Brickblock is a financial technology (fintech) company with a mission to make the world of investing easier, cheaper, and more transparent. It is founded on the belief that investing through current financial institutions is too complex and expensive.
Using blockchain technology and smart contracts to tokenize assets, Brickblock offers a solution to these issues. Since these terms are still quite unfamiliar, let’s take a closer look at how they apply to Brickblock’s modus operandi.
Simply put, tokenization is the digitization of an asset. The digital shares of the asset – the tokens – are bought, traded, and sold on an immutable public ledger called the blockchain. Transactions between the buyers and sellers of the tokens are executed by a smart contract , which becomes active when certain conditions programmed into its code are met.
For example, an asset owner lists 100 tokens of an asset and sets the funding target. When the asset’s smart contract receives funding from an investor(s), it distributes the tokens to the investor(s) in proportion to the amount they invested. The tokens are not “active” (tradable) until the asset is fully funded. If it is not fully funded, the funds are returned to investors and the tokens disappear.
Making blockchain history
In the coming weeks, Brickblock will offer the world’s first tokenized real estate asset.
This milestone allows investors to invest in tokenized shares of an apartment in one of Germany’s hottest real estate markets. Full property details and investment specs are available here.
In December of 2017, Brickblock listed the private alpha sale of a tokenized real estate asset. This internal sale confirmed that the company is technically and legally on track to execute the upcoming public sale.
Brickblock has established the legal framework for this transaction to be regulatory compliant in the European Union, and the smart contract was recently audited and approved by ConsenSys Diligence, a company at the forefront of the blockchain space.
Brickblock’s smart contract platform
Brickblock connects sellers and investors through a smart contract platform. Built on the Ethereum blockchain, it allows investors to invest in assets much like a limited/silent partner would in traditional models.
Each asset is represented by its own unique token, called a Proof-of-Asset (PoA) token. PoA tokens entitle the token holder to all the economic benefits of legal asset ownership and generate passive income derived from the profits of the underlying asset.
PoA tokens are the electronic equivalent of shares. The blockchain makes it possible to invest in, sell, or trade these electronic shares with less friction than via traditional financial institutions. It’s important to understand that Brickblock isn’t reinventing entire investment structures – the asset is still owned and managed by a trustee. Rather, it is digitizing the transaction of real estate assets and cutting out unnecessary middlemen.
There are three main benefits to tokenizing assets:
Global access: Tokenizing assets eliminates geographical restrictions to investing. Asset owners and fund managers can offer their assets to a broader audience. Investors, in turn, can invest in assets in markets they might have previously been excluded from.
Lower costs: Fewer middlemen in the transaction process means lower fees and no minimum investment amount. Transactions are settled in minutes instead of days or weeks.
Tradability: Brickblock’s PoA tokens can be bought/sold/traded on the secondary market. The company is developing an exchange for these transactions.
Brickblock as a financial technology (fintech) solution
Brickblock offers an attractive financing solution for developers and managers looking to fund their project – access to a global market, a frictionless investment process, and quicker settlements.
For financiers, Brickblock’s smart contract platform grants access to high-quality projects with better transparency, no investment minimums, and lower transaction fees.
ICO: May 9th – May 15, 2018
The Brickblock ICO will run from May 9th to May 15, 2018. This will be the last chance to buy Brickblock tokens (BBK). BBK will be sold for $0.60 USD per token and can only be purchased with Ether (ETH). Bonuses will be awarded to those who contribute more than $1,000 USD worth of Ether (ETH). Bonuses start at 5%. The more one contributes, the higher the amount of the bonus will be. These private deals are only available until April 30th, 2018.
Brickblock has established partnerships and signed letters of intent with auditors, developers, finance firms, and other tech pioneers to fulfill its ambitions. These include: ConsenSys Diligence, Jaxx, Intercam Banco, Fidem, Blocks Investments and ETHLend.
Brickblock is one of the few blockchain projects with a market-ready product. This achievement has been made possible by an experienced team of full-time developers, legal, financial and regulatory advisors, marketing professionals, designers, and strategic partners. Click here to meet the team.
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