Real Estate Is King
With the advent of the internet, we’ve seen the processes of investing in real estate become increasingly streamlined. Simply login to your favourite ‘property search’ website, set your criteria and voila — you’re matched with a selection of dream properties and their corresponding agents contact details.
Surely then, we have reached the ultimate end-game in real estate investing technology, and we can now close the books knowing that we have done all we can to better the user-experience?
The team over at Brickblock seem to think otherwise…
Let’s Discuss: Brickblock
Brickblock are a blockchain company who are having a stab at tokenizing real-world assets, which is basically a fancy way of saying that you’ll be able to invest into property using cryptocurrency.
Real estate isn’t all they’re focusing on though. Any real-world asset, such as stocks and bonds – they’re looking to tokenise on their smart contract platform.
[Tokenization should be] ethical, morally justifiable, and socially desirable
– Sven Laepple
Let’s dive deeper into the actual problems Brickblock are trying to solve.
- Traditional ETFs, REFs and CTFs involve high interest rates and middlemen fees
- Geographical trading restrictions, such as needing a bank account in that country
- Counterparty risk is high – clearing and settlement can take up to days, and deals are made on the basis of human trust.
- It’s difficult to invest just a small amount into a rental property.
- Crypto-traders want to be able to spread their capital into assets that are less volatile
- By building a blockchain-based, smart contract platform, order and issuing fees can be reduced to a fraction of traditional costs.
- A cryptocurrency-based platform removes any notion of geographical restrictions or bank accounts
- Blockchain technology allows for quick, trustless transactions.
- The Brickblock platform is designed so that users can invest as much or as little as they want into real estate.
- The Brickblock provides an attractive solution for crypto investors, allowing them to invest into real estate using their crypto without having to go back into fiat.
Once a fund is active on the Brickblock platform, they are allocated their own denomination and their own “proof-of-asset” (PoA) token. These tokens will be available across regular crypto exchanges (pending listings), making it easy for investors to opt-in to whichever asset they choose to invest in, whether it’s the real-estate fund, the coin fund, or whatever else they may have on offer.
By purchasing the said PoA tokens, the user will receive regular dividend payouts in accordance with the underlying fund’s ROI.
In theory, the more you invest, the higher your returns – but what is important here is that one can choose to invest as little or as much as they want into these tokenised asset funds.
My Two Sats…
The team at Brickblock have definitely carved out a decent niche for themselves in the emerging decentralized landscape, by identifying and tackling many of the central pitfalls that come with investing in property and stock funds. With an ICO that raised a modest amount just shy of $13,000,000, investors might see the comparatively low market cap as bullish signs for easy investment multipliers.
They already have a working product out that is backed by technical and legal proofs of concept, which is always a nice surprise for blockchain startups and ICOs.
The team is well-rounded with directors and leadership members with previous real estate experience, and they are well staffed with talented developers and a strong marketing unit. The advisory board members all appear to be veterans in the regulatory space, which is also incredibly promising.
The roadmap suggests a very busy 2018 and beyond for Brickblock. By Q3 they would have fully launched their real estate smart contract platform, and have started to establish partnerships with global real estate firms.
While it is too early to determine what the ROI on these funds will be, and whether they will prove attractive to crypto investors, the Brickblock vision is definitely one that stands out in terms of breaking the mould and doing something a little more unique with the potential of tokenization.
Check out Brickblock’s whitepaper here.
Head to Brickblock’s website.