens! The POLY cryptocurrency & decentralized platform helps launch tokenized securities on the blockchain with their KYC & AML solution.
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Number 7: What is Polymath?
In order to understand what the Polymath Network represents, it’s important to understand the meaning behind the word ‘polymath’. It describes a person who owns extended knowledge over several different subject areas and who might use that complex knowledge to solve particular problems. Since his interest spans such a broad array of domains (including painting, science, engineering, anatomy, mathematics and many others) Leonardo da Vinci is one of the best examples of a polymath. Similar to the Renaissance genius, the team behind the Polymath Network wants to use its shared knowledge as a tool for solving problems. Polymath is a decentralized platform that aims at bridging the gap between the blockchain and financial securities. The platform is operated on the Ethereum blockckchain and will facilitate the primary issuance and secondary trading of blockchain securities tokens. It uses a blockchain protocol that offers various tools designed to coordinate and stimulate participants to collaborate and launch financial products on the platform.
Number 6: Why Was Polymath Created?
Governments around the world are still struggling with creating regulatory structures in the crypto-space. Over $3 billion U.S. were raised in recent years by hundreds of organizations using the ICO model. Naturally, with the circulation of such a massive amount of money, this non-traditional form of financing caught the eye of various government agencies, who started analyzing and questioning its legality. If such an agency—like the SEC for example—deemed that the tokens for sale actually represent securities, it means they're subject to the agency’s regulation. Many organizations holding ICOs fervently try to avoid having their tokens identified as securities, as this can come with various restrictions and limit how the tokens can be exchanged and who can invest in them.
Enter Polymath: the platform features a baked-in KYC solution and before an issuer can sell a security token, they must find a legal delegate to ensure that all the regulatory requirements are met by the offering. Polymath aims to do for projects based on securities tokens what Ethereum did for ICOs and app tokens, and Polymath believes that Security Token Offerings (or STOs) will be the next big trend in the crypto world.
Number 5: What Are Security Tokens?
Before we move any further, there's one matter that might need some clarification, and that is: what exactly are securities tokens? There are basically two distinctive token classes sold in ICOs, and these are utility tokens and security tokens. Utility tokens offer future access to a service or a product and may be compared to software licenses or gift cards. Security tokens basically represent an investment contract and the motivation for contributors to acquire them is given by the anticipation of future profits in the form of revenue share, dividends, or price appreciation. A Polymath security token is an ERC20-compatible token that represents a security, which can take the form of equity in a hedge fund, bonds, trust, debts or real estate. Unlike utility tokens (which can lose all their value and only grant you access to a particular service), security tokens can be backed by real assets and protect investors from fraud by following well-established regulatory requirements.
Number 4: What are the Advantages of Using Polymath?
Polymath basically opens up the blockchain to securities offerings that are compliant with government laws and regulations. Polymath refers to its platform as a “one stop shop for securities token projects.” Its users are provided with a decentralized protocol that enables them to easily trade security tokens in a completely legal manner. It also features a privacy module enabling institutions and investors to authenticate their residency, identity, and accreditation status before participating in any of the security tokens offerings. Issuers may also legally nominate delegates to bid on their behalf on new offerings in a regulated manner. The issuance of new security tokens is also facilitated. Polymath matches issuers with developers who can translate the parameters of their security offering into secure code that generates ERC20-compatible tokens. Moreover, Polymath boasts a system that can be tailor-fitted to suit the needs of its users. Its parameters are customizable based on the needs of participants, marketplaces and assets.
Number 3: How Does Polymath Work?
Polymath has a layered structure that’s made up of four key components. The protocol layer, which comes with a decentralized shareholder registry, is tasked with taking care of the system’s computational aspects. Its framework has built-in KYC and AML accreditation, and the system runs through the use of smart contracts. The Application Layer enables interested parties to quickly create their own securities-backed tokens and even offers a ‘Create-A-Security-Token Wizard’ to facilitate the process. The third key component is the Legal Layer, which offers a number of tools that interested parties can use to check if their tokens fulfill the necessary compliance and regulatory standards. The final component is the Exchange Layer, also described as a ‘closed-ended KYC compliant on/off ramp’ providing its users with instant liquidity options.
It’s worth mentioning that when it comes to liquidity, Polymath aims at becoming the world’s first Security Tokens-only exchange. The system created by Polymath cuts out the middleman and agencies that employ expensive, complicated and slow auditing systems. Polymath assists through the entire legal process and improves on the accountability, auditability and security of the securities market. It also adds a much-needed degree of transparency, since all transactions take place openly on the blockchain.
Number 2: What Powers the Polymath Network?
All transactions in the Polymath ecosystem are governed by its native token POLY, a standard ERC20 token that's embedded with specific requirements allowing for use only among verified participants. There are five central participants that provide an essential aspect of the process, each of them being incentivized along the way. Investors are those who want to purchase or trade security tokens, and will pay a POLY fee to interact with the network and for KYC and AML verification. Issuers are those that want to sell security tokens; they will pay a POLY fee to create and issue the tokens. Legal delegates place bids based on the on-chain restrictions, and may also act as off-chain representatives in order to assist issuers in meeting the compliance requirements. KYC Providers are tasked with validating the participants’ real identities and with ensuring that investors are properly accredited. Lastly, developers are the software engineers rewarded with POLY for continuously evolving the network. They create and review initial offering contracts.
Number 1: Who is Behind Polymath?
The CEO of the Polymath Network is Trevor Koverko, a man with two successful Silicon Valley exits to his name. Koverko co-founded eProf.com, an online education platform in 2010, and he's also the founder and CEO of DAI or Digital Assets International, a worldwide leading private equity firm with a focus on acquiring ultra-profitable websites. DAI is also involved in blockchain research, software development, and cryptocurrency investments. Koverko started in Bitcoin in 2012 and & was an early Ethereum investor. Chris Housser is Polymath's co-founder. As a Toronto lawyer with practice in commercial litigation & securities, he was also a 12-year Canadian Forces Infantry Leader with service in Afghanistan. Polymath's legal team is Perkins Coie LLP, which is the world’s largest legal practice with a focus on cryptocurrencies, while project advisors include Ethereum co-founder Anthony Di Iorio and Bruce Fenton of the Bitcoin Foundation.
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