The gig economy has grown exponentially in the past few years. Workers are more interested in jobs that can guarantee flexibility. The emergence of freelancing platforms like, Upwork, Fiverr and Uber have increased the number of freelancers in the world today

Recent trends have also shown that corporations tend to outsource a fraction of their jobs to independent contractors. However, it is not all smooth sailing for the gig economy. The emerging economy is plagued with problems like contract disputes and unethical behaviors. Yet, traditional freelancing platforms have not been able to offer innovative solutions to counter these problems.

The emergence of blockchain-based freelancing platforms is already introducing some significant changes to the freelance ecosystem. These platforms utilize blockchain technology to create a network that can allow its user, both freelancers and clients to access functionalities that can guarantee transparency and increase productivity.

Blockchain allows transactions to be stored in a decentralized and distributed ledger. It is mostly recognized as the facilitator of cryptocurrency, however, it has been revealed that it can do much more.

Blockchain-Based Freelancing Platforms Offer Better Payment Methods

Freelancing is generally described as a traditional route to taking charge of one’s own career. However, the current freelancing marketplace poses various contradictions to the prescribed philosophy of completely taking control of one’s career. Majority of traditional platforms charge up to 20% of every successful transaction between freelancers and clients. For a system that promises financial independence, this seems a ludicrous situation.

On the other hand, blockchain-based platforms charge as low as 0.1% as transaction commission. This means that freelancers can indeed be a part of a network that gives them true power over their career.

With Blockchain-Based Platforms, Proof Of Work Is Guaranteed

Blockchain is designed to notify all the nodes of a network on every confirmed transaction carried out within that network. This functionality gives blockchain-based freelancing platforms an edge over their traditional counterparts.

Blockchain-based freelancing platforms will automatically notify all the participants of the network on all completed projects. Therefore, freelancers are able to build a public resume that cannot be hacked, falsified or manipulated. The user’s resume on the blockchain will help clients assess the qualifications of the freelancer.

Blockchain-based freelancing platforms can also allow freelancers to put copyrights or intellectual property rights on their projects.

Blockchain-Based Freelancing Platforms Use Smart Contracts

One of the major limitations of existing traditional freelancing platforms is that the contracts that they host can be altered due to the editable nature of their databases. Unethical clients or freelancers are also capable of holding payments and finished projects as ransom so as to force improved deals.

Blockchain technology allows freelancers and clients to agree on project deadlines, project fee, and project quality on smart contracts. Therefore the submission of projects to clients and payment of agreed fees will only happen if only the terms in the smart contract are met. This will eliminate cases of late payments, late submissions, and altered contracts.

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