Introduction

Abstract

The PROPX NanoChain is an Ethereum based blockchain - designed to make fractional investment a reality. The word nano in the name is a metaphor for small transactions, the chain itself is a large, secure system to be built on the MultiChain private blockchain framework. We foresee that it will manage hundreds of thousands of transactions a day managing millions of accounts.

Problem statement

The cost and administrative burden of managing millions of tiny accounts forces fund management companies across the globe to implement minimum investment limits and focus on fewer large accounts. The financial and admin overhead erodes potential profits. Lower projected profits discourages big investors. While the minimum investment amount controls the cost it also excludes a large part of the global population from taking part in the opportunity.

Hypothesis

We have an opportunity to unlock billions of dollars of recurring investment from small investors around the world to benefit investors, the property sector and society as a whole using blockchain technology.

Envisaged solution

The PROPX NanoChain is a proprietary software software system that extends the a private implementation of [Ethereum or MultiChain] blockchain technology. The new system allows verified clients (authorised financial service providers) to create and sell property assets in their own jurisdiction.

PROPX token

PROPX tokens are the “fuel” the drives the features on the system. Corporate clients will be required to purchase PROPX tokens to register, pay monthly platform fees, generate internal tokens and consumers will pay transaction fees on buy, sell and send functions.

Token characteristics

Variable Value Remarks
Type Ethereum
Total supply 50 million 15% to company, 85% sold
Token price US$ 0.30 Want to invest more than $1 000? Email us investors@prosperiprop.com
Round 1 supply 10 million Balance will be sold in second round once prototype is ready.
Token distribution Instant Tokens are issued immediately upon purchase from 31 October 2017
Crypto exchanges Pending All major exchanges will be approached. The ultimate decision to host PROPX is in their hands. But we can petition them and send them chocolates and beer.

The PROPX NanoChain will launch in the first half of 2018, with a corporate banking client launching the first product. Demand will gradually grow as more clients start to use the system. We anticipate a maturing phase with flat growth rate over the first 6 months, but thereafter we expect demand to pick up sharply. Within 18 to 24 months from launch the platform is expected have matured into a trusted business tool with a number of API clients and whitelabel clients. From the second half of 2019 demand for PROPX tokens is expected to be regular and consistent.

Speculative price projections based on sales targets and envisaged potential demand for PROPX tokens to create and run fractional property investment products.

2018 (Circulation: 10m) 2019 (Circulation: 15m) 2020 (Circulation: 25m)
US$ 0.5 to US$ 1 US$ 5 to US$ 8 US$ 15 to US$ 35

PROPX NanoChain - distributed investment management system

When Satoshi Nakamoto, the person credited as the founder of Bitcoin, created Bitcoin he needed a low cost accounting system that could manage millions of records, securely and efficiently. The blockchain, by design, solves the problem of managing millions of accounts in a cost effective, labour efficient manner.

The PROPX NanoChain will be an instance of an [Ethereum\MultiChain] blockchain. We will add turnkey asset management functionality making it possible to:

  • List assets (like a property, a building or a property share portfolio).
  • Issue internal cryptocurrency against the value of an asset.
  • Issue purchased investment value to consumer wallets.
  • Automatically distribute asset appreciation and other earnings to the wallets.
  • Manage trade of these assets to cash an investment out.

The technology will proprietary to ProsperiProp and developed in conjunction with two technical partners in South Africa, both of whom have strong blockchain and mining skills (Refer to team section for details).

High level system overview

Note: Click/tap image to maximise

Note: Click/tap image to minimise

NanoChain diagram NanoChain diagram

The PROPX NanoChain system consists of six parts:

  • Multichain private blockchain core1
  • PROPX NanoChain specific extensions
  • PROPX NanoChain operating software
  • PROPX NanoChain asset management console
  • Programming interfaces (SDKs, XML APIs)
  • User interface platforms
1 ERRATA: The overview image incorrectly states Ethereum blockchain core.

System user types

Authorised financial service providers will use the system to create investment products. Normal everyday people will be able to participate in investments.

The following user types have been defined:

  1. Service provides:
    • [CI] Custom implementation: The system can be accessed via API through a secure socket tunnel. A custom implementation allows clients to integrate the service into their own customer facing platforms. Target clients would be banks, smaller financial institutions, even government.
    • [WL] White label clients: A branded experience can be offered to clients where they will access the system via a hosted instance of the PROPX Asset Manager. The platform is hosted2 and secured by ProsperiProp. A default set of features are available with the potential of tailoring features to suit the client’s requirements. The instance connects to the Asset Management platform via the API.
    • [N] Normal clients: Won’t require a fully branded experience and can access the system through the default console. The client will be able to configure a logo and basic corporate colours. No custom development is possible.
  2. Consumers:
    • [CI] Custom implementations: These clients will manage their own consumer interfaces to the system. All consumer functions, including authentication is handled by the client. Consumer will not be able to log into any of the PROPX NanoChain customer platforms.
    • [WL][N] White label and normal clients: Consumers of white label and normal clients will be able to log into the platform using the PROPX mobile application, the PROPX website and other channels (like USSD) as they are designed.
  3. Developers:

    All client developers will access the system through a common developer platform. The developer platform will allow clients to link and deploy smart contracts. The developer platform will allow developers to run transaction simulations through test scenarios before deploying code to the live environment.

