What is Privateum and the PVM Token?

Ivan On Tech

Written by Ivan on Tech

October 13, 2021

Powered by the Binance Smart Chain (BSC) BEP-20 standard PVM token, Privateum uses “Ghost Network” technology to facilitate enterprise-grade private blockchain solutions. The Privateum network combines consortiums and cooperatives to provide legally secure, fast, and flexible services to harness the power of blockchain technology. Furthermore, the platform enables businesses both large and small to pool resources. Plus, members of the network gain access to a diverse range of partners and services worldwide.

In this article, we’re going to dive deep into the Privateum network. We’ll discuss the native PVM token, cooperatives, and consortiums. Plus, we’ll explore some of the technologies powering the private network. 

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What is Privateum?

Privateum is a global financial service provider and the “first legally protected assets management system”. The Privateum network provides participants with a secure private network that operates under a legal umbrella to facilitate private, fast, and non-traceable asset management and transactions. Also, Privateum solutions are simple to integrate into existing FinTech and legacy infrastructures. As such, the platform is promoting the mass adoption of blockchain and cryptocurrency on an enterprise level.

Blog Privateum

Furthermore, the Privateum network is an inclusive payments solution, providing business-to-business (B2B), business-to-consumer (B2C), and customer-to-customer (C2C) services. Plus, the platform uses a “union of cooperatives” business model to provide network participants with low-cost transactions and secure, efficient asset management services.

Moreover, the Privateum network makes it simple for participants to make the most of blockchain-based functions that operate under a robust legal framework. Forging partnerships between legal entities, financial services, and consumers, the Privateum network uses innovative solutions that facilitate the private exchange of goods, services, and funds on the blockchain.

Privateum Network Ecosystem

The Privateum network enables borrowers, lenders, banks, insurance companies, businesses, and retailers to join a global ecosystem. This ecosystem uses public blockchain technology or ‘consortium’ blockchain. By pooling resources and sharing information, members can gain access to crypto and blockchain integration solutions. In turn, these solutions enable participants to connect with better suppliers, manufacturers, and distributors while minimizing unnecessary costs. Moreover, the network’s architecture makes access to services fair and equitable for all users, big and small.

Blog Privateum Network

PVM Token

The native PVM token is a Binance Smart Chain BEP-20 token operating in conjunction with the Privateum wallet to access services throughout the network. The PVM token has a maximum supply of 80 million tokens. At the time of writing, the PVM token is trading at around $1.75, with a market cap of $140 million, according to CoinGecko. The project states that this supply should be ample for Privateum to achieve long-term global stability. However, in the case of a malicious attack on the network, more PVM tokens could be minted if the network agrees to do so.

Blog PVM Token

Pre-sale and private sales saw an allocation of 5.6 million PVM tokens. Participants of private sales received a price of $0.20 per token, with the PVM token selling at $0.35 during pre-sale events. Profits from these sales are used to create a minimally viable product (MVP) in the form of a native wallet. Plus, funds will also go towards marketing, concept development, and testing. Furthermore, PVM token holders who participate in these token sale events are subject to multi-stage token distributions to encourage long-term commitment to the platform.

The PVM token is a multi-functional token. One can buy and sell the token on the number one decentralized exchange on Binance Smart Chain (BSC), PancakeSwap. Also, the PVM token is exchangeable for the dollar-pegged PVMUSD token for use within cooperatives. Plus, the PVM token is essential for buying and selling goods and services, capital contributions, asset management, and redeeming contributions. This is possible via asset tokenization and minting of cooperative tokens.

Cooperatives

A key part of the Privateum business model is cooperatives. Privateum cooperatives define themselves as “a voluntary association of people with collectively owned funds, organized on the democratic principle of equality”. These cooperatives pool resources to support businesses and communities via mutual actions, typical in many sectors. This model enables participants to receive an equitable share of profits, rather than larger bodies gaining an exponentially larger portion of returns. Moreover, these cooperatives aim to benefit society as a whole rather than maximizing profits for shareholders.

Blog Privateum Cooperatives

The Privateum Cooperative aims to expand businesses by removing bureaucratic and legal barriers between producers and consumers. The idea behind the initiative is to create connections between businesses, individuals, and other cooperatives beneath the umbrella of a legal representative to “realize their economic, cultural and social needs”. Further, the platform operates with the ethos that “those who use an enterprise (the members) should also own and govern it”.

Participants of the Members network gain access to legally secured financial services, voting rights for investment initiatives, asset management programs, and dividends “based on patronage”. Also, members benefit from business expansion programs, support for local businesses, zero transaction fees, and a global network of partnerships. Plus, members can reduce operational costs and maximize group purchasing power by sharing services and resources. Furthermore, the multi-tiered cooperative model provides members with equal access across the board to legal support and developing technologies. 

