Will Polymath be the Ethereum of Securities Tokens?

Polymath is a securities token platform that opens up the blockchain to legally compliant securities with lower transaction costs. Using blockchain and smart contract technologies, Polymath’s unique Security Token Standard Protocol (ST-20) enables securities issuers to create tokens backed by traditional financial assets like private equity, stocks, commodities, VC funds, real estate, royalties, and insurance.

Polymath is the first platform to enable truly legal ICOs in the form of securities tokens

Polymath – The Securities Token Platform

The Polymath platform is a tool that allows financial companies to create and issue their own tokenized assets.

At a high level, here are the main features of the Polymath project, as detailed in their whitepaper:

  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 is the first protocol platform that offers both KYC and legal compliance, which will be a massive value driver moving forward. Compared to Ethereum, Polymath is easier to use and also offers liquidity support, which ETH does not.

POLY Token Use Cases

Issuers: are able to post bounties in POLY tokens to encourage legal
delegates and developers to bid on providing services towards the issuance.

Developers: earn POLY for creating STO contracts. Developers are required to have these POLY fees locked up for a minimum of 3 months after a security token offering.

KYC Providers: pay a POLY fee to join the network. This fee is to identify legitimate KYC providers who can make this back in fees earned over time from investor verifications.

Investors: will be required to pay a POLY fee to KYC providers for verification.

For Legal Delegates: Legal delegates are able to earn POLY tokens by (i) proposing bids on security token issuances and (ii) being selected by the issuer to take responsibility for the issuance.

Polymath’s Team

Polymath has strong advisory board with backgrounds in blockchain technologie, large corporations, and financial institutions. The CEO, Trevor Koverko, is a silicon valley entrepreneur with a strong track record of successes.

Polymath Token: The Numbers

Polymath didn’t have a public ICO, but instead had an airdrop of 250 POLY per participant to expand the userbase beyond the private investors who first funded Polymath. 1,000,000,000 POLY tokens were pre-mined, and none more will be created moving forward.

The POLY token currently trades at around $1.00 (~$240M market cap), with a circulating supply of 239,570,250 and a total supply of 1,000,000,000 POLY. As of the time of writing, POLY is ranked #86 on coinmarketcap

Polymath to the Moon

Polymath is trailblazing an exciting future for security tokenization. If Polymath can use their first-mover advantage to become the major platform for large-scale financial institutions and corporate entities to tokenize their assets, the POLY token should exponentially rise in value. There is a good chance yet for Polymath to become the Ethereum of securities tokens.

To the moon

As they say, to the moon! – HODL

 

Proof of stake (POS) cryptocurrencies

HODL your Proof-of-Stake (PoS) coins to validate, and earn crypto by PoS coins.The PoS concept is straightforward and easy for anyone with a laptop to do as opposed to buying the mining hardware you can find in your typical bitcoin mining farm.

PoS coins are also interesting because there is a growing trend in cryptocurrency market towards PoS coins. Even Bitcoin’s impending Lightning Network upgrade seems to forebode a PoS-like system, even though the main Bitcoin chain will continue to rely on PoW.

Proof-of-Stake is a much newer proposed methodology for achieving distributed consensus. The viability of network’s relying on PoS are not achieved by mining but rather by staking. Staking, simply put, is just when users hold their PoS-compatibile cryptocurrencies in a specialized staking wallet.

Staking achieves the same effect of mining (distributed consensus) without the need for expending exorbitant amounts of computing power and energy.

And if you “stake” your coins, you’ll be rewarded with crypto payouts on a rolling basis just as if you were a mining “winning” a block.

 

I was introduced to this concept by staking NEO (The Chosen One).

NEO

NEO is interersting because it uses something called a delegated Byzantine Fault Tolerance (dBFT). Disregard how confusing that might sound at first glance, and just think of dBFT as kind of like an optimized Proof-of-Stake system.

 

Lisk

Like NEO, Lisk uses a different kind of PoS. Lisk’s distributed consensus methodology is called delegated Proof-of-Stake, or DPoS for short.

This means that while staking is possible with Lisk, it’s only possible for the top 101 “delegates,” with these delegates being voted on and agreed to on a rolling basis by the community.

So, not everyone can stake with Lisk. You’ll need to crack the top 101 delegates for that. But the project still uses an incredibly interesting PoS model.

And with Lisk being akin to Ethereum but built atop the programming language JavaScript instead of Solidity, its potential impending mainstream use could have its dPoS system getting increasingly popular in the years ahead.

Stratis

Stratis is a C#-based crypto project that mined its first PoS block earlier this year in May.

As the Stratis team declared triumphantly at the time:

“This is the first documented and tested instance of a Proof-of-Stake blockchain block mined in C#. Now the developers will combine the full node with the wallet layer developed for Breeze, our full node with PoS will then be ready for a test release in approximately a week from now.”

PIVX

PIVX is a project that forked off of the DASH blockchain last year and has, unlike DASH, fully transition to the PoS distributed consensus system.

PIVX holders have the perk of not having any minimum or maximum cap for staking, too, so you can stake any amount of coins you would like to. To this end, they take the opposite approach to Lisk: anyone and everyone can stake.

Stakers get an annual return of around ~4.8 percent with PIVX.

OKCash

OKCash is an older cryptocurrency project, having been started back in 2014. They’re one of the “OGs” of PoS, as it were, and the project is orientated toward being a micro-transactions throughway.

They’ve got a pretty impressive annual staking return of around ~10 percent. That’s among the best annual returns you’ll find among any PoS coin right now.

All you’d need to do is move your requisite OKCash into a specialized staking wallet.

Many projects are already moving toward PoS, even though it’s a distributed consensus methodology that still hasn’t been widely tested at present.

ETHEREUM

If Ethereum’s shift to Proof-of-Stake goes off without a hitch and proves successful, the dynamic of PoS coins having a small overall sliver of the top 100 cryptocurrencies by market cap in contrast to PoW coins should forever change, to the extent that that “sliver” should become something larger.

ETH’s so-called “Casper” update is what will initiate the crypto’s evolution to PoS. Once this is completed, ETH holders will be able to stake their funds for recurring “dividends” of ether.

Right now, it’s definitely not set in stone how many ether will be required to stake. Indeed, there has been several numbers casually thrown around the community in recent weeks, but to be clear: nothing’s official yet.

Some of these numbers have been as high as needing 1,000 ETH to stake. Some projections are as low as 10 ETH. Another number you hear a lot is 32.

But don’t worry if you’re not an ether whale. Eventually you should be able to pitch in even small amounts of ether into staking pools to partake in the new model.

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