System access

The PROPX NanoChain is private system. Clients will be able to register on the platform. Identity verification agencies will be contracted to conduct detailed business and personal verification. Credible, reputable service providers will be allowed to subscribe to the system. Once verified clients will be able to log into the system to create fractional investment opportunities. The client is responsible for the correctness of information and will be able to supply as much details about the opportunity as they deem necessary to sell their investments.

Use cases

The basic workflow is detailed below. This workflow can be adapted and applied to a number of different scenarios.

  1. A client lists an asset on the system.
  2. The system creates a public reference to the asset on the PROPX NanoChain. The reference links back to a complete overview of the asset as added by the client - data includes listed asset value, asset documents, number of tokens generated, number of tokens sold, current token price, token owner comments and client announcements/token owner communication.
  3. Consumers will be able to participate in the opportunity by clicking on a buy button integrated into the client’s website/mobile app, consumer’s PROPX profile page or the property page referenced on the blockchain.
  4. Payment is processed via credit card (Stripe) or cryptocurrency.
  5. Property appreciation and profit are recorded in the PROPX asset management platform and applied to the tokens automatically. The user is alerted of their investment growth.
  6. When a consumer needs to draw on their investment they will simply click a sell button in their investment profile, or any one of the integrated platforms.

Target clients

The system will be designed for a wide range of corporate and other clients to be able to set up property investment products.

  • Governments and local governments
    The NanoChain can be used to record informal sales of land and other municipal property.
  • Blue chip corporates, large financial institutions
    Example: Banks, insurance companies and medical aid companies, wealth management companies, fund managers and brokers
    These companies can all use the system to raise investment capital against assets they own.
  • Venture capitalists
    Venture capitalists can use the NanoChain to raise funds for retail and other construction projects. The investor list is managed by the system and profits are allocated to investors automatically.
  • Fundraising
    Political parties and religious groups can use the NanoChain to issue electronic raffle tickets, it could also be used to raise funds for a project like a creating a new building.
  • Game farming
    This is not strictly property but the system can do it: Game breeding is big business with billions of dollars exchanging hands annually. The system allows a breeder to offer shares in a breeding animal which records each person’s share and distributes profit accordingly.

Benefits of PROPX NanoChain

For financial institutions:

  1. Clients can launch micro investment products in a matter of minutes.
  2. The system generates QR codes, hyperlinks and ready made buttons that can be placed on advertising, websites, email newsletters letting consumers purchase with a single click.
  3. Asset listing and investment product definition is wizard based, with video tutorials and documentation every step of the way. A product wiki as well as discussion forum supports new users.
  4. The system can be branded, whitelabeled or even integrated into their own product environment.
  5. The client has none of the technical concerns as the core system is hosted and maintained by ProsperiProp.
  6. The underlying blockchain technology is well known, safe and fast.

Concept commercial model: SMEs

We will follow a fairly standard software pay as you use model where clients pay to use the platform.

Companies will have to buy PROPX to generate investment products. An example of pricing for a normal user is listed below. As system usage increases demand for PROPX will increase.Potential revenue streams:

Feature/Function Description Cost
Registration Client on-boarding and verification 2000 PROPX
Subscription Provides access to the platform to manage campaigns. 1500 PROPX
Generate tokens Generates internal tokens associating each token with one fraction of the asset. 0,001 PROPX per token
Launch campaign Generates marketing links, barcodes etc. 1000 PROPX

Concept commercial model: Whitelabel and API access

A blended approach between Remix licensing and Technology Partner license models will allow corporates to aquire branded instances or completely independent API access to the platform. In all instances the platform remains a hosted solution managed and maintained by ProsperiProp.

Partnerships

Country partners will be licensed in each geographic region to market, sell, integrate and support the PROPX system for the corporate clients. Partners, like system integrators, will earn the following revenues:

Sales item Description Revenue opportunity
Annual renewable license A standard software license, annually renewable. % Share
Professional services Fees charged for integration and training of the system. 100% System integrator
Transaction fees Certain transactions on the platform is billable. % Share
Support fees Fees charged for different levels of support. 60/40 Split