With Bitcoin [BTC] breaching its immediate resistance, the community is rooting for the largest cryptocurrency to breach the next resistance set at $8,000. This sudden pump in the prices of most major cryptocurrencies, especially BTC, was a hot topic at Consensus 2019, followed by the partnership between Charles Hoskinson, the CEO of IOHK, and Trevor Koverko, the CEO of Polymath.
The duo has come together for an initiative which aims at launching a Layer 1 security token blockchain called ‘Polymesh’. According to Trevor, there exists a gap in the market for a purpose-built custom blockchain for security tokens. Hoskinson noted that a normal public blockchain system is a homogenous system where regulators, issuers, buyers and sellers are subjected to the same rules and responsibilities. He adds on the design of the Polymesh:
“One of the first things we recognized is, you need to build a hybrid architecture. You need to say that there are going to be a certain party of the system which are permissioned and private, and certain parts of a system that are open and public and then you can assign different roles and responsibilities to regulators and other types of actors.”
By assigning the responsibilities to a part of the system, they would have the power to ‘maybe freeze’ a transaction, reverse it, and even view an audit trail, while the other part cannot. Hoskinson and Koverko noted that it was necessary for a system like Polymesh to exist for the Security Token Offering [STO] revolution. Hoskinson added:
“Furthermore there’s good evidence of that from just traction of STOs. There’s a desire to create liquidity, there’s a desire to create these assets, but where are they at CoinMarketCap, where are they at in terms of trading, they’re not where they need to be.”
Koverko and Hoskinson believe that this new system will benefit the STO revolution and thus, have to be built from the ground.