Polymath Network (POLY) is a cryptocurrency that was created to bring traditional securities onto the blockchain. Securities are investments like stocks, bonds, and funds that are traded on formal exchanges. The goal of Polymath is to make it easier for companies to issue and manage securities on the blockchain.
Polymath Network is built on the Ethereum blockchain, which means it uses smart contracts to help companies issue securities. Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. They automatically enforce the contract once the terms are met, making them ideal for trading securities.
POLY is the native token of the Polymath Network. It is used to pay for transactions on the network, including the creation and management of security tokens. The issuance of security tokens involves a number of fees, such as legal and audit fees. POLY is used to pay for these fees, making it a utility token.
The Polymath Network also uses a decentralized exchange called Polymath DEX, which allows investors to trade security tokens. The DEX is built on the blockchain and is designed to be as secure as possible. It uses a system of validators to confirm transactions, which ensures that trades are legitimate and secure.
Overall, the Polymath Network is designed to enable companies to issue securities quickly, easily, and securely using blockchain technology. The use of smart contracts ensures that transactions are transparent and immutable, while the Polymath DEX allows investors to trade these securities in a secure, decentralized manner. The POLY token plays a key role in this ecosystem by powering transactions and paying for services on the platform.