Brickblock Review – Asset Trading on the Blockchain

Brickblock uses blockchain technology and smart contracts to simplify investing in brick & mortar assets, as well as crypto funds. The platform allows verified fund managers to list different types of tradable assets. Assets targeted include real estate funds (REFs), exchange-traded funds (ETFs), passive coin-traded funds (CTF) and active coin managed funds (CMFs). By cutting out middlemen, Brickblock significantly reduces the costs of investing, introduces a more streamlined process, and increases security.

Key Features and Advantages of Brickblock

Accessible – Brickblock enables people to invest in real-world assets around the world directly from their wallets. Users can invest in US or European real estate and stocks without geographical restrictions.

Low entry costs – Low entry costs allow small fund managers and investment brokers to attract investment opportunities.

Optimizing dividends – Dividends or coupons from investments are automatically transferred to token holders through self-executing smart contracts.

No minimum investment – Banks may charge high minimum fees. Brickblock enables users to get whole-sale prices with no minimum investment barrier.

Brickblock – How does it work?

The Brickblock ecosystem works by connecting users and fund managers while also applying a layer of digital trust. Human input is minimized by using self-executing smart contracts of ethereum and the system as a whole is faster and more secure.

Brickblock’s infrastructure will be implemented as a decentralized application (Dapp). 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.

A visual representation of how the Brickblock ecosystem works

Brickblock Tokens, Access Tokens and Proof-of-Assets Tokens

There are three types of tokens used in the platform and they all follow the ERC20 token standard.

Brickblock Token (BBT)

The Brickblock Token (BBT) will have 500 millioin total supply. Brickblock Tokens will only be released during the contribution period in exchange for ETH and Bitcoin. If the Brickblock Tokens are stored in a special smart contract, the Brickblock token holder will receive a certain amount of Access Tokens per week until the Brickblock Tokens are withdrawn from the smart contract.

Access Token (ACT)

Access Tokens are similar to the concept of gas in ethereum. They are needed to confirm transactions on the blockchain. Fees for transactions on the Brickblock platform are 0.5% of the transaction volume for each transaction. These fees have to be paid with Access Tokens. Access Tokens used to pay for transactions will be burnt upon use.

Proof-of-Assets Tokens (POA)

For ETFs and REFs, PoA tokens represent real-world assets in the form of securities. For CMFs and CTFs, they represent a claim to coin funds on a secured trading account or in the custodians’ wallets. Users receive a PoA token in return for every fund in which they invest, which represents a legally enforceable claim to the underlying assets.

Brickblock ICO Information

The ICO starts from October 31, 2017 and runs for three weeks until November 21, 2017. As of November 6, 2017, they have received over $4,420,000 in funding. The breakdown is as follows:

  • $1 million USD during a five-day public pre-sale in August.
  • $2.975 million USD in private investments.
  • The rest have been raised from their current ICO

There will be 500 million Brickblock Tokens in total. Of these:

51% will be sold in the token sale

35% will be in company lockdown for at least three years

14% will be distributed to early backers, bounty program, and founders

Brickblock tokens (BBT) Pricing

  • Nov 2, 10:00am UTC – Nov 7, 9:59am UTC: $0.40 / BBT
  • Nov 7, 10:00am UTC – Nov 14, 9:59am UTC: $0.43 / BBT
  • Nov 14, 10:00am UTC – Nov 21, 9:59am UTC: $0.48 / BBT

Final Thoughts on Brickblock

This looks like an attractive option for investing in real estate assets more so than their other offers of stocks and coin based investments. The low costs and accessibility of the platform are great selling points and they are progressing with the project, having launched their alpha version on October 20.

 

Resources:

Brickblock website https://www.brickblock.io/

Whitepaper https://github.com/brickblock-io/whitepaper-general

Brickblock blog https://blog.brickblock.io/@Brickblock

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