3 ways freelance workers will be benefiting from a blockchain boom
Not just old markets: The so called “gig economy” grew out of nowhere with the help of platforms which borrow directly from the logic behind blockchain. They might go hand in hand together.
Its estimated that a near 162 million people across the US and Europe consider themselves freelancers, many with the help of technology (such as in the cases of Wolt, Uber, Fiverr, Upwork, and Etsy).
Its easy for traditional employees to imagine the benefits of working without oversight, fixed physical location or inflexible hours. On the side of the client, the ability to get a logo or animation completed without needing an in-house designer on a payroll, or pay large sums to fund a provider with lengthy contracts filled with “what ifs” is a perfect near solution. However, there are many difficulties to being a one-man “micro-enterprise”: Scalability can be a challenge when you lack the credibility and stability of a steady flow of work. In addition, freelancers don’t have the legal power to stand up to clients in case of a contract dispute. On the clients side its not all rainbows either: Firms come with a brand, which can give the business peace-of-mind they can’t always get when hiring a complete stranger for a one-time gig.
Platforms like the ones mentioned above are working to create seamless solutions for all parties on their platform. But the very nature of blockchain and smart contracts may be the solution under all of our noses.
There are several features in 3rd party freelancing platforms that make it attractive to both users and clients. Aside from the obvious benefits like exposure and access to a living marketplace, one of the most important roles the platform plays is of escrow service: Client and provider agree on terms, and when both parties agree that terms have been met — a payment is released. In this sense, a website like Upwork basically acts as a neutral a 3rd party which is what makes working on the platform smoother when compared to hiring of a firm with lengthy contracts and high stakes.
Aided by other features like a rating system and portfolio (both which can in theory be gamed), this escrow aspect is particularly important to independent freelancers, many of which do not yet have the clout to garner trust from a new client they’ve never met before. This also puts the mind of the client at ease — No need to dread over the new “hire”, because other than time wasted, they have nothing to lose (no employment contracts to be breached).
Since clients and freelancers discover each other online, their relationships lack the trust associate with direct relationships. This leaves the client uneasy about the quality of work, as the freelancer stresses over fair compensation for their time and efforts.
Smart contracts executed by a blockchain can help alleviate these pain points directly by setting terms for payments, much like 3rd party platforms try to do currently with escrow.
With a smart contract, freelancers can set predetermined benchmarks for a project, and those checkpoints can be assigned a payment. By this, the smart contracts facilitate the conceptual work contract between both parties a higher degree of confidence.
While this relationship between freelancing and decentralization is still in its infancy, there are already projects making leaps in this space. Here are 3 blockchain-based platforms built to help connect between freelancers and clients:
Blocklancer
Blocklancer is a so called Distributed Autonomous Job Market (DAJ) on the Ethereum platform, our vision of a completely self-regulatory platform for finding jobs and getting projects done. It will change the way freelancing works, both for customers and freelancers, and it will lift the reliability of freelancing to new heights. (Via Steemit)
Bounty0x
Bounty0x is a project that aims to create a platform for decentralized bounty management. With Bounty0x, anyone (aka Bounty Hosts) can host and manage a bounty campaign. Individuals (aka Bounty Hunters) can participate in bounty campaigns and receive rewards and payments in exchange for completing bounty tasks. The Bounty0x platform also includes Bounty Sheriffs, who ensure the accuracy and quality of bounty submissions. (Via Mycryptopedia)
Ethlance
Ethlance allows users to create an employer/employee profile, list and apply for open positions, rank and provide feedback for employers/employees, and to send/receive invoices. Ethlance does not charge any service fees, and users pay only the necessary cost of gas to broadcast their profiles, posts, messages, feedback, and invoices to the Ethereum network.
Since its launch, over 500 users have created a profile and more than 200 open positions have been listed. Projects such as Status, Aragon, Colony, WeTrust, Rex, JAAK, and Giveth are among those who have hired via Ethlance. (Via District0x)
Additional reading: 3 Key Differences between Ethlance and Blocklancer
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