There is no doubt that cryptocurrencies are here to stay despite the backlash they have received from many government officials, or some banking institutions. It all started back in 2008 when bitcoin was released but no one really knew what it was, since then there have been a huge number of different cryptocurrencies that have been created for a variety of purposes. Some have been created to conquer the gaming industry and some have been established to aid with privacy issues. There are even those that have moved into agriculture and real estate like Fieldcoin, which is the first blockchain based land marketplace. Fieldcoin has hit the news recently with its growing speculation about how it plans to implement blockchain technology into real estate and agricultural crowdfunding projects.
Fieldcoin, plans to bring forth the revolutionary blockchain technology, and incorporate it into land property transactions, which has the potential to change the way we handle property exchanges between parties. Right now the process of land transactions is a rather long and arduous process that some deem outdated because of the technology that is available, and Fieldcoin will be creating the first decentralized land property management marketplace, but on a global scale. Along with a global marketplace for land property management, the technology will coordinate and transact with other blockchains, such as a blockchain-based registry system which has the capacity to safely and securely facilitate transactions between parties or individuals.
A key issue that Fieldcoin is looking to resolve, is the fact that too many cryptocurrencies have little to no intrinsic value whatsoever, and are backed by nothing but are portrayed to be as good as gold. Fieldcoin has developed a new cryptocurrency that is linked and based on agricultural land property, and since only one asset can have the attributes of actual money, in this case it is land properties. There are actually countries that are running tests on using blockchain technology for this very purpose, countries like Sweden, Russia, Dubai and India are all planning to use blockchain specifically for securing the ownership of land.
Many countries have witnessed the benefits of adopting powerful blockchain technology because it opens the doors to new possibilities, as well as removing old and redundant technology and procedures that actually hinder the way things function. The application of blockchain technology has actually been applied to the agriculture sector already, and is now beginning to solve most of the problems that are faced in the agriculture sector. It is possible for companies to now track and monitor the movement of certain agricultural products that originate on farms and end up in stores ready to be bought by customers. This isn't just a local adoption either, it is becoming a more widespread adoption with the likes of Walmart trialling blockchain technology for this very purpose.
With Fieldcoin leading the way with their own token that is bound to one of the most stable and assets in the world, which is land. Where other cryptocurrency companies look to tokenize their assets for no good reason at all, and lack the vision that is needed to do so, Fieldcoin has a vision in mind which was conceived by the founder Marc Couzic.
Fieldcoin is made up of three main components. The first component is land acquisition which is controlled through the Fieldcoin ecosystem which in turn gives it value and is exchangeable on the platform. As Fieldcoin users will be able to purchase land using tokens there is a lot of emphasis being focused on this stage. The second component is the peer-to-peer exchange between the users on the Fieldcoin platform, and this is where the transactions will take place and users will be able to purchase land using their Fieldcoin tokens. The third and final component is a crowdfunding marketplace where users are able to get crowdfunded, as well as giving them the ability to crowdfund a number of agricultural projects.
You might be asking yourself how the peer-to-peer transactions are going to take place over the Fieldcoin network? Well because the Fieldcoin token is an Ethereum smart contract it can initiate transactions in a safe and secure manner without the need for any middlemen to oversee the transaction. What's more is that the tokens are public coins that can be traded on public exchange platforms and can be used by absolutely anyone, which are part of the Fieldcoin Trade Back Token. The trade back token works by analyzing the price of Fieldcoin token market cap and if it falls, everyday over a 2 month period under a threshold ratio of 80% to the Fieldcoin ecosystem's assets total value, the owner of the tokens will be credited towards any future agriculture land purchases. The credit the token holders get amounts to the difference between the set threshold and the market value of the Fieldcoin token. To make sure that this process is carried out in the right way, every semester Fieldcoin Enterprise will use the services of an external company to audit their assets, to which the results will be released to the community to ensure openness and transparency.
Let's take a deeper look into how the Trade Back Token works in practice. The token holders are able to purchase land on the Fieldcoin platform, and they will be pay for the full market price for it using their Fieldcoin tokens. They will then be credited with a coupon that they can use to buy land at a later date. Since the value of coupon corresponds to the difference between the drop in price of the token under the 80% threshold, and the actual value of assets in the Fieldcoin ecosystem, the coupon can be used to purchase properties that are sold by Fieldcoin Enterprise on their platform. Users will be credited in either euros or US dollars or any low volatile currency that can be used in the future.
As we know the threshold ratio is 80%, but how is the coupon value calculated? Well let's use an example with imaginary figures: A piece of agricultural land that is worth $100,000 during a downtrend.
We know that the total Fieldcoin ecosystem property assets are worth $30,000,000, and the current Fieldcoin token is worth $0.023. With the total number of Fieldcoin tokens equalling 750,000,000, and the Fieldcoin token market cap totaling $17,250,000, we can then calculate the token worth ratio to Fieldcoin assets equals 57.5% by performing the following calculation: 17,250,000 / 30,000,000.
So the coupon price is equal to the difference between the 80% threshold and the 57.5% ratio, to which the coupon adds a 22.5% discount to the price of the land that is bought, or $22,500.
The Trade-Back token has the ability to decrease the risk of loosing a lot of value during market dips but has the ability of drawing a certain amount of physical assets into Fieldcoin's Eco-system during bull markets.
Here is how Marc Couzic, the founder explains it in his own words:
"Here is the thing: in case the token takes 3, 4 or 10 times its ICO value, The trade-back effect will be too small. So, we have thought of adding another mechanism in the trade-back protocol. Fieldcoin's Eco-system needs reserves in order to buy more land in the Eco-system to draw assets into the Eco-system during bull markets in order to level up the threshold guarantee when a market dip hits back. Considering that agricultural land is the most stable asset over the last 50 years, we are creating a stable instrument for trading on our platform. There is a possibility that many traders will also seize the token during market dips, but this is not the original intent of Fieldcoin's Trade Back Token. Any case, it won't harm Fieldcoin token holders."