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Exclusive: Investing Is Changing Rapidly - Meet The Team Behind The Revolution

Blockchain technology is changing the way the world thinks about money. We are now in the midst of an inevitable revolution that will dictate what the financial institutions of the future will be built upon.


It appears that traditional investment vehicles are about to change forever. So sat with Jakob Drzazga and Martin Mischke, the minds behind Brickblock, to find out what the future has in store and how early adopters can reap the rewards.

BrickblockUpdate From what we have seen in the media and your Whitepaper, one of the major Brickblock tasks is to open access for crypto investors to investments in traditional markets, as well as to open access for institutions to the crypto currency and ICO markets. At the same time, we have seen that the regulatory ambiguity in the crowdsale & crypto-currency markets has hit a ceiling and resulted in the events that occurred in China recently. What are your thoughts on the situation? How will the regulators build relationships with the new digital assets market?

Brickblock: We believe that working in close alignment with all the key regulatory bodies is critical, and we’re keen to collaborate to help shape those regulatory regimes where possible. At Brickblock, we’ve worked very hard to ensure we have all the correct structures in place, and have appointed a number of experienced legal advisers to ensure we navigate all the relevant processes effectively.

Just recently, the UK’s FCA issued a consumer warning, encouraging proper due diligence before participation in any token sales. That’s something we wholeheartedly agree with.

When it comes to China, we can understand the regulator’s stance there too. ICOs have reached a state of frenzy in the country with reportedly USD 400 million raised since the beginning of 2017, in comparison to the global total of USD 2.16 billion. Millions were raised based on a white paper containing fancy concepts elegantly outlined, but understood by few, and scrutinized by fewer still.

When ICOs have become a business model, rather than a financing method for an innovative business to grow, something has to be done. The Chinese regulator has rightly done just that.

According to the regulator’s in-depth study of numerous white papers circulated in the local market, the fund-raising activities of 90% of ICO projects were distinctly dubious. Of the rest, less than 1% is genuinely invested in the technology claimed behind most ICO projects – blockchain. Therefore, there is an important distinction between China’s ICO ban and its support to the development of blockchain technology which has been included in the country’s 13th Five-Year Plan (2016-2020).

The ban will help to tame the ICO hype and provide a healthier eco-system for genuine and committed blockchain businesses to stand out and stand up to the test.

At Brickblock, we have a grand but simple vision: building a trading platform on the blockchain where transactions are done seamlessly and asset classes transcend beyond forms or borders.  We believe in tokenization as the future and as the new derivative market. 

Just like the internet bubble, the fittest will survive and thrive. Neither ICO hype nor ban will help or hinder us to achieve our vision. To achieve that, we need strategic partners, visionaries, talents and the community who share our passion and long-term commitment.

Click the video above to learn more about Brickblock Having said this, we believe our readers would like to know how you have conducted your crowdsale and what your token offers from a legal point of view.

Brickblock: We have engaged specialized lawyers in Gibraltar, and confirmed with the local regulators that we are able to conduct our token sale. Further, we have Dr. Wolfgang Richter and Axel von Goldbeck, two renowned lawyers from the law firm, DWF, on our board of advisors. Dr. Richter is an expert on cryptocurrencies and Axel von Goldbeck has represented the biggest international Real Estate Managers like Allianz Real Estate, in regulatory cases. They are handling the legal background work which has to be done prior to the sale of the first apartment building on the blockchain in November/December in this year.

With regard to our tokens, Brickblock Tokens (BBT) will be the key to generate a lifelong generation of Access Tokens, which will be required to use the platform. We have been hearing a great deal about the transaction on the real estate purchase that you are going to settle and perform using the blockchain. Can you explain step-by-step how this will be implemented and how the blockchain in particular will be used. Can you also elaborate on the legal framework for such a deal?

Brickblock: The transaction will be conducted on the Ethereum blockchain. We will use a smart contract which is already available on our Github repository. This smart contract will be audited by Zeppelin Solutions and we will release a bug bounty very soon, to ensure the safety of the smart contract.

Investors will be able to access the Brickblock platform and go through a basic KYC procedure. They review all the information, including details of the management structure and costs as well as pictures and videos and location from the property. It will be a property of about 1.000 square meters (mixed commercial and residential parts), which is already rented out and in very good condition. As soon as they agree to the terms and conditions they can transact Ether to the smart contract.

When the smart contract hits the funding goal within 3 weeks, the already reserved managed apartment building will be legally acquired with the funds from the investors. Once the legal transactions are finished, the manager will subtract all costs and reserve assets, convert the monthly rent into Ether and send it to the smart contract. This smart contract will automatically allocate the ether to the users who invested in the first place. The users will receive the passive income directly into their wallet. Your Whitepaper makes reference to the legal enforcement of claims. How is this implemented? Does this mean that a conditional smart contract has some legal confirmation in the real world?

Brickblock: As mentioned above, there will be a legally binding connection between the token and the asset. The exact concept will be released prior to the sale to protect our competitive advantage over other projects.

Click the video above to watch Jakob Drzazga explain how blockchain makes ETFs smarter Experts are saying that the key vector of the development of the blockchain economy lies in the creation of an infrastructure that is similar to the traditional financial markets, but in the digital space. What are your thoughts?

Brickblock: This is exactly what we do. Just look at our passive crypto fund which is called a coin-traded fund. We chose this name because our system strongly resembles the ETF share issuance by, for example, BlackRock iShares or Deutsche Bank X-trackers.

We took their system and improved it by automating tasks through smart contracts. Although our token will be not tradable on a traditional exchange at the beginning, that is something we will look at. The Gibraltar Stock exchange plans to make Tokens tradable so there may be options for the future.

Brickblock will be at the forefront of this and will help shaping the regulatory and technical environment for that. How do you feel about the attempts of some governments to regulate the industry? Does this really open up new opportunities for the development of the blockchain economy? Or, does this create artificial barriers? Isn’t the digital currency revolution designed to eliminate this issue?

Brickblock: Having the right regulatory structures in place is critical to ensure the safe development of this rapidly growing and developing market. While you could argue that this creates barriers, if the regulation wasn’t there and the industry was not well-managed, then it would never achieve widespread adoption. At Brickblock, we are working closely with the regulators to try to help shape the right approach. Is it going to be simple to invest $ 50 million saved in a bank account of a private person or a company in crypto-currencies through Brickblock? Is there any chance that this investment process will be performed in just a few clicks within 10-15 minutes?

Brickblock: There is no reason why that would not be possible, though the KYC procedure might be slightly more lengthy.

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