Polymath (Poly) White paper Introduction
What Is Polymath Network?
Polymath has built a security token platform, that uses their ST-20 token standard to ensure compliance with governmental rules and regulations regarding issuing digital securities. Polymath is similar to Ethereum, but instead of issuing utility tokens, they offer equity in a the cryptocurrency projects behind the token.
Polymath (Poly) White paper abstract
A form of blockchain fundraising called an Initial Coin Offering (ICO) has existed since July 2013. Over the last two years, the ICO model has been used by hundreds of organizations to raise more than $3 billion USD. Government agencies are now analyzing the securities implications of this non-traditional form of financing, with potential consequences for ICOs that violate securities laws.
In this paper we present Polymath, a protocol to facilitate the primary issuance and to restrict the secondary trading of blockchain security tokens. Polymath uses a blockchain-based protocol that provides a suite of tools to coordinate and incentivize participants to collaborate and launch financial products on the blockchain.
By creating a standard token protocol which embeds defined requirements into the tokens themselves, these tokens can only be purchased and traded among verified participants.
The Polymath Solution
The Polymath platform opens up the blockchain to legally compliant securities offerings with a network of services designed to lower associated transaction costs over time.
At a high level, Polymath:
1. Provides a decentralized protocol for trading security tokens.
2. Enables individuals and institutions to authenticate their identity, residency, and accreditation status to participate in a wide range of security token offerings (STOs).
3. Allows legal delegates to bid on new issuances to represent issuers on offerings to be done in a regulatory compliant manner.
4. Matches issuers with developers who can translate issuers’ Security Offering parameters into secure code that generates ERC20 compatible tokens.
Polymath’s system can be modeled as tools for a set of Participants, Assets, Marketplaces, and Processes.
Read the Polymath White paper pdf here:
Polymath Whitepaper
