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How will blockchain transform the freelance industry?

Jan 15, 2018 Posted /  17213 Views

How will blockchain transform the freelance industry?

So far we have well understood that blockchain is an exceptional technology, with tremendous potential as it has the ability to decentralize networks and allowing people to connect. Any blockchain enthusiast reckons that this decentralization mechanism is will soon prompt a wave of disruption. We need to understand here that with the ability to create distributed digital ledgers with this technology increases transparency and living “records of transactions.”

These records are accessible by any user that is operating within the system and are validated by empirical data. It is anticipated that with the help of this technology we can exterminate many frictions that at present exist in the financial and business markets.

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Blockchains are still (comparatively) new pieces of technology, we are not precisely confident how much-decentralized applications will endure and provide a long-term benefit. However, the only assurance which is evident from the researchers till now is that with advancement comes disruption, and we are likely to see elementary shifts in the way many common markets functions.

These are the exciting times for the technology, however, one of the more stimulating ways in which blockchain is affecting an industry is by disrupting the independent freelancers’ space.  Though this group has been emergent considerably over the past several years, they are still overwhelmed with infuriating transaction costs and a profusion of competitive lancers.

Blockchain in Gig Economy

Innumerable phrases have been written and documented in recent years about the rise of the ‘gig economy’.  The evolution of the freelance model was natural and the gig economy presents an interesting space with the help of independent workers who work short-term and for the temporary time period. Instead of hiring full-time staff, freelancers offer a succinct way to perform a business goal without the massive overhead.

While the benefits are enormous, the other side of the equation, gig-based work lets freelancers exercise greater sovereignty and power over their time and finances. They let you choose what you want and how you want it. Further, it forces independent workers to expand their skill sets if they persist in finding work. We need to realise here that traditional 9-to-5 job is still the norm, is abandoned by more and more young people every day and these millennials are rolling away from the trappings of their parents’ lives and disrupting the labour market with a contemporary lifestyle.

On the other hand, blockchain is imbibing the fresh perspective and practice in the technology world as more new use cases are emerging every day and freelancing sector is already embracing change. With blockchain’s decentralizing authority and the efficacy of cryptocurrencies as payment models, freelancers can get more in power on their income, work, and opportunities than ever before.

Blockchain and especially smart contracts are expressly suitable for freelancers as it proposes a third way between searching for jobs and evading the pitfalls of centralized gig marketplaces. Using this technology in tandem, startups have already started working on new platforms that permit freelancers to combine with the people who require their services and do away with many of the conditional practices predominating websites have prevalent inside their systems.

We can easily say now that the remote systems are fading away and the new blockchain-based marketplaces are swiftly becoming more widespread, and they will only develop into a more successful and effective as new users are onboarding. It persists to be recognized what influence these new companies will have on the gig economy, as we know that it would definitely be a big one.

Changing the Freelancing ways

The freelancing space is largely dominated by controlled and authoritative websites that hold great expanse of how freelancers operate. The principal selling factor for a blockchain-based freelancer marketplace is the democratization of control. The gig-seekers on the traditional platforms such as Fiverr and Upwork offer a two-edged sword. On one hand, these sites offer a simple mechanism to search and acquire work without fretting about not getting paid or fake postings. On the other, these companies charge freelancers heavily and more definitely fabricated in favour of employers in cases of arbitration. The dilemma lies in the centralized essence of their services as the platforms are devised to maximize shareholders’ value.

The users should evaluate that instead of exploring to examine all perspectives and equations in the freelance process, using a blockchain based model will allow users to have command and offer their services straight with no third-parties mediating between the network, who take fees from payments or limit the control of the users on the offers for their gigs. The blockchain based open ledger transactions are not functional on central data structuring and does not store data rather immediately distribute it to all points in the platform. More significantly, the payment process is much simpler on the blockchain models and users can be paid in specific crypto-tokens, the topmost cryptocurrencies such as bitcoin, ethereum and in some cases even fiat currency can be utilized.

Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .

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