Polymath’s Polymesh Security Token Blockchain Leaves Ethereum for Substrate by Parity
The security token Polymesh blockchain will now list on Substrate after the issuer has withdrawn it from the Ethereum platform. Substrate was founded by Gavin Wood, who was ethereum's co-founder but now runs Parity Technologies. Polymesh is among the first tokens to make the switch. The issuer had indicated earlier that they would find a new blockchain platform for their security token.
Bjorn Wagner, the chief commercial officer for Parity Technologies, said that the firm would initiate business logic-features including runtime modules and smart contract communication on the base layer for Polymesh.
The head of the blockchain for Polymath announced in an email that their two security tokens native POLY token and ST20 would shift over to Substrate.
"This ability to focus on areas where we have deep domain experience whilst relying on the framework for core blockchain functionality such as finality and networking, allows us to build and iterate rapidly." —@PolymathNetwork on why #Substrate https://t.co/71qklFqJlk
— Parity Technologies (@ParityTech) November 21, 2019
Why Polymath Resettled
The main reason that contributed to Polymath resettling is the ethereum consensus mechanism known as proof-of-work. The mechanism only provides a statistical warranty of the transaction finality. Dossa stated, categorically, that Polymath required a different mechanism to achieve its purpose.
A significant issue that Dossa noted was block reorgs. Such activities are possible in a system that ethereum was using. In such a system, individual blocks that hold transactions are rewinded to reverse a deal that has been disputed. That was even after the knowledge that only one such occurrence has ever happened to ethereum during the 2016 hack.
Dossa added that for firms working with security tokens and other regulated assets, statistical guarantees were not adequate security.
Polymesh and Substrate
The executive said that they are also looking at the other candidates like Hyperledger Fabric and not just ethereum. Substrate was described as a “modular, flexible framework” by Dossa, and it was said to edge out the competitors because of the simplicity of creating smart contracts from the bottom at the ground level going up.
According to Dossa, security tokens ought to be flexible, and therefore, Polymath wanted to give its users an easy time and in the most flexible way.