Hiring employees is time-consuming and expensive. It takes an average of 27 days for a restaurant to onboard a new employee in the United States and 33 days for a retailer to do the same.¹ It also costs about $4,000 per hire.² Meanwhile, prospective employees are burdened with filling out the same inefficient, bureaucratic paperwork each time they secure a job, even though their employment details rarely change.
Using the world’s first smart employment contract on the blockchain, Emparta provides the infrastructure for instant employee onboarding and payment in cryptocurrency, which third parties can also use in their own platforms. Employers can identify, select, and onboard employees in a matter of minutes, rather than weeks. It simplifies the hiring process for everyone, providing a clear, compliant, and efficient way for two parties to engage in employment — effectively removing paperwork and administration for employers and employees. By cutting out inefficient intermediaries such as labor-hire agencies and gig-economy platforms, Emparta creates an efficient, trustless, digital environment that brings employers and job-seekers together and elevates the hiring process to a smart new art.
Why It Matters
The Emparta infrastructure is comprised of three core modules, each designed to make short-term hiring more simple, efficient, and compliant for employers and employees:
1. Emparta Employment:
Businesses can engage employees instantly, without the need for an agency intermediary to maintain compliance — effectively saving time and money.
2. Emparta Identity:
Candidates’ relevant background information can be easily verified and their employment details can be automatically integrated into an employer’s existing payroll system through smart contracts on the blockchain, enabling employees to easily find and engage in work in a matter minutes. The technology also allows network users to have complete control over their data, enabling them to monetize it when they choose to share their information.
3. Emparta Payments:
Payments to employees can be made in fiat — or regular currency — as well as cryptocurrency through an employers’ existing payroll systems, meaning employees no longer need a bank to get paid.
Each module can be used on its own or as a collection. For example, an individual may choose to use the Emparta Payments platform to be paid in cryptocurrency without being a user of the Identity and Employment features.
The suite of smart contracts and APIs within the Emparta infrastructure will be made available to partner platforms (e.g., jobs marketplaces, recruitment platforms, rostering and HR applications) so their users can access smart employment contract, instant employee onboarding, identity, and payments functionality through the Emparta network.
The future needs employment on the blockchain. The technology provides unparalleled security, privacy, and immutability — and offers the opportunity to streamline the otherwise cumbersome hiring process for everyone involved.
Employment is also shifting to temporary engagements, which requires more frequent onboarding. Over 40% of the U.S. workforce is currently classified as contingent — a category that includes freelancers, contractors, consultants, and other non-permanent workers — and is forecast to grow to more than 50% by 2020.³ This trend is reflected across all Western labor markets. In Australia, nearly 90% of all the jobs created in 2016 were part-time or casual,⁴ and the number of zero-hour casual contracts in the United Kingdom has grown to nearly one million.⁵
Emparta is uniquely staged to be at the leading edge of this evolving global job market, because it introduces the concept of a freelance employee with a portable employment passport. In other words, it allows employers to engage individuals for short-term needs as employees as easily as engaging an independent contractor or hiring agency — all while maintaining compliance with local labor laws.
How It Works
Emparta exists on the Ethereum public blockchain, which makes it possible to create a tokenized economy within the network that meaningfully rewards users for stimulating its growth through use, contributions, and referrals.
The blockchain allows Emparta to provide employees the ability to be paid in cryptocurrency without needing a bank. It also creates an immutable and easily verifiable record of their own work history and identity that employees can safely monetize and transfer between employers’ existing HR and payroll systems with the click of a button.
Here are the four parts of the Emparta infrastructure that make it work:
Businesses and individuals establish profiles using the Emparta mobile app or web user interface. When combined with the contract parameters defined within an employer’s job offer, this information allows the establishment of a smart employment contract.
After a job offer is accepted by an employee, the newly formed smart employment contract immediately transmits the employee’s onboarding data to the employer’s accounting system through an API or CSV output that can be easily uploaded — instantly onboarding the new employee in accordance with local labor laws.
Parties within the network will be incentivized in tokens to rate and recommend each other on the basis of performance and skills. Users will accumulate reputational data and history that will be maintained securely on the blockchain and only shared at their discretion.
To enhance their profile, individuals can also request validation of claims relating to employment history, qualifications, certifications, licenses, and other information that may only be attestable off the blockchain. To achieve this, Emparta will establish a network of reputable, insured, and trusted third- party validators that will guarantee screening information in exchange for a tokenized fee from users requesting their services. All attestations will be recorded securely on the blockchain and serve as an immutable record for the user to share with prospective employers at their discretion.
Through the app, individuals can also opt to receive payment in a variety of supported cryptocurrencies, including a native stablecoin that’s 100% backed by and redeemable for fiat currency. The system doesn’t require employers to hold cryptocurrency or employees to have a bank account. This revolutionary innovation will provide a simple way for users to receive income in cryptocurrency — a crucial step to its mainstream adoption.
General use of the Emparta infrastructure is free, but participants must use Emparta tokens — which will be issued as standard ERC20 tokens to achieve the widest compatibility with digital wallets and exchanges — to pay for job postings, various attestation and onboarding fees, as well as other value-added services. Collected fees will be distributed to the reward pool and the Emparta reserve, which will fund the network’s ongoing incentives program as well as development and growth initiatives.
Emparta has partnered with Bit Trade — Australia’s oldest digital currency exchange — to develop and launch a stablecoin infrastructure for partner platforms to easily incorporate a stable unit of account into their processes and service offerings while preserving the benefits and efficiencies of cryptocurrency. The Emparta Stablecoin API allows partner platforms to integrate with the Emparta Treasury Infrastructure to easily mint coins directly to an individual wallet, a dapp or even to a smart contract (e.g. escrow etc.) through fiat deposits to a fully transparent and audited treasury.
There are many use cases in which third parties can utilize this stablecoin infrastructure to remove barriers and encourage adoption of their platforms and the use of cryptocurrency in general commercial transactions. A key to the design of this infrastructure is essentially the delivery of a fiat on and off ramp mechanism. Not restricted to exchanges as a means for traders to manage their exposure to volatility, this unique infrastructure serves as a very simple fiat on and off ramp bridge that will enable broader adoption of dapps and payments platforms that use it.
The first treasury will be based in Australia to support the first partner platforms — Bit Trade and Emparta Payments — and deliver the first Australian Dollar backed stablecoin. However, the infrastructure can be deployed into any market to collateralize and mint stablecoins backed by any currency, and Emparta is planning a rapid expansion into other major markets.
For more information visit www.emparta.io