The Polymath project aims to "help enterprises issue security tokens on a blockchain". As a company, Polymath has built some of the most prominent token standards on the Ethereum blockchain.
Commonly referred to "The Security Token Standard", the ERC-1400 library of standards comprises multiple innovative sub-elements such as the Partially Fungible Token (ERC-1410), Core Security Token (ERC-1594), Document & Legend Management (ERC-1643), and Controller Token Operation (ERC-1644) standards. It allows features such as whitelisting & blacklisting, and the use of legal documents for on-chain applications.
Polymesh is a blockchain structure that enables users to issue their own security tokens, built with confidentiality, identity, governance, and compliance in mind. Polymesh utilizes the Nominated Proof of Stake consensus mechanism.
Validators (i.e., permissioned entities) stake POLY tokens on the network and run authoring nodes. Nominators stake POLYX tokens on Validators, As a result, both are rewarded or fined by the network based on blocks being added to the chain and the fulfilment of their designated roles.