Why a security-specific blockchain is needed, explained

The successful securities-specific blockchain fills all the gaps in the current Ethereum architecture by providing efficiency, automation, and transparency.

Aligning the operating blockchain with the needs of modern capital markets will require solutions for governance, identity, compliance, confidentiality, and settlement.To address these gaps, Polymath pioneered the creation of Polygon mesh, An institutional, public, and permissioned blockchain built specifically for regulated assets. In practice, the platform aims to solve these five challenges in the following ways:

• Require users to verify their identity with a verified service provider at the time of initial entry
• Automate asset compliance in a transparent and real-time manner to simplify its reporting and eliminate the need for complex systems
• Implement a confidential transaction workflow to allow secure mixing of encrypted certification and off-chain statements.
• Operates under the management of a main committee and a group of dedicated sub-committees
• Address the current probabilistic finality that prevents the technology from serving as a gold ownership standard

In short, a securities-specific blockchain will resolve these five key gaps in the Ethereum architecture. The security-specific blockchain will also provide greater efficiency, automation and transparency to the entire capital market. These three factors will significantly improve the cost and time of existing asset classes and processes. The result will be lower fees, new investable asset classes, and more exciting investor choices.

Polymesh was launched on October 28, 2021. Previously, more than 4,300 users successfully motivated the testnet. Users can now use the chain to create, issue, and manage security tokens, as well as participate in on-chain activities such as governance and mortgages.