How Blockchain Technology Could Increase the Amount of Freelance Jobs

Blockchain is slowly but surely infiltrating our lives, changing how we work and do business.

If you're a freelancer, you should know how this technology will transform your occupation forever.

In recent years, technology and a global pandemic have radically changed the concept of work. For many, earning a living does not require leaving their homes.

Some don't even have to get out of bed to work. Ironically, they defy the primary condition for putting bread on the table, which people have practiced for millennia.

Meanwhile, businesses realized that they could rely on freelancers working remotely just as well as physically present employees. For instance, some reports estimate that roughly 1/3 of the global workforce (1.2 billion people) is freelancers.

Moreover, they represent a multi-trillion market contributing significantly to each country's GDP. Now, blockchain can enhance those figures substantially.

We will go into detail on how blockchain will revolutionize the freelancer industry. Also, we’ll list three blockchain-based platforms for freelancers. Once you go through this article, you should better understand what blockchain means for freelancing in general and with examples.

Why Going into Blockchain is a Logical Evolutionary Step for Freelancers

Blockchain technology can decentralize traditional networks and enable people to connect directly without the need for third parties.

Doing so disrupts entire industries, lowers the risk of fraud, and eliminates record manipulation.

The freelancer market is among the first to experience the impact of blockchain technology. The number of independent workers has grown exponentially over the years.

Also, countless businesses are foraying the industry looking for outstanding talents to solve their short-term projects. However, neither the freelancers nor the employers are happy with those running the market, the online freelancer platforms.

The freelancer market was a pristine habitat for web developers, graphic designers, and content writers a decade ago. Freelancer platforms would connect them with businesses and entrepreneurs, who would hire them for various projects. 

Acting as an intermediary allowed platforms to charge both parties a commission (around 20%) on their agreed fee. In return, it keeps all the funds in escrow until their agreement ends. This way, no party would suffer financially should the other fail to meet the terms of their online contract.

That's how today's market leaders, Upwork, Fiverr, and Freelancer.com, developed into giant portals setting yearly income records. For instance, Upwork generated over $373 million in revenue only in 2020, double what it accrued in 2016. Above all, they lacked a superior technological competitor…until now.

Blockchain technology can cut out the middleman between service buyers and freelancers. Furthermore, it can provide greater security and better transaction records. Most importantly, it would save both parties from paying service fees.

Still, blockchain will not lead to the extinction of freelancer platforms. Instead, it will force them to adapt and improve. Here are some of the ways in which blockchain and freelancing could benefit from a merger!

More Trust and Security

Blockchain facilitates peer-to-peer transactions, thus excluding a third party necessary to approve them. However, freelancer platforms can migrate to blockchain and still play a significant role. After all, freelancers and buyers still need a venue to meet, discuss business, and exchange skills for money.

Two parties can use smart contracts to exchange money for freelance work on the blockchain. A smart contract is a self-executing and self-enforcing agreement containing terms and conditions. Once both parties agree on something, the blockchain stores the contract making it almost risk-free to modification or hacking.

A smart contract can store assets securely until both parties meet the predetermined requirements. For instance, it won't release a freelancer's pay until they deliver the work per their agreement with the buyer. Conversely, it doesn't release the work to the buyer if the latter doesn't make proof of payment. Simply put, a smart contract can act as a peer-to-peer escrow service between two parties without third-party involvement.

Lastly, smart contracts do not have fine printing. All their conditions are transparent and available for every relevant party to see. Therefore, businesses and freelancers cannot scam each other or include hidden terms in their agreements. In return, they both benefit from a more trusting and secure work relationship.

Fewer to No Fees

The current freelancer environment can be highly prohibitive for many newcomers. For instance, most of them have to compete at low rates ($5 to $10) per gig. Furthermore, they have to pay up to 20% of their income to the freelancer platform. Therefore, most people cannot make a living from it and give up on freelancing early on in their careers.

Blockchain-based freelancer platforms will most likely be cheaper to use than the current online freelancer websites. Since the third-party escrow service disappears, businesses and freelancers no longer have to pay its fees. Therefore, they can each save up to 20% on their capital and income, respectively.

Verifiable Records

Currently, freelancers face a considerable risk of losing their track record in the industry. For instance, the platforms they work on can experience data loss or hacker attacks. Alternatively, disputes with buyers could lead to permanent bans. A freelancer would find it almost impossible to prove their career exploits and overall performance in both cases.

On the other hand, businesses risk contracting freelancers with fake CVs or false track records.

For example, some freelancers could have false reviews on their profiles. Others could use somebody else's work to make it seem they have higher skills. In both cases, businesses may lose significant funds to misleading freelancers.

On the blockchain, both parties can easily avoid these risks. This technology saves freelancers and businesses alike a verifiable and immutable track record. This way, independent workers do not risk losing their hard-earned career records. Also, companies do not expose their capital to freelancers with tampered reviews and CVs.

