Brickblock, Asset Trading on the Blockchain

Each decade comes with technological breakthrough advancements that change our lives as we know them. The appearance of the Internet brought speed in every industry it touched and marked the beginning of the global era. It didn’t take long until countless real-life businesses started having an online alternative, until most aspects from the real world started having a better brother in the virtual world.

We are the generation lucky enough to experience not one, but two waves of opportunities brought to us by the development of technology. For those of us that feel frustrated that we underestimated the first wave and we did not surf on it, we are given a second change, with the help of “blockchain” technology. Those who started surfing right away on the second wave, are billionaires by now, but for those of us that have just started, we can still enjoy the benefits brought to us by the further development of the virtual world, as blockchain adoption shifted from early enthusiasts to masses. Fueled by the desire to strive in this new world they have discovered, masses of people are constantly looking for new ways to invest their money on blockchain-based projects, and Brickblock might be exactly what they are looking for, offering easy solutions to invest their cryptocurrency into real-world assets.

What is Brickblock?

Brickblock enables cryptocurrency investors from all over the world to purchase real-world assets and funds with cryptocurrency. According to their White Paper, 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).

The Problem

The problem with the traditional way of investing is that it can be flawed, restrictive and expensive. Many people want to invest in properties to earn a passive income, but they are exposing themselves to great risk when they want to do it. If they do not know the law, they might be subject to fraud, because the investment process is difficult and not fully transparent. The best option for them might be to seek the help of a broker, a middle men  who is a specialist in this field, but they usually need to pay a lot of fees, ending up spending a quarter of their investment budget on taxes. Another problem is that every country has different laws and some of them even have geographic restrictions on foreign investments, thus making it harder for you to have access to investing in another country. Another problem when investing is the need of a bank account, which lots of people from the world do not have.

The Solution

With the use of blockchain technology and cryptocurrency, Brickblock redefines traditional investment through its innovative and modern approach. With Brickblock, people can easily invest in real-world assets from all over the globe directly from their wallets, without having to worry about geographical restrictions, third parties or huge fees. There is no minimum investment required and almost anyone could start investing right away and earn dividends or coupons from investments that will be automatically transferred to token holders through self-executing smart contracts.

How does it work?

Brickblock provides an easy way for investors to sell and invest in tokenized assets on the blockchain, without having them to worry about middle men, extra fees, bank accounts, location based restrictions or bureaucracy. The ecosystem works by connecting users and fund managers while applying a layer of digital trust. Using dApps, Brokers and fund managers will be able to list their investment opportunities on the platform, after being strictly verified by Brickblock. Someone from Romania could buy shares in a Russian Real Estate using cryptocurrencies, without needing to live in Russia, or understanding the Romanian and Russian investment rules. The entire process is safe, transparent and secure, thanks to the use of self-executing smart contracts of Ethereum.

The Token

There is one peculiar aspect of the token, because Brickblock’s ecosystem contains three tokens: Brickblock tokens (BBK), Access tokens (ACT), and Proof-of-Asset tokens (PoA).

Brickblock tokens (BBK) work in an interesting way. When you activate them, they automatically generate Access tokens (ACT) which can be sold for Ether. This will encourage investors to keep the tokens on the long term, rather than quickly discard them on the market, thus increasing the token value over time.

However, if you want to sell your BBK tokens, you need to deactivate them, and afterwards you can trade them on exchanges.

The third type of tokens, Proof-of-Asset tokens (PoA) are sold during an asset’s funding period and will produce passive income for the token holder, which is periodically paid in Ether.

The Team

The project was started when the experienced real estate developer, Jakob Drzazga, who had the chance of witnessing firsthand the issues with the current procedures of the developing real estate fund, met with the founder of some of the biggest blockchain projects in Europe, Martin Mischke. Because nothing happens by chance, soon after that, they started working together on the development of “Brickblock”, and disrupt the real estate industry using the decentralized marketplace. The name itself highlights the project’s connection between real estate (“Brick) and blockchain (“Block”).

Conclusion

Backed by a solid team with experience in both entrepreneurial and technical sides, Brickblock is the first project of its kind that offers cryptocurrency fund investment, ETF investment and real estate fund investing. Instead of worrying about the high volatility of the market, you can secure a passive income without going through the headaches given by the traditional way of investing. Because it eliminates the geographical barrier, I believe that this project has a huge growth potential, allowing people from all over the world to securely invest their money with ease.

As always, I highly encourage you to do your own research, starting with their website: https://www.brickblock.io and their White Paper: https://www.brickblock.io/Brickblock_General_Whitepaper.pdf

 

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