At Brickblock, they strongly believe that digital currencies are the future and they won’t prove wrong. Brickblock is an inclusive platform that enables people from all income classes to diversify their crypto-portfolio with real-world assets like ETFs and REF without requiring them to exchange their digital assets into fiat currency. The platform also enables direct investment into both active and passive coin (i.e. cryptocurrency) funds.
The asset management and global custody ecosystem is highly complicated, extremely cost intensive and exceptionally exclusive. The experienced Brickblock team aims to change these market conditions.
Key advantages of Brickblock
Portfolio Diversification and Reduced Volatility
Since cryptocurrencies are extremely volatile and providing that their current limited acceptance in the traditional economy, investors have limited investment choices to disperse their risk. By enabling the direct purchase of real-world assets with Ethereum, Brickblock provides investors the simplest way to diversify and hedge against their volatile cryptocurrency portfolios with low beta asset classes.
Minimizing Counterpart Risk
The traditional asset trading process lasts three days, during the two of them, the deal between the brokerage and the counterparty is based on trust. By using the Blockchain for clearing and settlement processes, Brickblock reduces counterparty risk exposure from multiple days to less than 1 minute or more precisely to the length of a few Ethereum block confirmations.
Reduction of high costs and complexity in conventional stock trading
When an investors buys real-world assets through a retail broker has to consider about trading fees, broker-assisted fees, account maintenance fees, account transfer fees, selling fees and commission fees. Furthermore, investing small amounts is proved to be unprofitable due to the application of minimum fees. On the other hand, through the high degree of automation, Blockchain technology and the use of smart contracts enable Brickblock to bypass a number of third parties such as clearing houses and retail brokers. In addition, depending on the country of purchase, the specific asset and the investment amount, Brickblock is able to offer up to a 50-fold discount on the initial purchase price. In case, the asset sold on token exchanges, this discount could increase to 150-fold.
Remove trading restrictions
Investors to buy ETFs or REFs in some countries need expensive bank or broker accounts and are limited in their freedom to trade by local governments. Moreover, vastly different tax structures penalize worldwide investors. Brickblock abandons bank accounts to trade global ETFs and REFs since no geographic borders apply.
Safe crypto-basket investments Management
Today, there is no secure way to invest in a crypto-basket with full market exposure in exchange for a single token exists. Investors can only trust a fund manager to allocate his asset. For actively managed CMFs, Brickblock will enter legally binding contracts with fund managers, verify them thoroughly and implement a cryptographic audit structure.
How does Brickblock work?
Brickblock’s infrastructure will be implemented as a decentralized application (Dapp) and run on the Ethereum network. Broker-dealers and fund managers will be able to list their investment opportunities on the platform. To get on the platform they have to be thoroughly verified by Brickblock through proof of residence, credit reports and criminal record reports. Based on their personal risk/reward ratio, investors can then select an investment from the offered funds to add to their diversified portfolio. All fees, minimum investment pools, exchange rates, holding periods, net asset values, dividends or coupon payments will be listed clearly and thus, can easily be compared.
When a user sends Eth, the smart contract will issue Proof-of Asset (POA) tokens proportionate to the amount he invested. POA tokens entitle the token holder to all the economic benefits of ownership and generate passive income derived from the rents, dividends, and appreciation of the underlying asset. The profits are paid out to token holders’ MetaMask (Ethereum) wallets.
Tokens
There are three types of tokens, all of which implementing the ERC20 token standard.
Brickblock Token (BBT)
The total supply of the Brickblock Token will be 500 million. They will be only released during the contribution period in exchange for Eth and Btc. In case these tokens are stored in a special smart contract, their holder will receive a certain amount of Access Tokens per week until the Brickblock Tokens are withdrawn.
Access Token (ACT)
Access Tokens are similar to the concept of gas in Ethereum. The tip: They are important for the confirmation of transactions on the Blockchain. The transactions fees on the Brickblock platform are 0.5% of the transaction volume for each transaction and will be paid with Access Tokens. The Access Tokens which will be used for transactions will be burnt upon use.
Proof-of-Asset Token (POA)
For ETFs and REFs, POA tokens represent real-world assets in the form of securities. For CMFs and CTF, they represent a claim to coin funds on a secured trading account or in the custodians’ wallets. Investors for every fund of their investment will receive a POA token in return representing a legally enforceable claim to the underlying assets.
Our Take
Blockchain use cases are continuously expanding providing users a wide range of possibilities. Mr. Jakob Drzazga and Mr. Martin Mischke, co-founders of the Brickblock ICO, using it, are experimenting to revolutionize real-world assets industry investments. Through the effective use of smart contracts, many inherent and artificial inefficiencies of the property market, such as order and issue fees, geographical trading restrictions, counterparty risk and investor risk, can be mitigated. Brickblock sounds a brilliant idea that brings together the trading parts leading them to a mutual beneficial situation with the appropriate level of qualifications. To our opinion, this platform except from facilitating the trading on property will contribute significantly towards cryptocurrency adoption as it brings closer than ever the dream of acquiring a house to everyone reducing costs and bureaucracy.
So, let’s hurry! ICO starts in 13 days. Join the revolution of Asset tokenization!
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