Meet Brickblock
Brickblock blockchain projects aim at solving the inherent issues associated with investing in exchange traded funds (ETFs), real estate funds (REFs), passive coin-traded funds (CTFs) and active coin managed funds. For a long while, challenges such as high cost of ordering and issuing, unfavourable policies in some countries and as well as the role of third party such as commercial banks have all inhibited the growth of investment. It based on this milieu that the Brickblock team came up with an innovative project based on the utilization of smart contracts; effective implementation of this would bring about significant reduction in issuing and ordering fees.
In addition to this, the brickblock projects will introduce a new system to manage passively managed cryptocurrency which guarantee minimization of risks and fees by employing the service of liquidity providers with reward from arbitrage effects. The proposed system employs the asset allocation principle which place emphasis on asset allocation as against the risk-risk contracts for difference (CFDs); the asset allocation model is more preferred as it limits investors’ risk.
THE SYSTEM MODALITIES
The crypto market is unarguably one of the most volatile economy sectors in the world. It is common sight to see an investor portfolio go down even up to 1000% within a short period of time. Diversifications of crypto assets have not really been attended to and if not addressed; it would be impossible to achieve a balanced portfolio.
Brickblock provides the opportunity for investors on the platform to diversify their portfolio with opportunity to invest in a number of opportunities which include real estate funds (RTFs), exchange-traded funds (ETFs), passive coin-traded funds (CTF) and active coin managed funds (CMFs) and all these are provided at a cheaper cost than what is obtainable.
Furthermore, Brickblock platform would have an inbuilt exchange with its own token and proof of asset (POA). The internal exchange would not only accelerate trading speed but will be much simpler to operate than the traditional exchange available presently at a reduce price. Subsequently, investors would be able to convert their cryptocurrency easily into real assets without converting to paper currency because brickblock proof of asset tokens are backed by asset. To this end, dividends and coupons realized on this platform are distributed to token-holders automatically by employing smart contracts on the Etherum network. This ensures optimum security as they are cyptographically secured on blockchain technologies.
Safety of security is assured because the PoA token is backed by a digital trust fund with the exact amount of tokens in circulation. Thus, investors are insured against risk such that even in the face of liquidation, they can still reclaim their issued tokens; because these securities are protected by strict regulations and neither Brickblock nor any broker or anybody can claim them.
The Brickblock platform would run as a Decentralized application (DApps) on the Etherum blockchain. Before granting listing approval on Brickblock platform, Broker-dealers and investment managers’ investment opportunities would be subjected to thourough verification by Brickblock. Factors such as their proof of asset, credit worthiness and criminal record are taken into consideration.
Ultimately, investors would be able to select from a range of investment opportunities based on their individual risk to reward ratio. Subsequently, all fees, exchange charges, lock period, asset value, minimal investment and discount would be clearly stated making decision making easier for investors.
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