Cooperatives provide financial opportunities to “balance the massive growth of inequality between the world’s rich and poor; an issue that, if not addressed, has major economic, social, cultural, environmental, and political consequences”. Cooperatives operate much like other businesses. However, they combine the best elements of both corporations and small business ownership. Plus, a board of directors votes to elect a manager to oversee operations within each cooperative.

Privateum Network Technology

The Privateum network is introducing multiple blockchain innovations into its leading decentralized payments network. Furthermore, protocols such as the Privateum Ghost Network use an infrastructure design made in cooperation with Legal Entity, partner of the Privateum network. The purpose of Privateum’s technologies is to alleviate the risk of identity fraud, hacks, or attacks. Moreover, the Privateum network technology claims to provide a reliable and secure way to restore access to funds for customers. Below, we cover the various elements of the Privateum network technology available in the project whitepaper. 

Blog Ghost Network

Ghost Network

One of the distinguishing features of the Privateum network is “Ghost Network”. Ghost Network uses a cloud-based private blockchain solution as an alternative to traditional peer-to-peer networks. Ghost Network provides enterprise-grade functionality and is resistant to attacks. Even if the network fell victim to an attack, attackers would be unable to make changes to transactional data or carry out fraudulent actions. Ghost Network retains an amount of decentralization without compromising on security, yet to become widely available in private blockchain solutions. Plus, the network can be restored and ready to operate quickly and easily without the risk of data loss or extensive downtime. 

Consortiums

Consortiums are permissioned blockchain networks that use a control layer to govern access. Further, consortiums do not use nodes for transaction validations, nor does any entity or network participant benefit from the production of blocks, transaction fees, or mining rewards. As such, private blockchains do not suffer from 51% attacks, unlike public Proof-of-Work (PoW) blockchains.

Private blockchains and consortiums are inherently centralized, making them unsuitable for many applications. However, consortiums offer businesses and enterprises safe, secure, and compliant distributed ledger frameworks that are sustainable.

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SafeTransfer

SafeTransfer is an “embedded internal mechanism” that guarantees transactions throughout the Privateum network. Also, SafeTransfer is a proprietary technology that operates on top of the Privateum private network to facilitate atomic transactions.

Proof-of-Authority

Ghost Network uses the Proof of Authority (PoA) consensus mechanism to deliver ultra-fast transaction speeds. Proof of Authority nodes effectively use their identity as a stake to earn the right to generate new blocks by proving that they have the authority to do so. 

Blog PoA

Whereas Proof-of-Work (PoW) mining typically requires technical competition, expensive hardware, and energy consumption, PoA requires very little computational power to validate transactions. As such, PoA is becoming a ‘green’ alternative for cryptocurrency mining. PoA Masternodes are required to facilitate core services throughout the network. Failing to do this can result in penalties or exclusion from the network.

Privateum Security

The Private network boasts a secure software development life cycle (SDLC) program that uses language-specific training to conduct security tests on existing applications and processes. Also, the network is subject to periodic reviews to maintain the highest standards of security. Furthermore, the network uses “threat modeling” to identify potential attack vectors and undergoes static application security testing (SAST) and dynamic application security testing (DAST) to ensure that best practices are upheld.

At rest, data security relies on an AES-256 symmetric key cipher for encryption. However, during transit, Privateum benefits from TLS 1.2 or higher data encryption with scheduled key rotation. As such, the data transacting throughout the network is highly secure and is inaccessible to unauthorized parties. Plus, the network adheres to SOC 2 compliance principles and NIST 800-53 security controls.

User identities help determine whether or not a user can gain access to the Privateum trustless corporate security infrastructure. Plus, permissions and privileges undergo constant monitoring and can be changed in a flexible, secure way. Moreover, Privateum’s security systems are “geo-redundant and load balanced”, meaning that systems can maintain constant uptime and data can be restored from numerous encrypted backups in different physical locations in the event of sub-system failure.

Exploring the Privateum & the PVM Token Summary

In summary, Privateum is at the forefront of private blockchain-based payments. The platform enables businesses to easily integrate blockchain technology into existing systems. Plus, the Privateum network empowers businesses by providing financial freedom via a global network of partners.

Using the Binance Smart Chain (BSC) BEP-20 token standard, the PVM token is a critical component of the Privateum network. Check out this guide if you want to learn more about BEP20 token development. The PVM token allows holders the opportunity to tokenize assets and mint cooperative tokens. Furthermore, the PVM token is the primary unit of exchange for transactions within the network. Holders can buy and sell products and services with the PVM token, alongside assisting in asset management and redeeming contributions.

Blog Privateum 2

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