Blockchain Foundry (BCFN.C) entered into the first first phase of a blockchain development and marketing agreement with blockchain-based real estate lending firm Noteblock today.
Noteblock is a blockchain powered tokenized real-estate firm platform that intends to disrupt the real estate market by enabling users to originate, service and trade estate backed loans by leveraging a secure, streamlined and user friendly peer-to-peer marketplace.
Noteblock offers investors and borrowers the benefits of lower costs and enhanced liquidity by cutting out the middle-man.
“Noteblock chose Blockchain Foundry for lead development because they are highly experienced and some of the smartest people in the industry. We are excited to partner on this project and look forward to continuing our work together,” said Justin Fata, Director of Business Development of Noteblock.
What is a token?
In simplest terms, a token is a digital representation of a real-world asset, value or function. This tokenization increases liquidity of traditionally illiquid assets, and also makes it possible to trade those assets without a third party.
Tokens in the blockchain space usually fall under three categories:
- Payment Coins: These are cryptocurrencies, such as Bitcoin, Litecoin, and Ethereum. They can be used as currency both inside and outside their platform.
- Utility Tokens: These tokens fulfill a utility or function in their platforms, such as giving holders the right to use the network by voting within the ecosystem. Golem’s GNT is an example of a utility token.
- Security Tokens: A token that derives value from an external, tradeable asset is called a security token. These are subject to federal securities and regulations. This is the type of token that will be used to tokenize real estate.
According to the World Economic Forum, 10% of the world’s GDP will be stored in crypto assets in the next ten years. That means $10 trillion worth of assets stored as tokens.
Here is Trevor Koverko, CEO of Polymath, to explain further:
Fractional ownership
Another salient point about tokens is that they are divisible, even if the assets they represent are not. That means that the digital representation of ownership over the asset can be divided into parts and sold to several owners.
An Indian company called PropertyShare.in is already capitalizing on this model by offering investors a service that allows them to purchase fractional shares of residential and commercial units. The agreement lets them collect partial rent on the properties as they watch their net worth increase as property values rise.
These are the types of opportunities that Blockchain Foundry is helping to facilitate.
The company, like this technology, is still in its infancy.
Who knows where they’ll be in five years?
Are you in?
Blockchain Foundry’s stock price rose $.005 to $.11 today.
They have 70,395,148 shares issued and outstanding with a $7 million market cap.
—Joseph Morton
Full disclosure: Bitcoin Foundry is an Equity.Guru marketing client.
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