What is Brickblock?

Brickblock is a platform based on Blocked Ethereum technology that will allow users to invest in real estate funds (REFs), exchange-traded funds (ETF), passive coin-traded funds (CTF) and active coin-managed funds (CMF) through the process which is efficient and with significantly lower cost than traditional investment.

Mechanism of Brickblock Structure

The Brickblock platform will be developed as a Dapp on the Blockchain ethereum network. Dapp will make it easier for users to choose their investments, and all user transactions on the Brickblock ethereum network are fully supported by Blockchain technology.

The detailed process of investing in REFs and ETFs

  1. The user can choose asset class to be it REF or ETF. Users can select funds based on their investment preferences. Users will be notified of cost, a frequency of distribution, investment area, current Net Asset Value (NAV), minimum investment volume, performance or track record.
  2. Users are asked to save the desired amount of investment into the smart contract after selecting their investment funds. then the user determines the minimum creation size to help reduce transaction costs and separate the PoA token from the nominal value of the fund.
  3. After reaching the minimum creations size, the broker-dealer places the fund’s order. The purchased securities are then deposited into a digital trust fund by a broker-dealer. At the same time, digital trust fund guards publish electronic documents signed cryptographically confirming asset receipts.

4.. This document is verified by a smart contract to ensure that the broker-dealer orders match the user’s order. If the order fits, the smart contract treats this as evidence that the broker-dealer liability is properly met.

  1. The next smart contract releases the user-deposited funds to the broker/dealer, and the PoA token to the user. This token serves as a proof of the asset.
  2. Digital trust funds are only allowed to keep securities for the real benefit of the PoA token. If PoA token holders wish to sell their assets, they may sell PoA tokens on token exchanges such as EtherDelta, iDex, 0x or withdraw securities from digital trust funds at any time after going through the KYC process provided by the bank.
  3. Dividends or coupons issued by digital trust fund trustees sent directly to intelligent self-executing contracts, which will automatically allocate to their respective token holders.

The detailed process of CMFs management

Fund managers who manage coins can run funding campaigns on the Brickblok platform and manage funds by investing in different cryptocurrencies. A cryptographic audit infrastructure will thoroughly verify each new individual through, inter alia, evidence of residence, credit report and criminal record. Furthermore, all trades will be recorded and stored safely. Here is the detailed process;

  1. User funds are transferred to a secured account at the trust exchange, where the withdrawal function is blocked. Users then receive a PoA token in exchange for their funds. Through the use of secure accounts, the risks of fraud and personal key losses are minimized.
  2. Non-tradable digital assets above the public exchange, fund managers receive user funds from smart contracts to unsecured accounts, controlled by fund managers. The user again receives a PoA token instead. In this case, the legal contract between Brickblock and the fund manager protects the user from fraud. If there are any irregularities, Brickblock can enforce user claims through legal action.
  3. Users holding Token PoA supported by crypto represent actively invested funds managed by fund managers. The fund manager diversifies the funds received into various cryptocurrencies and other tokens.
  4. An Investment Manager may choose from different cost structures: percentage of profit, a percentage of managed funds or fixed costs. Users can then select an investment manager based on compliance with the desired cost/risk/reward risk structure.
  5. At the time of the prescribed trading time window, the funds are transferred back to the smart contract, which is then forwarded to the Ethereum user wallet, minus the cost of the fund manager.

The detailed process of passive coin CTFs in trading

CTFs are smart contracts that track the underlying index of crypto assets as much as possible. The ownership of a digital trust fund, in the form of crypto-wallets, is kept in cold storage by a custodian. This is necessary because the current Ethereum smart contract cannot handle automated transactions with other blockchains reasonably. ACTF provides the permission and exchange basket, which is required to generate and redeem tokens. This basket composition helps to rebalance the funds owned by the underlying index. The first user decides whether to buy tokens through exchange trades or using a manufacturing mechanism.

Detailed trading process

The investment process for passive CTF is similar to investing in REFs and ETFs. Users can choose between different indexing methods designed by fund managers. Indexes are the basis for CTF composition and determine risk and performance. Brickblock will support users by providing cuts of CTF facts, past performance and CTF tracking quality.

The detailed process of creation

Brickblock will prevent trading costs by leveraging liquidity providers (LP). LP holds a PoA token in their account and sells it on the exchange. Furthermore, LP may create and redeem tokens from those funds.

  1. The token is created by sending the specified component in the file creation to the custodian and correspondent wallet addresses. If the correct cart is sent to the wallet, an automated message is sent to the CTF smart contract and the PoA token is released.
  2. Liquidity providers help minimize the cost of running a trade and rebalancing funds and taking advantage of the effects of arbitration in the market.
  3. If the CTF funds receive a cash payment (pay ETH for a PoA token), the holder of an existing PoA token is charged for the resulting trade costs and thereby, subject to sanctions. Therefore, LP receives a redemption bundle of assets in exchange for a PoA token and must manage the trade itself.
  4. Instead of purchasing a PoA token through an exchange, users are permitted to use the manufacturing mechanism as long as they hold all necessary assets. However, for unprofessional users, it’s easier to buy tokens that have already been created on the token exchange

Detailed information on the components involved in the CTF process

  1. User / Investor chooses which one can exchange PoA tokens on the token exchange. In addition, users are allowed to create tokens by sending a “manufacturing unit” to a CTF smart contract and receiving a PoA token of the same value in return.
  2. Liquidity Provider (LP) is at the center of the process of making and exchanging PoA tokens. They have the right to redeem a PoA token against the ownership of the funds. By importing it on the CTF and saving on transaction costs, the redemption unit is consolidated into a 5,000 token block. Like users, the LPs can create tokens by sending the creation bucket to the funds (custodial wallet). Instead, they receive the same value in the PoA token.
  3. LP acts as a market maker in the stock exchange. To properly fulfill this role and react in a timely manner, LP holds a PoA token in their own account. LP acts as a bu between investors and funds. The number of LP for one CTF is unlimited.
  4. Intelligent Contract Funds Trading coins are trying to replicate the index as close as possible. They publish the making and exchange of baskets daily. Cart describes the assets needed to create a new token or received by LP when a PoA token is redeemed. The basket of manufacture and exchange is designed to fit the asset to the underlying index.
  5. File Creation / Redemption describes the creation basket. This is a coin or token composition to create a new Poen Token. Creation/redemption file released by CTF smart contract.
  6. The underlying index is the core of the CTF. CTF tries to track index as close as possible without tracking errors or differences. Index methodology and rules designed by fund managers or index providers. These rules can be market-oriented, factor or momentum strategy. Any blockchain asset can be included in the index.
  7. The Guard Custodian stores different crypto-wallets in cold storage. Transactions are automatically sent to a CTF smart contract, which confirms receipt of the correct build cart

Conclusion

Brickblock will always provide easy facilities investment for its users. Various investments can be user-selected through Dapp’s transparent applications and low transaction costs. Just visit www.brickblock.io your investment will be resolved.

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