New Specializations

Every technological advent creates new markets and, therefore, demands new skills. Blockchain can provide freelancers with new niches to explore and master. For instance, this report shows that one of the top-20 skills businesses search for nowadays is blockchain expertise.

Currently, the demand exceeds the supply of blockchain expert freelancers. Therefore, newcomers can specialize in an emerging field and not have to compete in already established freelance categories.

All these benefits and more will be available on blockchain-based freelancer platforms. Now, let’s look at three such projects to better understand their modus operandi.

3 Blockchain Platforms for Freelancers

Before we dive deeper, we should mention that the platforms below, similar to blockchain technology, are still developing. Nevertheless, they represent exciting prospects for the future of the freelance industry.

Gig Economy Platform (GigEcoin)

GigEcoin (GIG) is a decentralized platform that connects freelancers with countless job opportunities worldwide. One of its main advantages is its zero-commission policy. This means that both employers and independent workers can collaborate on projects without paying taxes for using the platform.

Initially, the GIG developers built the Gig Economy Platform on the BLAKE (Hash Function) and a primary J++ Application. However, following intense work and 42 upgrades, the platform migrated to the current Lightning ECR-20 Network. As a result, it developed into an entirely interoperable decentralized application (dApp) for jobs and DeFi banking.

GigEcoin uses artificial intelligence (AI) technology to analyze freelancers' conceptual and cognitive skills. This enables employers to sort through a blockchain database of immutable CVs and find the ideal talents.

The team behind GigEcoin believes that a new era of remote work applications and DeFi banking is imminent. To this end, it is working to implement new tech banking solutions allowing users to swap over 10 crypto assets.

The platform shares operations between its head office in Dubai, India, Singapore, the U.K., and South Korea. Their primary focus is providing clients with optimal security standards and ensuring their earnings and wages are always safe.

You can use GigEcoin by downloading the app from Apple Store (iOS) and or Android on GooglePlay. Next, you will have to activate the KYC process. The Gig Economy Platform algorithm helps you discover gigs through machine-learned skills and geolocation. Lastly, the platform enables you to get certifications on your DeFi Banking credentials.

Ethlance

Ethlance is a freelancer platform running on the Ethereum blockchain, thus its moniker. It uses a decentralized web protocol, IPFS, to handle front-end files and has a zero-fee policy. Thanks to its use of smart contracts, buyers and freelancers can interact and exchange assets for work without intermediaries.

On the other hand, those using Ethlance have to pay the “gas fees” on the blockchain. Gas is the cost of performing transactions on the Ethereum network. The developers hope that, in most cases, the gas fee will be lower than traditional online freelance platforms charge users.

Because it is still in full development, Ethlance lacks several features that freelancer platforms provide. Notably, you cannot search for gigs through full-text inserts. Instead, you can sort job entries according to over 4,700 predefined skills. 

Alternatively, businesses can look for freelancers by sorting them according to various criteria, such as skills and hourly rates. Also, they can pick independent workers according to their native countries, mother tongues, or ratings.

Either way, both businesses, and freelancers can view each other's previous feedback before agreeing on working together. One can join Ethlance using an Ethereum-compatible tool, such as the MetaMask wallet or Ethereum’s Mist browser.

Bounty0x

Bounty0x is a decentralized platform compatible with multiple blockchains, including Ethereum, EOS, TRON, Waves, NEO, and Stellar. It combines freelancing with crypto-accruing to engage both independent workers and businesses.

Freelancers can use Bount0x to find marketing, content creation, and software development gigs. Simply put, project developers can post their work and offer cryptocurrency bounties to those finding bugs in it. Alternatively, they can post gigs requiring translations, surveys, and video animation. On the other hand, the bounty hunters can simultaneously earn crypto and reviews when successfully completing their tasks.

Bounty0x is a token agnostic platform, which means businesses can pay bounty hunters with any cryptocurrency. Furthermore, it has a multi-tier reward system that incentivizes freelancers to perform better. The more skills and positive reviews they have, the more crypto they can earn.

Another great benefit of Bounty0x is the platform’s security standards. Developers can use KYC standards to verify the credentials of bounty hunters. This way, they avoid hiring freelancers with false reviews and instead get the right person for the job every time.

Lastly, Bounty0x features over 50,000 bounty hunters at the time of writing. This means that businesses benefit from far-reaching exposure when posting their gigs on the platform.

Final Thoughts

Since it is still a relatively new technology, blockchain can produce unexpected and even some disappointing results. No one can back its indubitable success across all industries and markets. However, as with any technological advance, blockchain can also fundamentally shift several sectors. And the freelancer market is most likely the next one in line.

If you are a freelancer, you will probably experience the rise of blockchain-based platforms. But, even if you are not in this field, you will at least know where billions of people work remotely.