BRICKBLOCK
Brickblock is a new blockchain solution in investing in exchange -traded funds (ETFs) real estate funds (REFs),passive coin traded funds CTF and active coin managed fund(CMFs). Investing in Brickblock will be financially inclusive throughout all income classed reason been that via the efficient use of smart contracts,order and issuing fee can be decreased to a fraction of traditional cost. Brickblock seek to offer a system that is passively managed cryptocurrency baskets that will bring risk to a bearest minimum and high fees of actively managed coins funds by using liquidity provides,incentivized by arbitrage effect. Brickblock system is based on fundamental rule-based assets allocation rather than high risk contracts for difference(CFDs). It utilities the assets - first principle which incentivizes assets vendors to declare assest before receiving payment,hence bringing the risk to bearest minimum.
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CHALLENGES FACED AND HOW BRICKBLOCK TENDS TO SOLVE THEM
- COUNTER PARTY RISK:
A situation when the counter party doesn't have the required funds or assets to pay for a trade. It takes 3 days for clearing and settlement to be done with traditional assets trading. Brickblock solves the challenges by reducing counter party exposure from several days to less than minutes or to the length of a few ethereum blockchain confirmation.
2.HIGH VOLATILITY.
The volatility of cryptocurrency is very high to an extreme degree resulting from the fact that traditional economy have not fully embrace it,hence investors always disseminate their risk. Cryptocurrency serves as a store of value,while the usage of cryptocurrency as a medium of exchange is still at a premature stage,which in turns makes the escape of the volatility of its value not so possible.
Brickblock is able to tackle this challenge by enabling the procurement of real-world assest such as ETFs and REFs with Ethereum for instance. Brickblock design a simpleway to guide against volatile cryptoportfolios which classes of beta assests is low.
3.HIGH COST AND COMPLEXITY
In conventional stock trading there are some fees for consideration when purchasing real-world assest through a retail broker e.g broker assisted fee,trading fee,account maintenance fee,as one has to figure out the fees pertaining to which assest.
Brickblock is however able to ignore a number hird parties e.g clearing house and retail brokers via a high degree automation,blockchain technology and the use of smart contracts which enables reduction on fees related to buying and selling of real-world to fraction of traditional retail brokers.
4.TRADING RESTRICTIONS
The purchase of ETFs or REFs in some countries for instance is evitable and highly complex, these could however be as a result of non sufficient connectivity to worldwide.
Blockchain seek to offer the most affordable ETFs and REFs worldwide and prudent way of order execution as no bank account is required for trading global ETFs and REFs since no geographical boundary is required.
MECHANISM OF BRICKBLOCK
Brickblock designs the first model where user can invest without interuption,invest in real estate funds (REFs).exchange -traded funds (ETFs),passive coin-traded funds (CTFs) and active coin managed funds (CMFs) via a modernise process and have a notable lower cost than traditional investing.
Each fund on Brickblock platform is made up of its own "proof-of-assest" (POA)token and its own demoninations that can be traded in a fast,uncomplicated and cheaper than on conventional stock markets. There is absolutely no need or reason for investors to convert their cryptocurrency into fiat currency due to the fact that assests,POA tokens are backed,this also help reduce risk to some extent. Dividends and coupons will be transposed to tokenholders via self executing smart contract on the Ethereum network. Both the smart contract and POA is irreversible,secured in a cryptographic manner and apparent to all on Blockchain.
TOKEN MODEL
Brickblock is incentivised to set up the required quantity access token necessary to positively infuse the platform usability at the same time achieving profitability. Brickblock will be distributed in exchange for ETH and Bitcoin. The token will be withdrawn from the smart contract.
Website: https://www.brickblock.io
Twitter:https://mobile.twitter.com/brickblock_io
Reddit: https://www.reddit.com/r/BrickBlock/
Github: https://github.com/brickblock-io