A blockchain built around verified identities

Anonymity is a key principle of many blockchains, but this ethos makes it difficult to meet compliance requirements around identity verification and to fulfill Know-Your-Customer (KYC) obligations. Polymesh streamlines this process by creating a single identity on the chain for each real-world individual or organization and then attaching attestations to their identity as needed. 

Verify your identity with polymesh

Polymesh identitiy

Polymesh builds identity into the core of the chain, bringing a number of key advantages.

Sybil resistance

Each individual or entity can only have a single identity, which prevents an attacker from creating many pseudonymous digital identities to gain undue influence over the chain.

Simplified compliance

Unlike on public blockchains, tokenholders on Polymesh can’t subvert rules by holding assets under multiple digital identities.

Known participants

Transactions need to be determined by known, trusted, regulated entities. As a permissioned chain, transactions on Polymesh are validated by verified capital market participants that meet specific criteria.

The challenge with identity on blockchain 

General-purpose, permissionless blockchains are typically built philosophically and technically for pseudonymity. This pseudonymity makes it very difficult to establish and validate identities in a way that would meet most regulatory requirements addressing identity. It is possible to add on identity-related solutions as a second layer, but this only increases unwelcome complexity in the end-to-end solution.

The Polymesh solution

Polymesh has an advantage over general-purpose blockchains because asset issuers and other financial intermediaries can examine the Polymesh blockchain to confirm questions regarding participant identities, assisting regulatory compliance. For example, token holders cannot subvert rules by using multiple identities to hold assets, as all users can act only through their on-chain identity and all on-chain identities are referenced through decentralised identifiers (DID).

Further, issuers and institutions do not need to re-identify users, nor do users have to re-submit their information. This streamlines the identity verification processes while simultaneously reducing costs. In effect, this purpose-built blockchain is more resilient and less vulnerable to attacks targeting its reputation system (i.e. Sybil attacks).

Two-step identification process 

Stage 1 - Verification

First, every user validates their identity through a basic customer due diligence (CDD) process that verifies their name, date of birth, and place of residence in real-time. Once complete, any accounts a user creates, or assets they hold or transfer, will be securely and confidentially connected to this identity.

Stage 2 - Attestation

First, every user validates their identity through a basic customer due diligence (CDD) process that verifies their name, date of birth, and place of residence in real-time. Once complete, any accounts a user creates, or assets they hold or transfer, will be securely and confidentially connected to this identity.

Polymesh unique identity system 

There is no prohibition against operating multiple Polymesh accounts with distinct Polymesh DIDs. There are, however, regulatory compliance obligations that fall on investors, depending on jurisdiction. Suffice to say that it is generally not permissible to use multiple accounts to obfuscate reportable holdings of a regulated security. Polymesh also provides a mechanism called the Polymesh Unique Identity System (PUIS) to self-report linkage between multiple accounts as a means of detection.

Get the details on exactly how Polymesh manages identity:
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