Polymath is closing in on the launch of the first test network for its new blockchain – one designed to bring new safeguards for financial institutions working with security tokens.
With the Aldebaran testnet, the security token issuer is implementing a relatively new type of protocol scheme known as nominated proof-of-stake (NPoS), which the firm says brings “absolute transaction finality,” a factor “crucial” for the trading of blockchain-based securities.
With a launch date now slated for June 23, according to an announcement on Thursday, Aldebaran will allow testing of the permissioned chain, which aims to be an additional security layer allowing specific actions to be performed by identifiable participants on the network.
“Aldebaran is a major milestone and accomplishment,” Thomas Borrel, chief product officer at Polymath, said in a press release. “A year ago, we built an aggressive roadmap to deliver the capabilities required to satisfy regulators and institutions and give everyone equal access to economic growth.”
Polymesh on Aldebaran will address four “areas of concern” for financial firms dealing with blockchain securities: governance, including removing the legal complexities of blockchain forks; ensuring all parties have passed due-diligence checks; allowing users and trading data to remain private; and using automation to ensure regulatory compliance.
The testnet marks the first iteration of the new blockchain – first announced by co-founder Trevor Koverko at CoinDesk’s Consensus in 2019 – allowing it to be put through its paces and receive early feedback. It will also help the company build collaborations, Borrel noted.
Polymath’s existing platform has already been used to tokenize $2.2 billion in real estate by commercial property marketplace Red Swan, as reported in February. Previously issuing tokens on Ethereum, Polymath announced last November it would use Parity Substrate as the framework for Polymesh.
For Polymesh on Aldebaran, the firm is now looking for testers, with a mainnet release penciled in for some time in the first quarter of 2021.