Security tokens are a type of financial instrument that possess real-world value. Security tokens are usually issued on blockchains for better regulation. The tokenization process of crypto securities is one of the biggest growing markets and with higher transparency and security, the market has the potential to grow even more.
Concept of POLYX
POLYX can be ideally described as an exchange platform in the crypto world. Crypto users use it to trade, receive and send multiple digital assets with premium encrypted safety. Through this platform, users can deal with crypto assets like Litecoin, Bitcoin, Ethereum, and several others. Currently, POLYX is operating in two primary sectors – FinTech and BlockChain.
The objective of Polymesh – (POLYX is the name of the security token of Polymesh) is to improve the security token industry panoramically. Not only security but also amplifies the staking and governance within the blockchain ecosystem. The typical definition of Polymesh describes it as the first layer of a public permissioned blockchain exclusively curated for the security tokens.
These tokens are like digital contracts. Since POLYX is a public permissioned blockchain, it is virtually open for the world. But, any random unauthenticated person cannot access it. A security verification process is involved. Node operators are the ones usually taking care of the POLYX and they should typically be licensed entities. In a nutshell, POLYX creates an authentic permissionless private network for users; the best part is that the network is transparent.
Working Model of POLYX
It is mostly the node operators who work for the security of the blockchain network through POLYX. The node operators’ task is to validate the blocks and earn rewards in POLYX. Apart from node operators, the stakers are also involved in the chain.
The stakers as their name suggests, stake their POLYX over the node operators such as the node operator’s chances of validating increases. At the end of the process, both the node operators and the stakers benefit. The former receives a commission of around 10% and the stakers collect the POLYX.
Polymesh is the host of a permissionless channel and they charge a fee for the same. Compared to various other networks, this one is nominal. However, if there is competition for space in the chain among the users, the fees are most likely to increase. The transaction cost of POLYX is quite affordable and consistent.
POLYX offers upgrades to a forkless architecture that is an on-chain model for governance. This democratic model enables stakeholders to resolve issues. The entire governance network is built over a Substrate framework. All the verified POLYX holders have a right to influence the working direction of Polymesh. Users have an active say in the governance of Polymesh. This is enabled by the Polymesh Improvement Proposal (PIP) process. PIPs are voted on upon approval; by the governing council
Creation and management of security tokens at a blockchain base level are one of the most prominent ways POLYX transforms the crypto industry. Automation through smart contracts makes the permissionless network more resilient and safer.
This, perhaps is the most vital concern that POLYX addresses. One of the primary ways in which POLYX revolutionizes the blockchain industry is by creating a strong hallow of security. It works on a unique protocol named MERCAT which stands for Mediated, Encrypted, Reversible, Secure Asset Transfers. The MERCAT protocol facilitates confidential transfers and trusted issuance of assets. It is beneficial for maintaining trade privacy. Polymesh is widely known for its non-compromisable transparency and compliance. Using Crypto and blockchain has always depended on security and POLYX is highly useful.
POLYX is one of the most trusted and unique ways to build a more secure token space. They are currently working on strengthening the non-fungible token (NFT) and stablecoin infrastructure implementation. The MERCAT protocol is a new horizon for improving the security structure of the Bitcoin ecosystem. For more information on this matter, users can always refer to the Polymesh SDK library and support channels created for the community.
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