A plug and play system that enables established businesses to offer tokenised commercial real estate is at the heart of the forthcoming Blocksquare ICO.

By using Ethereum-based smart contracts, Blocksquare aim to open fractional ownership of commercial property to individuals and in doing so have seemingly validated a Deloitte’s prediction for 2018.

As wage growth has stagnated and housing costs have risen, part ownership of residential property has become mainstream but commercial real estate has largely remained closed to pooled investment outside of the traditional fund channels.

“Proof of Title”

However, this state of affairs was tipped to be disrupted by Deloitte when they highlighted real estate fintech startups as one of the main opportunities for property owners to “avail alternative capital options.”

Blocksquare’s online model fulfils this vision as estate agents can sell a single property to many different buyers instead of just one, providing benefits to all parties involved.

Many buyers should equate to a deeper and more liquid market for the agents while fractional investment opportunities means purchasers can stake in multiple properties to spread the risk of ownership.

Blocksquare will use a Proof of Title protocol, through the company’s PropTokens, which assigns each property with a definition of the underlying asset as well as the rules, regulations and registration data for all the transactions involved.

As PropTokens relate to individual properties they cannot be offered in this investor round so it will be Blocksquare Tokens (BST) and not PropTokens that are available for purchase in the ICO. BST provides the fuel to interact with PropToken contracts within the Blocksquare platform and are also used as compensation for any generated rent.

An established software development company, Medius, is a founding partner of Blocksquare and has assisted in developing the tokens, smart contracts and the platform’s decentralised exchange.

As a result the prototype is reportedly almost ready and Blocksquare expect to have their first tokenised real estate deals on the market as early as Q2 2018.

After a successful presale of 4.4 million BST, this Series A crowdsale for 10 million BST priced at $0.50 per BST will begin on April 18th. As platform adoption increases further rounds of crowdfunding to aid expansion are expected to raise the total supply to 100 million BST.