There are many articles about institutional investors that are interested in the crypto market, wanting to take advantage of the fenomenal prices and gain profits, but for the regular people, the usual financial instruments are hard to access. Gaining access on the regulated exchanges is difficult, mostly because it involves many other intermediaries and actors like law firms.
Several blockchain startups have tried to facilitate access to different types of financial instruments and Brickblock is one of the most promising ones.
The idea behing the project is to combine digital tokens with the classic financial investments, especially real estate assets, so the investor is protected from the price volatility of the criptocurrency markets, but still keep the safety offered by the blockchain system and the smart contracts.
Brickblock is a platform that allows any interested party to invest in real estate assests and other types of financial instruments which were reserved for the institutional investors only. The available assests will be real estate funds (REFs), exchange-traded funds (ETFs), passive coin-traded funds (CTF) and active coin managed funds (CMFs) through a streamlined process, and with significantly lower costs than traditional investing.
Initially, Brickblock will include only European REFs, but in the first quarter of 2019 they are planning to extend to other areas like the US and Asia.
The platform is easy to use
1. Invest – The user can buy property shares using Ethereum, by sending ETH from the wallet to a smart contract that issues Proof-of-Asset (PoA) tokens in return.
2. Receive PoA-Tokens – once the asset is fully founded and the contract becomes active, the PoA tokens are transferred to the user. The tokens represent all the benefits of legal property ownership.
3. Earn passive income – the real estate asset generates passive montly profits (usually from rent) and the profits are sent to the Ethereum address.
The infrastructure is based on the Ethereum Bblockchain, and the platform is a descentralized app (Dapp) which generates smart contracts between the brokers/fund managers and the investors.
The brokers and fund managers listed on the platform are verified by Brickblock based on proof of residence, credit reports, and a criminal record. Then, based on their personal risk/reward ratio, investors can choose investments from Brickblock’s selection of available funds.
To ensure the safety of the underlying assets represented by the PoA token, a Digital Trust fund holds the exact same amount of fund shares as tokens issued. This securities account cannot be claimed by Brickblock, the broker or anyone else, and is protected by strict laws regarding trust funds, even in the case of bankruptcy. Only token holders may reclaim their fund shares, at any time.
The advantages offered by Brickblock compared to the classic exchanges are the lack of limits regarding the funds to be invested- the smart contracts handle micro as well as big investments thus offering lower fees and better prices than traditional banks. Users get an asset-backed token with a unique denomination after each investment. The tokens are easily tradable on cryptocurrency exchanges than on stock markets. Assets are also redeemable from the Digital Trust at any time.
Also, the transactions are secured and transparent on the blockchain and there are no geographical restrictions for investments.
There are 3 aspects of the Brickblock project
Tokenization Benefits – Tokenization revolutionizes investing through fast settlement times with low fees and without geographic restrictions, minimum amounts, or counterparty risk.
Brickblock Exchange – Brickblock is building the world’s first decentralized asset-backed token exchange. The exchange will be built on the 0x protocol and feature a FIAT payment gateway.
Brickblock Fund – an actively managed fund of crypto and real-world assets.
The smart contract ecosystem has been audited by Consensys Diligence and itțs also interesting that Brickblock is working with nakamo.to to identify scalability solutions, because they except to need them by the end of 2020.
Based in Berlin, the nakamo.to team is part of the IOTA Evangelist Network and is exploring how the Tangle Network can be used to go a step beyond blockchain in connecting the real-world with that of distributed ledger technology, and the implications that could have on traditional industries.
The team behind the Brickblock ICO has previous experience in blockchain technology and real-estate investments. The company is registered in Gibraltar, but most of the team comes from Germany.
Brickblock is led by Martin Mischke (Co-Founder) and Jakob Drzazga (Co-Founder).
Martin is the co-founder and ex-CFO of Bitwala, the popular blockchain-based payment service provider for remittance and international currency transfers. Mischke is also the co-founder of Bitcoins Berlin and runs Transistor, Germany’s largest fintech co-working space.
Drzazga, meanwhile, is a real estate developer who sees an opportunity to disrupt the real estate industry using a decentralized marketplace.
Token symbol BBK
Hard cap: $50 million USD
Max potential supply: 320,000,000 BBK
Max circulating supply: 145,500,000 BBK
Tokens for sale: 75,500,000 BBK
Token price: $0.60 USD
Technical specifications: ERC20 token
Token sale: May 9th – may 16th
Restrictions: USA, Canada, China, Singapore