Development of an investment platform using blockchain technology to tokenize the assets of companies in the real sector.
The project for the issuance of tokens on the Ethereum blockchain addresses an urgent problem:
- The tokenization of assets of companies in the real sector of the economy.
- The ability to link equity participation to tokens allows investors to invest in shares of non-public companies that were previously inaccessible for investment and receive all related rights and payments at the stage before the IPO.
Project background
Rsquad participated in the development of a blockchain interoperability service for a system that would function as both a technical solution provider and an investment bank, helping investors to invest in the assets of selected and professionally valued companies at the pre-IPO stage. At the same time, after the company’s IPO, tokens, if desired, could be exchanged for ordinary shares, or continue to collaborate with them.’s IPO, tokens, if desired, could be exchanged for ordinary shares, or continue to operate with them.
For investors who are accustomed to working with cryptocurrencies, tokens supply an opportunity to diversify risks. Even though in this case the profitability may be lower, the tokens backed by real assets are stable and have lower risks of losing investments in comparison with cryptocurrencies.
After the company decides to issue tokens for subsequent sale to investors, the assets are deposited electronically in an independent European trust. This solution guarantees a rigid bundle of tokens and assets and complete independence from the actions of the provider company. Only after that, the tokens become available for purchase by qualified investors.
The system allows for the IPO of tokens, tracking, and conducting transactions after placement. Investors receive up-to-date information on the activities of the issuing company in real-time.
Exceptional nature of the project
IT development of the project was implemented in 2018. We have not seen such solutions before, the concept and implementation were entirely invented and developed by Rsquad.
It was one of the world’s first solutions for the tokenization of real sector companies’ assets by issuing and selling tokens in peer-2-peer format and OTC, with the registration of transactions, investor rights, and a settlement mechanism based on blockchain technology.
The form of tokens allows achieving high investment efficiency while reducing costs and full transparency of the investment process, as well as reducing the burden on agents associated with an excessive source of bureaucratic procedures inevitable when working with classic securities.
The system serves as a convenient interface for issuing, placing, circulating tokens, distributing income, and voting, while all these transactions are conducted on the blockchain.
That required technical solutions at a prominent level of complexity in terms of division of rights and distribution of responsibility between owners at the blockchain level when making important financial decisions.
The goal of the development is to simultaneously make the ownership of tokens safe and the transaction an easy and effortless process.
Conception
This software solution is developed to provide users with a bridge between traditional and crypto economics.
The technical platform allows the issuance of tokens on the public Ethereum blockchain. They will circulate safely inside or outside. The system of smart contracts considers all the legal aspects of transactions.
The task included the development of software for the bulk of the project with the blockchain. It was supplied a convenient and, most importantly, secure environment for users to help the process to negotiate transactions during token trading through the smart contract system.
A considerable role has relied on the expert audit. As a result, specific users of the system can trust smart contracts verified by third-party experts. That does not require the involvement of other legal entities and individuals.
List of key developed features
Participation Rsquad is a system that includes:
1. Programming interface for issuing tokens.
2. Smart contracts based on the Etherium platform.
3. The Ethereum Blockchain API is used to run the core system.
4. An application that integrates a web platform and a blockchain solution from the point of view of business logic.
About software
Project management system, tasks — JIRA, Confluence;
Code repository (Git-repository) — Gitlab;
Automation of deployment — Docker;
Programming languages - Javascript / React.js, Node.js / Loopback api;
Blockchain platform — Etherium;
Development of smart contracts — Solidity, Bitcoin script;
Cloud infrastructure.
Thus, Rsquad has demonstrated its consistency, fundamental base and ability to consolidate knowledge of best practices in the field of information technology and digital transformation.
