BrickBlock - GIVING YOUR BENEFITS WITH TOKENIZATION ASSET REVOLUTIO...

Hello friends, this time I want to discuss about BRICKBLOCKS, hopefully this information can be useful for all of us.

What is BRICKBLOCKS ?

Brickblock is building a new blockchain-based solution for investing in exchange-traded funds (ETFs), real estate funds (REFs), passive coin-traded funds (CTFs) and active coin managed funds (CMFs).
Through the effective use of smart contracts, order and issuing fees can be reduced to a fraction of traditional costs. This will make investing in Brickblock more financially inclusive across all income classes. Artificial geographical trading restrictions, including the need for a bank account, can thus be eliminated. Counterparty risk can be reduced to mere minutes. Furthermore, we are introducing a new system of passively managed cryptocurrency baskets, which reduces the risks and high fees of actively managed coin funds by using liquidity providers, incentivized by arbitrage effects. Our system is based on an underlying rule-based asset allocation rather than high-risk contracts for difference (CFDs). It uses the asset-first principle, which incentivizes asset vendors to deliver assets before getting paid, thus further reducing investor risk.

Today, we live in a world full of technology, the world monetary system is evolving, In the crypto-economy may be one of the most volatile economies.
Investors can make 10x gains in one month only to lose it all the next month. Thus far, there have only been a limited number of ways to diversify crypto-portfolios to mitigate these risks.

Real diversification, across multiple asset classes, is essential for a well-balanced portfolio. Brickblock introduces the first platform where users can seamlessly invest in :

Real estate funds (REFs),
Exchange-traded funds (ETFs),
Passive Coin-Traded Funds (CTF)
Active Coin Managed Funds (CMFs) through a streamlined process and with significantly lower costs than traditional investing.

Each fund on the Brickblock platform has its own denomination and its own "proof of-asset" (PoA) token which, via established token exchange platforms, can be traded simpler, faster and cheaper than on conventional stock markets. Our asset backed PoA tokens empower investors to hedge the risk of cryptocurrencies in real assets without needing to convert their cryptocurrency into a fiat currency. All dividends and coupons are automatically transferred to token-holders through self-executing smart contracts on the Ethereum network. The content of the smart contract and the PoA token itself is unalterable, cryptographically secured and visible to everyone on the blockchain.
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.
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, after being thoroughly verified by Brickblock through e.g. proof of residence, credit reports and criminal record. 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. All investment opportunities will be carefully validated and audited by independent parties (such as EY [1]) to eliminate fraud.

MARKET ANALYSIS

Current Problems in the Market

High Volatility
Counterparty Risk
High Costs and Complexity in Conventional Stock Trading
Trading Restrictions
No Safe Possibility of Crypto Basket Investments

DIFFERENCE TO EXISTING PROJECT

Legal Enforceability of Claims

Brickblock enters a legally binding contract with every fund manager and every broker-dealer. In contrast to direct and trust-based investments in fund managers, this adds an additional layer of security for investors. On the Brickblock platform, every fund manager has a direct liability to the investor, which is enforceable through legal action.

Full Market Exposure

We believe that CFDs and other derivatives rely too much on trust and moderate price trends. In the world of cryptocurrencies, where flash crashes and price movements of >200% on a single day are a regular phenomenon, we consider CFDs no suitable instrument for mid- and long-term investments. Thus, Brickblock only allows physical shares, commodities and currencies instead of betting on derivatives.

Escrow-backed Security for Investors and Brokers (asset-first principle)

Brickblock’s smart contracts will only release investors’ funds to the broker-dealer after the broker-dealer transfers the assets to the digital trust fund. This represents a new way of conducting clearing and settlement. Through automated smart contracts, the broker-dealer receives the investors’ funds immediately after transmitting the assets. Initially, until new broker-dealers trust Brickblock’s asset-first smart contracts, Brickblock will deposit the investor’s funds in escrow as collateral. Therefore, if a smart contract does not activate, the broker-dealer can claim the escrow

Connecting Old and New Economy

Brickblock builds a bridge from the traditional investment world into the digital realm. We are leveraging existing infrastructure to enable faster adoption of this new system. All Brickblock transactions are legally accepted and enforceable in a court of law. We believe a transition from old to new is best achieved by building bridges, not burning them.

CONCLUSION & VISION

Brickblock is an inclusive investment platform that empowers people from all income classes to diversify their crypto-portfolio with real-world assets like ETFs and REFs.

We will provide legal frameworks to directly link these assets to our PoA tokens. Furthermore, Brickblock will lead the development of passively managed CTFs, as well as offer actively managed CMFs.

At Brickblock, we strongly believe that digital currencies are the future. The monetary system and the financial services industry are extremely old-fashioned and ripe for disruption. It still takes 5 days for an international money transfer to crawl through the SWIFT network, originally created in 1973 and it still takes 2 days to complete clearing and settlement processes of asset-transfers. Present technology is far more advanced than the heavily outdated regulatory frameworks of sluggish banks.

Various members of the Brickblock team have spent several years working professionally in conventional asset management and understand the processes and issues of trading and settlement. The asset management and global custody ecosystem is highly complex, extremely cost intensive in a multitude of ways (execution, reconciliation, allocation settlement etc.) and exceptionally exclusive.

OUR MISSION is to change that.

We believe that by including more people in the global economy and enabling them to invest their money however they like, everyone will win: investors will pay significantly lower fees, have more options to hedge volatility and risks that accompany the digital economy and bypass unfair local jurisdictions. Furthermore, trusted brokers/dealers and fund managers will obtain an entirely new group of financiers, and underfinanced companies and industries will gain access to new capital. Incumbent banks neither have the ability nor the incentive to free themselves from the burden of the status quo. They lack vision. Any attempt to innovate would meet with disapproval from the board. So it is up to us, the crypto-community, to use the aspiring blockchain technology to eliminate the faults of the old economy and to develop tools which make it simple, affordable and safe to access the instruments currently reserved for the financial class.

It is up to us, to create a system that gives everyone access to real-world asset and to participate in profiting from global economic progress. No matter where and no matter if you have a bank account or not. It is up to us, to make trading, clearing and settlement with any kind of assets as easy and secure as transferring a bitcoin.

If you are interested in shaping the future of investing with us: We are always looking for talented people to help us in making the crypto-world better, safer and more inclusive. Get in touch.

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